Skip to content
Review

Pros and Cons of The Home Depot Project Loan

Advertiser Disclosure

Credit Card Insider is an independent, advertising supported website. Credit Card Insider receives compensation from some credit card issuers as advertisers. Advertiser relationships do not affect card ratings or our Editor’s Best Card Picks. Credit Card Insider has not reviewed all available credit card offers in the marketplace. Content is not provided or commissioned by any credit card issuers. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. When you click on any ‘Apply Now’ button, the most up-to-date terms and conditions, rates, and fee information will be presented by the issuer. Credit Card Insider has partnered with CardRatings for our coverage of credit card products. Credit Card Insider and CardRatings may receive a commission from card issuers. A list of these issuers can be found on our Editorial Guidelines.

Brendan Harkness By Brendan Harkness Sep 23, 2015 | Updated Jan 16, 2020
Our rating
Min. credit level: Fair
Annual Fee: $0
Regular APR: 7.99% Fixed

The Home Depot Project Loan

Our rating
Fair Min. credit level
Apply Now See Alternatives

The Home Depot offers The Home Depot Project Loan for regular customers to pay for a single large job at home (it’s not meant for contractors).

This card isn’t for earning rewards or getting benefits. Instead, it provides a very large credit limit (up to $55,000) for home building and renovation projects, and gives you a very long time (7 years) to pay it off.

If you want to shop at The Home Depot but you’re not looking to finance a large project, you’ll be better off with a basic rewards credit card.

Read on to learn how this card can help pay for your next home renovation, and if this option will really be worth it for you.

Where Can I Use This Card?

The Home Depot Project Loan can only be used at The Home Depot stores and www.HomeDepot.com.

The Home Depot Project Loan

The Home Depot Project Loan

Our rating
Min. credit levelFair
Details
Annual Fee$0
Regular APR7.99% Fixed
Apply Now

securely on the issuer's website

The information related to The Home Depot Project Loan has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

The Offer

Once you’re approved you’ll be granted a loan of up to $55,000. Then you’ll have 6 months to make purchases for your project.

During that 6-month period, you’ll only need to make payments on the interest for any purchases you make, at a fixed rate of 7.99% APR.

After the 6 months are over you’ll have up to 84 months to pay off the balance, at the same fixed rate of 7.99% APR. There’s no penalty for prepayment.

How Much Will The Project Loan Cost?

Paying off a large balance over 84 months at a rate of 7.99% APR will end up being quite expensive.

Here’s a breakdown of your monthly payments for various loan amounts over 84 months, along with how much more you’ll end up paying over the original balance.

Loan Amount 84 Monthly Payments Amount Paid Over Original Balance
$2,500 $39 $776
$5,000 $78 $1,552
$10,000 $156 $3,104
$20,000 $312 $6,208
$30,000 $468 $9,312
$40,000 $624 $12,416
$45,000 $702 $13,968
$50,000 $780 $15,520
$55,000 $857 $17,072

As you can see, you’ll end up paying over $700 extra for the smallest loan listed here.

For the largest loan of $55k you’ll end up paying over $15k extra – that’s over 30% the original loan amount!

So you’ll be paying quite a bit more for your project if you use this loan. But, you can cut down on those extra costs substantially by paying your balance in full well before the 84-month due date.

If you can pay off your entire project in full immediately you’ll be able to save a lot of money compared to this plan.

Or, you could consider using a regular rewards credit card, maybe one with a 0% introductory APR, to pay for a smaller portion of your project.

The Costs & Fees

Annual Fee Regular APR Regular Balance Transfer APR Cash Advance APR
$0 7.99% Fixed N/A N/A
Penalty APR Late Fee Returned Payment Fee
None None None

The Bottom Line

If you really need a large credit line to pay for a construction project, this card can help you out.

But you’ll end up paying a lot more for that project if you take the full 84 months to pay it off and incur the maximum amount of interest.

This deal will be more worthwhile the earlier you can pay off the entire balance.

If you can afford it, it will be much cheaper to pay off your entire project in full immediately.

The Home Depot also offers The Home Depot Project Loan, meant to help you fund big home improvement projects. It’s available with a very high credit limit and provides long-term financing, but you may be better off without it if you’re going to pay a lot of interest.

Or, consider using a general rewards credit card that will give you a bit of cash back for your purchases. You may not be able to fund your entire project with a smaller credit line, but you can put some purchases on it. Many even come with 0% introductory APR periods that last pretty long.

Was this helpful?

Alternatives to the Home Depot Project Loan

Looking for other ways to pay off large balances over an extended period of time? Here are a few options you can use at different retailers.

Lowe's Advantage Credit Card

Lowe's Advantage Credit Card

Our rating
Min. credit level Fair
Details
Annual Fee $0
Regular APR 26.99% Variable
Apply Now

securely on the issuer's website

The Lowe's Advantage Credit Card (Review) is a Lowe’s store card that offers some discounts and different financing options.

If you prefer Lowe’s to Home Depot, this card would be more your style. It features 5% off most purchases, unless you choose a special financing option.

If you make a purchase of at least $299 you’ll qualify for six-month deferred-interest financing, and purchases of at least $2,000 are eligible for 84-month financing at 7.99% APR (current offers at the time of publication).

But be warned — just like Home Depot’s deferred-interest financing, if you choose the six-month option and miss a payment or fail to pay back the full balance, you’ll get hit with all that deferred interest. So you’ll get some additional time to pay off purchases, with the caveat of needing to do so responsibly.

Spending Rewards
  • 5% off or special financing at Lowes
  • Purchase APR: 26.99% Variable
  • Annual fee: $0
Chase Freedom®

Chase Freedom®

Our rating
Min. credit level Good
Details
Annual Fee $0
Regular APR 16.49% - 25.24% Variable

The Chase Freedom® (Review) is a popular option for a rewards card with a good cash back program, featuring 5% cash back in quarterly rotating categories.

Good for yearly spending across multiple categories, it provides a wider variety of spending options for your potential projects. It’s a pretty rewarding card that’ll earn you cash back, unlike The Home Depot Project Loan, while still giving you quite a while to pay off purchases before accruing interest. You get access to some helpful benefits, whereas with the Project Loan you won’t get anything aside from a very long time to pay off the balance.

If you don’t want to be limited in where you can spend when it comes to your projects and want to earn cash back, this card is one to consider.

Spending Rewards
  • 5% cash back on the first $1,500 spent per quarter (then 1%), in categories that rotate throughout the year (see calendar below)
  • 1% cash back on all other purchases
Introductory Bonus Offer
  • $150 cash bonus for spending $500 in the first 3 months after account opening
    • Return on spend: 30%
Quarter 5% Cash Back Category
2020: January – March Gas Stations, Internet/Cable/Phone Services, Select Streaming Services, Lyft
2019: October – December Department Stores, PayPal, Chase Pay
2019: July – September Gas Stations, Streaming Services
2019: April – June Grocery Stores, Home Improvement Stores
2019: January – March Gas Stations, Tolls, Drugstores

You’ll need to manually activate your 5% categories for each quarter. You can do this by logging in to your online account.

Learn more about the Chase Freedom’s categories and how to maximize them each quarter.

  • DoorDash membership: Cardholders can subscribe to DoorDash’s DashPass membership for free for three months, and then get a 50% membership discount for the following nine months.
  • Shop through Chase/Chase Offers: Get more cash back at select retailers with the Shop through Chase marketplace and Chase Offers.
  • Credit Journey: Access the Credit Journey credit monitoring tool, which offers a way to keep track of your credit from month to month. It provides your VantageScore 3.0, based on your TransUnion credit report.
  • Shopping and travel protections: Purchase Protection, Extended Warranty, Roadside Dispatch, Trip Cancellation/Interruption, and more
  • Purchase and Balance Transfer APR: 0% for 15 months, then 16.49% - 25.24% Variable
  • Annual fee: $0
Chase Freedom Unlimited®

Chase Freedom Unlimited®

Our rating
Min. credit level Good
Details
Annual Fee $0
Regular APR 16.49% - 25.24% Variable

The Chase Freedom Unlimited® (Review) is a great general-use card for all manner of spending.

Unlike The Home Depot Project Loan, you’ll earn rewards on every purchase with the Chase Freedom Unlimited, and still get a solid amount of time to pay them off. You’ll get the added flexibility of being able to use this card for all of your spending, including home projects, and get access to some helpful benefits such as a credit monitoring tool and the opportunity to earn more cash back with select retailers.

If you want a simple, rewarding option that still offers plenty of time to pay off purchases while earning cash back (plus a nice bonus), this might be the card for you.

Spending Rewards
  • 5% cash back on Lyft rides (through March 2020)
  • 1.5% cash back on all other purchases
Introductory Bonus Offer
  • $150 cash bonus for spending $500 in the first 3 months
    • Return on spend: 30%
  • DoorDash membership: Cardholders can subscribe to DoorDash’s DashPass membership for free for three months, and then get a 50% membership discount for the following nine months.
  • Shop through Chase/Chase Offers: Get more cash back at select retailers with the Shop Through Chase marketplace and Chase Offers.
  • Credit Journey: Access the Credit Journey credit monitoring tool, providing a way to keep track of your credit from month to month. This provides your VantageScore 3.0, based on your TransUnion credit report.
  • Shopping and travel protections: Purchase Protection, Extended Warranty, Travel Accident Insurance, Auto Rental Collision Damage Waiver, and more
  • Purchase and Balance Transfer APR: 0% for 15 months, then 16.49% - 25.24% Variable
  • Annual fee: $0
U.S. Bank Visa® Platinum Card

U.S. Bank Visa® Platinum Card

Our rating
Min. credit level Fair
Details
Annual Fee $0
Regular APR 15.49%–25.49% Variable
Apply Now

securely on the issuer's website

The U.S. Bank Visa® Platinum Card offers one of the longest introductory APRs for both purchases and balance transfers available.

If you need some extra time to pay, the U.S. Bank Visa Platinum gives you 18 billing cycles to do so. It provides another alternative if you don’t feel like using the Home Depot loan for seven years, accruing interest as you go. It also allows you to make purchases at stores other than Home Depot, giving you more flexibility when it comes to choosing your project supplies, and you’re not stuck with a six-month window.

So if you’re looking for a card that won’t limit where you can shop and still provides a long time to pay off balances, this might be a good option.

  • Free credit score: Get access to your VantageScore 3.0, based on your TransUnion credit report.
  • Shopping and travel protections: Cell Phone Protection, Extended Warranty Protection, Auto Rental Collision Damage Waiver, and more
  • Purchase and Balance Transfer APR: 0% for 18 billing cycles, then 15.49%–25.49% Variable
  • Annual fee: $0

If you this review was helpful to you, go ahead and share it with a friend! How do you like to shop at The Home Depot? If you use The Home Depot Project Loan, do you end up paying a lot of interest? Leave your own review for other visitors below, we’d love to hear from you!

Or learn more about reward credit cards and see our picks for the Best Reward Cards.
AT A GLANCE

Created to help make large home projects through Home Depot more affordable, you’ll get 84 months to pay off big expenses. But you’d do well to pay off your project as soon as you can, as you’ll end up paying much more than you would have due to interest.

Credit Card Insider receives compensation from advertisers whose products may be mentioned on this page. Advertiser relationships do not affect card evaluations. Advertising partners do not edit or endorse our editorial content. Content is accurate to the best of our knowledge when it's published. Learn more in our Editorial Guidelines.

The information related to The Home Depot Project Loan has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

The responses below are not provided or commissioned by bank advertisers. Responses have not been reviewed, approved or otherwise endorsed by bank advertisers. It is not the bank advertisers' responsibility to ensure all posts and/or questions are answered.

  • Melissa Baez

    worst service ever!!! i will NEVER use them again and i’ll make sure i stop as many people as i can from doing so also!!! First, they dropped off my roof supplies (pallets of material) on 8/31. The forklift wouldn’t fit in my driveway so the driver literally left everything on the sidewalk in front of my driveway!!! The install was supposed to begin on 9/3. About 30 minutes after they drop this stuff off at my home, i get a call that the workers and manager were fired and they’re not sure when our next install date will be. Now mind you, i can’t use my driveway due to the pallets they left blocking me and my neighbor in. We cannot get in contact with any “manager” or “supervisor” from their team to find out what’s going on. We FINALLY get through to someone and the install begins on 10/5 and is done by 10/8. The contractors didn’t use 36 sheets of the 42 sheets of plywood that were delivered and we were charged for!!! We fought for a discount due to the inconvenience. What we got was, oh, here’s a credit for the plywood we didn’t use. Today, i miss an entire day of work for the town to come and inspect the roof and close out the permit. Well, home depot took out the permit for “replacing roof sheathing” they were supposed to have the inspector come by to check out the sheathing and never did. When the inspector came today, we FAILED INSPECTION because they already covered the sheathing with all the shingles. I can’t tell you the lawsuit i plan on their sorry asses if the town fines us!!!!!! DO NOT USE HOME DEPOT LOAN SERVICES!!!!

  • Pullen Williams

    Greetings to you from this universal finance company “PULLEN WILLIAMS LOAN COMPANY” this is to inform the general public of our Genuine and affordable loan offer. But then, this universal Company(with over 12years experience)is a private company that providesa financial services with a flexibility that your every day bank cannot afford to provide. if you are interested in obtaining a loan in this company to start up a business,clear debts or any other thing that will benefit you and the world in general, I am here to help you out. The interest part is our low interest rate of 0.3% which depends on the repayment period of up to 45years. if you are interested in obtaining this type of opportunity for your business then,i am here to help you build your foundation. You are required to contact our office via: [email protected]..,.

  • Pullen Williams

    Greetings to you from this universal finance company “PULLEN WILLIAMS LOAN COMPANY” this is to inform the general public of our Genuine and affordable loan offer. But then, this universal Company(with over 12years experience)is a private company that provides financial services with a flexibility that your every day bank cannot afford to provide. if you are interested in obtaining a loan in this company to start up a business,clear debts or any other thing that will benefit you and the world in general, I am here to help you out. The interest part is our low interest rate of 0.3% which depends on the repayment period of up to 45years. if you are interested in obtaining this type of opportunity for your business then,i am here to help you build your foundation. You are required to contact our office via: [email protected].

  • 8404 USN Hosp Corpsman

    (RETIRED I MAKE COOL PUPPETS) Guess my imagination is just going to brag about myself a little but not as finger-gag retching as the braggadocio my wife and I were captive audience to from a phony baloney Home Depot in-home consultant, who, after my Project Loan got okay’d having outstanding credit vetted by Green Sky Inc., felt she needed to take matters further, gushing that her origins were Martha’s Vineyard, MA.

    Of course I pretended to take the bait and throw out a bucket of chum of my own by dropping the names of Carly Simon and James Taylor. Sure enough, we learned Ms. Phony HD Baloney designed and directed several installations for these celebrities, plus hob-nobbed and engaged “Jackie” and the clan in her go-about encounters on the island, though couldn’t recall nor point out what or where Wampanaug Noepe was on a Cape Cod Massachusetts map.

    We got a problem with ripping out tiles and reinstalling a peacock green granite counter and back splash division in our kitchen, notwithstanding we’re ready and willing to pay cash out-of-pocket for a suite of stainless steel kitchen appliances even with a zero balance on my Home Depot credit card I routinely pay down by habit.

    https://uploads.disquscdn.com/images/f9df2b18f578a541464251222d8a34dfed0582ba63e879476d5a30b6cedf32cc.jpg