Is the Lowe’s Credit Card Worth It?

Is the Lowe’s Credit score Card Price It?

Like most nationwide retailers, Lowe’s has a co-branded bank card product its clients can receive, referred to as the Lowe’s Benefit Card. Issued by retailer bank card large Synchrony Monetary, the Lowe’s Benefit Card affords some fairly priceless perks.

Prospects who cost Lowe’s purchases to the cardboard can select between a robust on a regular basis low cost, or particular financing phrases, and the cardboard has no annual payment. There are some downsides to think about as effectively, as the cardboard is not the only option for everybody. This is a rundown of the advantages and downsides of the Lowe’s Benefit Card, in addition to some options it’s possible you’ll need to take into account.

Notice: That is concerning the Lowe’s Benefit Card, which is the non-public (non-business) model of Lowe’s co-branded bank card merchandise. There may be additionally a company Lowe’s bank card that’s issued by American Specific, and several other types of Lowe’s company accounts.

Advantages of the Lowe’s Credit score Card

When you store at Lowe’s, or are planning on doing some main house enhancements, there are actually some good causes so as to add the Lowe’s bank card to your pockets. Listed here are the highest advantages of the Lowe’s Benefit Card:

Glorious on a regular basis rewards price

The Lowe’s Benefit Card has an incredible on a regular basis rewards price. Prospects can get 5% off all purchases on their playing cards, on high of every other relevant reductions. Even the most effective cash-back bank cards have on a regular basis rewards charges within the 2% ballpark, and the playing cards that do supply 5% rewards accomplish that solely in rotating classes. So, a 5% rewards price on purchases is fairly aggressive.

To be clear, this is not money lower back, nevertheless it’s successfully the identical factor. As a substitute of providing you with 5% of your a refund at a later date, your Lowe’s purchases will merely price 5% lower than they in any other case would.

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You’ll be able to take six months to pay for any massive purchases

The interest-free financing choice is nice. On purchases of $299 or extra, clients have the selection between the 5% low cost or six-month deferred-interest financing. Contemplating that the Lowe’s Benefit Card’s customary APR is 26.99% as of this writing, this profit may be much more priceless over a six-month interval than the low cost.

Nevertheless, take into account that that is deferred-interest financing, not 0% APR financing. This is the distinction. When you’ve got 0% APR financing, curiosity will solely start accumulating after the no-interest interval expires. With deferred-interest financing, should you do not pay the steadiness in full earlier than the promotional interval ends (inside six months, on this case), curiosity can be charged to your account retroactively from the date of the acquisition. In different phrases, this profit is barely priceless should you pay the acquisition off in full inside six months.

It is also value mentioning that there are sometimes promotional deferred-interest financing affords with longer phrases, akin to 12, 18, and even 24 months. Nevertheless, the six-month choice is at all times out there.

Challenge financing — like a private loan, however probably with a decrease APR

Lowe’s Benefit Card clients even have the power to request “undertaking financing,” which offers prolonged, low-APR reimbursement phrases. As of December 2018, the undertaking financing phrases which might be out there embody 36 fastened month-to-month funds at 3.99% APR, 60 fastened month-to-month funds at 5.99% APR, and 84 fastened month-to-month funds at 7.99% APR. These can be found on purchases of $2,000 or extra on the Lowe’s Benefit Card, and to be completely clear, undertaking financing must be requested — it is not computerized. And it could possibly’t be mixed with the 5% on a regular basis low cost.

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No annual payment

The Lowe’s Benefit Card has no annual payment, so it will not price you something on an ongoing foundation to reap the benefits of the cardboard’s advantages. Most retailer bank cards do not cost an annual payment, and the Lowe’s Benefit Card is not any exception.

Potential drawbacks of the Lowe’s Benefit Card

Whereas there are actually some good causes to make use of the Lowe’s bank card, like most bank card merchandise, there are a number of notable drawbacks as effectively. Listed here are a few of the main destructive components to remember when deciding whether or not or to not apply for the Lowe’s Benefit Card.

  • The cardboard’s introductory supply usually is not nice, particularly in comparison with what you could possibly get from a few of the finest cash-back bank cards. It is not unusual for cash-back bank cards to provide introductory bonuses value $100 or extra after as little as $500 in spending. Whereas the precise affords for the Lowe’s Benefit Card change, they’re often within the ballpark of $25 off the primary buy with the cardboard.
  • It is solely useable at Lowe’s and on-line. This one is fairly apparent however is value mentioning. The Lowe’s Benefit Card is really a retailer bank card. It’s not a part of a significant bank card community, akin to Visa or Mastercard, and might due to this fact solely be used for Lowe’s purchases. Nevertheless, there’s a company model of the Lowe’s bank card that’s issued by American Specific and can be utilized in every single place Amex playing cards are accepted.
  • The Lowe’s Benefit Card has an above-average rate of interest. Whereas the cardboard’s customary APR can change over time, for context, take into account that the usual APR is 26.99% as of this writing. That is about 10 share factors above the U.S. standard bank card APR. So, except you reap the benefits of one of many particular financing offers I discussed or pay your invoice in full each month, the Lowe’s Benefit Card can turn into an costly approach to pay for purchases, even contemplating the 5% low cost.
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Is the Lowe’s Benefit Card value it?

The underside line is that the Lowe’s Benefit Card is an effective bank card to have if:

  • You need the 5% low cost and plan to pay your total assertion steadiness in full every month; or
  • You just like the particular financing phrases, and are assured that you would be able to pay the complete steadiness through the promotional interval; or
  • You need to finance a high-cost house enchancment undertaking with a low fastened rate of interest.

Alternatively, the Lowe’s Benefit Card might be not the only option should you plan to hold a (non-promotional) steadiness from month to month, as you are more likely to discover lower-interest bank cards, particularly you probably have a robust credit score historical past. Or, should you simply need an all-in-one bank card that you should use at any service provider (not simply at Lowe’s), it’s best to in all probability take into account a few of the options.