Credit Cards

What Bank Does Lowes Credit Card Use

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

What Bank Does Lowes Credit Card Use? A branded credit card is offered by Lowe’s, as is the case with many retailers. The Lowe’s card, like other store cards, may only be used at Lowe’s, and the savings and benefits you receive are only accessible there.

These savings and bonuses are plentiful. After signing up for the card, you’ll receive no annual charge, and you’ll be able to save up to $100 on your first in-store purchase (more on that below).

However, the Lowe’s store card’s normal annual percentage rate (APR) is rather high, as is the case with many other store cards. And if you pay off your credit card within the promotional time, you’ll save money on interest. Unpaid balances accrue interest from the date of purchase, so you might be saddled with a mountain of debt. Other loyalty cards that aren’t connected only to a certain retailer’s brand provide more freedom of choice.

If you’re a do-it-yourselfer, you may want to give the Lowe’s credit card a second thought, but many do. To help you decide, here are seven things to consider.

A 1.5% discount is available at checkout.

Most purchases made with your Lowe’s credit card will result in a 5 percent discount. This is a nice perk that comes with the card itself. Lowe’s credit card gives this discount straight immediately, unlike many other retail credit cards that only send you monthly savings or reward incentives after you’ve bought anything. As a consequence, you won’t have to wait for a discount to show up on your credit card again.

For the 5% discount, only qualifying purchases are eligible, which excludes gift certificates. You cannot use this coupon with any other Lowe’s discounts, including military and employee discounts and the Lowe’s low price guarantee. Contractor Packs are not eligible for any discounts on fees, taxes, replacement plans, assembly expenses, shipping, or delivery. Excluded from the discount are AGA, Bosch Benchmark; Fisher & Paykel; Heartland; Kichler; Liebherr appliances; NXR; MARVEL; Monogram; SMEG; and Weber.

Deferred financing offers

You can choose six months of 0% APR financing instead of the 5% rebate on purchases of $299 or more. Occasionally, Lowe’s conducts special specials that allow customers to receive 0% financing for a longer length of time. For example, starting of July 2019, you can obtain 12 months at 0% APR on appliances or installed HVAC or AC.

To qualify for the 0% interest rate, you must pay off the whole purchase balance in full by the end of the promotional term. If you don’t, you’ll be liable for interest from the time of purchase, which may add up quickly.

Special project financing

Project Financing is available for purchases of $2,000 or more. Your APR is reduced and you may pay off your project with fixed payments over a predetermined length of time as a result of this. Project finance will be available in three ways starting in July 2019:

  • If you choose 36 fixed monthly payments, you’ll pay 3.99% APR.
  • For 60 set monthly payments, you’ll pay 5.99% APR, or 5.99% each year.
  • If you choose 84 fixed monthly payments, you’ll pay 7.99% APR.

Requesting this special financing must be done at the time of purchase. Even if you use your card for regular purchases, your regular account conditions will continue to apply, and the fixed monthly payment required for special project financing may be larger than the typical monthly minimum payment you would have to pay.

First-time customers get a discount on their purchases.

Your first in-store transaction with your new Lowe’s credit card qualifies for a special discount as well. If your first purchase is between $30 and $599.99, you’ll save $30, and if it’s $600 or more, you’ll save $100.

If you wait too long to make your first purchase, you’ll lose the savings you’ve accrued. These savings also can’t be coupled with any other offers like credit card discounts, coupons, or other special promotional deals.

A high standard APR

Lowe’s credit cards come with several serious drawbacks, and the typical APR of 26.99 percent is one of the most notable.

If you don’t pay off your debt at the conclusion of a billing cycle or before your 0% promotional rate ends, you might owe a lot of money because this is a high interest rate. There is a big price to pay for using this card because of the high interest rate you’d be charged compared to the 5% discount on your purchases.

On financing choices, deferring interest might lead to a large debt.

Deferred interest deals are risky since if you don’t pay off your whole balance on the card by the end of the indicated time period, you’ll owe back interest.

After six months of interest-free borrowing on your Lowe’s credit card, if you fail to pay back the loan in full, you owe 26.99 percent of the $1,500 you borrowed. This equates to almost $200 in interest expenses for a six-month period on a $1,500 loan at a rate of 26.99 percent.

In addition, project funding might be a dangerous choice.

If you skip a set monthly payment, your interest rate might rise back to the regular APR, which may not be the greatest financial decision. The low fixed interest rates may still be better than personal loans or home improvement loans, but they might still increase the cost of your project compared to paying cash.

Who should apply for the Lowe’s Advantage Credit Card?

Who is the Lowe’s Advantage Card best suited for, therefore, given its four positives and three negatives?

DIYers who want to use the 5 percent discount on a frequent basis or who plan to pay off a project over time and are certain they will be able to do it on time may consider the card. In order to get the most out of the card, you must be certain that you will be able to make all of your monthly payments on time.

To earn a 5 percent discount on all purchases, you may want to switch to the Lowe’s credit card instead of the Home Depot card if you have a lot of home improvement projects planned and both shops are available in your neighborhood.

There is no annual fee on the Lowe’s store card, and users receive a 5% discount on all Lowe’s purchases. This might be a better alternative if you spend a lot on home renovation and would likely reach the rewards limitations on conventional cash back credit cards.

How to apply for the Lowe’s Advantage Card

On the Lowe’s Advantage Credit Card website, click “Apply Now.” For this purpose, you will need to enter your name, address and Social Security number.

If you want to apply for the Lowe’s credit card in person, you can do so. Talk to a cashier or customer service representative about getting credit. It’s common for Lowe’s to provide special sign-up deals for a limited period that are exclusively available to individuals who apply in-store. Those with a “good” or better credit rating often get their applications accepted within a few days.

Lowe’s Advantage card substitutes

Everyone isn’t a good candidate for the Advantage store credit card. Instead of carrying around a second card in your wallet, consider getting one of the top rewards credit cards that can be used in a variety of places.

You may want to consider the Citi Double Cash Card. On every purchase you make, you may earn up to 2% cash back: 1.5% as you buy, and 1.5% as you pay. As a Mastercard, you may use it at any establishment that accepts MasterCards. The yearly charge for this card is also waived.

It’s possible that the American Express Lowe’s Business Rewards Credit Card may be a better choice if you often do home renovations as part of your work duties. Because it’s an Amex card, you’ll get extra benefits like rental car insurance and extended warranties on goods. It’s not only Lowe’s where you may use this business credit card.

The best zero percent APR credit cards may also be a good choice, as many credit card issuers provide this special rate for months following the purchase or balance transfer without the danger of postponed interest charges. It may be the quickest and most convenient method of financing significant home remodeling projects. It is possible to get 0% APR financing for 15 months with the Chase Freedom Flex (then 14.99 percent to 23.74 percent (variable)).

If you want to pay for goods over time, you should check these other credit card options to determine if one is a better fit than the Lowe’s home improvement card.

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