If you consider yourself a DIY’er, you know how many trips to Lowe’s or Home Depot it’ll take to complete a few projects around the house. And you know how expensive those trips can be. So when I read the details of the Lowe’s credit card I was intrigued.

Not only does it give you a flat 5% discount at the cash register, but it offers some great financing incentives throughout the year. If you pay off your balance every month, the Lowe’s card can easily save you hundreds of dollars a year. Here are the details and some insider tips to make the card work for you…

Lowe’s Credit Card Ins & Outs:

Let’s take a closer look at the consumer-oriented Lowe’s Advantage credit card.

Lowe’s Advantage Consumer Card

Here are the major benefits worth knowing:

• 5% Instant Discount: When you use your card at any Lowe’s, you’ll get an instant 5% discount at the time of purchase, no minimum order size required. You cannot combine any discounts (including military and employee discount), or any coupons with your 5% discount.
• 6 Months with No Interest: Instead of the 5% discount, you can opt for 0% financing for 6 months on a purchase of $299 or more. Nice benefit for a large purchase, more on this later.
• Project Financing: Instead of the above 2 options, you can also opt for 36 fixed monthly payments at 3.99% APR until paid in full, 60 fixed monthly payments at 5.99% APR until paid in full, or 84 fixed monthly payments at 7.99%.
• Special Promotional Offers: Currently you can also get a fixed 1.99% APR for 3 years on riding lawnmowers and major appliances.
• No Annual Fee: Like ever.

And here are some of the negatives to this card:

• High APR: Be sure you pay off your balance every month or get hit by a 26.99% APR.
• Special Interest is Deferred: Be aware that the 6 months with no interest comes at a hefty price if you don’t pay off the purchase in-full within 6 months. If you have a balance after 6 months, you’ll have to go back and pay interest on the entire purchase starting at the original purchase date.

See Also: The 11 Best Credit Cards for Savvy Shoppers

FAQ with the Lowe’s Credit Card:

Can You Get a Cash Advance?

No, unfortunately no cash advance is currently available.

How About a Balance Transfer?

Yes, you can transfer your balance from your Lowe’s credit card to another card whenever you’d like.

How Good Does my Credit Need to Be?

In order to get approved for this card, you’ll need to have “Fair” credit and a credit score at or above 620.

What Will my Credit Limit Be?

It depends solely on your credit history. If you have good credit you can expect a starting credit limit in the $2,000 – $4,000 range.

Should I Opt for 5% Discount or 0% Financing?

This is the big question. If you don’t plan on carrying a balance, go with the 5% instant discount.

But if you plan to make a large purchase, say a $2,500 refrigerator, and want to pay it off over time, you’d be better off going with the 6-month 0% financing.

Let’s do some math:

If you used the 5% discount, the frig would cost $2,375, but you’d rack up $200 in interest at 26.99%, with a total cost of $2,575 over 6 months.

But if you took the 6-month 0% financing, and paid it off within 6 months, your cost would be a flat $2,500, for a total savings of $75.

In terms of savings, your best case scenario would be using the 5% discount then pay it off right away. But this might not be an option for you.

If you end up taking the 0% financing for 6 months, I highly recommend you plan on paying off your balance in 5 months. This way there is NO confusion on dates and payoff periods and you WON’T get hit with a potentially large interest payment.

Does The Home Depot Offer a Similar Card?

While The Home Depot does have a card with special financing incentives, their card does not offer a flat discount like the Lowe’s card does.

How Do I Apply for the Lowe’s Card?

You can apply online by clicking here. The card is provided to Lowe’s by Synchrony Bank.

Ask The Reader: Do you already have the Lowe’s credit card in your wallet? If so, how do you like it and how much money do you think it’s saved you?

By Kyle James