Home Depot (Credit) Cards - which one??

27 Replies

Hi all,

I am confused with all the options Home Depot offers. As a disclaimer, I did read through past posts on this same topic, and still not sure what I should sign up for. What would you recommend for a rehabber?  

 A. Consumer Credit Card

 B. Project Loan Card

 C. Commercial Revolving Charge

 D. Commercial Account

Also, which one(s) would work better for purchases in personal name vs LLC?

Thank you!

Ludmila

@Ludmila M.

Here in Canada, HD does not have the Project Loan card and they just introduced the Commercial Revolving Charge.   I believe CITI operates all their cards for them.

We hold both the Consumer Card and the Commercial Account.

We use the Consumer card pretty much exclusively for purchasing appliances - we do this to take advantage of the 12 - 24 month, 0% interest payment options.

We use the Commercial Account for everything else - because a separate card can be issued to each of my crew and we can track and control spending levels on each card.  We have also set things up so a PO or Job tag is required on each purchase so we can track materials by property.

That said, we do not purchase very much as HD - vanities, lighting, the odd tool - as our regional building supply chain offers much better pricing on standard building materials.

Originally posted by @Ludmila M. :

@Roy N. , thank you for responding!

Great point on 0% for appliances purchases, I haven't thought of that. 

  1. 18 - refrigerators
  2. 12 - ranges
  3. 12 - dishwashers
  4. 2 - chest freezers
  5. 8  - laundry pairs (stackable, front-load, HE washers)

all paid for out of cash flow using 18 - 24 months of 0% financing 

Originally posted by @Roy N. :
Originally posted by @Ludmila M.:

@Roy N. , thank you for responding!

Great point on 0% for appliances purchases, I haven't thought of that. 

  1. 18 - refrigerators
  2. 12 - ranges
  3. 12 - dishwashers
  4. 2 - chest freezers
  5. 8  - laundry pairs (stackable, front-load, HE washers)

all paid for out of cash flow using 18 - 24 months of 0% financing 

 That's great!

It depends on your needs, for example I have a pro account at Lowe's because I get a discount on all my purchases, but I have a Project Loan at Home Depot because of the higher credit limit and the interest only payments for 6 months.  Remember you can have more than one account!

Originally posted by @Micki M. :

It depends on your needs, for example I have a pro account at Lowe's because I get a discount on all my purchases, but I have a Project Loan at Home Depot because of the higher credit limit and the interest only payments for 6 months.  Remember you can have more than one account!

 Thank you!

@Ludmila M. If you have commercial account, both revolving and regulr, gets you 5% instant discount on the counter, you have to ask for it though. One of the commercial require you to pay all charges on monthly billing, and the revolving commercial does not require you to pay everything on a monthly basis but hits an interest after a minimum payment.

Just an FYI.....Menards contractor cards gets you an airline ticket to anywhere in the 48 states for every $100,000.00 you spend there.  This works good if your a developer and build new homes to sell.  Crappy flights though, lots of layovers, I believe Home Depot is a better return..

    You have to spend $200,000.00 though if you want to bring the Wifey...

Originally posted by @Sean Kremer :

Just an FYI.....Menards contractor cards gets you an airline ticket to anywhere in the 48 states for every $100,000.00 you spend there.  This works good if your a developer and build new homes to sell.  Crappy flights though, lots of layovers, I believe Home Depot is a better return..

    You have to spend $200,000.00 though if you want to bring the Wifey...

Menard is such a weirdo.

Originally posted by @Ludmila M. :

Hi all,

I am confused with all the options Home Depot offers. As a disclaimer, I did read through past posts on this same topic, and still not sure what I should sign up for. What would you recommend for a rehabber?  

 A. Consumer Credit Card

 B. Project Loan Card

 C. Commercial Revolving Charge

 D. Commercial Account

Also, which one(s) would work better for purchases in personal name vs LLC?

Thank you!

Ludmila

None of them if you plan on paying off every month and not carrying a balance, instead just get a Spark Card, or a Citi Bank Double Cash credit card, each of them is a pure 2% cash back on all purchases.

If you're going to carry a balance, I can't help you.

Originally posted by @Mike F. :

None of them if you plan on paying off every month and not carrying a balance, instead just get a Spark Card, or a Citi Bank Double Cash credit card, each of them is a pure 2% cash back on all purchases.

If you're going to carry a balance, I can't help you.

Mike:

That is actually not true and perhaps not the best use of available credit facilities.   In running a business there are things as, or more, beneficial than 2% cash-back on purchase.

The HD Commercial Account, like commercial accounts at other suppliers, provides the benefits of itemized invoicing organized by job and/or card holder (employee) and is make entry into the accounting system easier.

The HD Consumer Card offers 0% financing for a minimum of 12 months and, frequently with promotions, 18 or 24 months.   So the $1200 laundry set we purchased the last week in December (Boxing Day sale), will be paid for out of the cashflow of the unit where it will be installed ($66.67/month over 18-months).   Given the time value of capital (cash), not having to spend $1200 upfront is more useful to the business then getting a $24 kickback on a 2% cash-back credit card.

Even though we are a relatively small operation, when you consider we purchase $5K - $8K of appliances in any given year.  We are in the middle of an acquisition which, if successful will require the purchase of 40+ appliances in the next 12-months (budget $30K).  I would rather spend that 30K over 18-24 months (particularly where I'm not paying interest), then all up-front.

Originally posted by @Roy N. :

The HD Commercial Account, like commercial accounts at other suppliers, provides the benefits of itemized invoicing organized by job and/or card holder (employee) and is make entry into the accounting system easier.

Just so you know, you can get that with just a pro account using any payment method you choose. You get emailed receipts, itemized this and that, online viewing of all purchases etc... all without a HD credit card.

Originally posted by @Roy N. :

The HD Consumer Card offers 0% financing for a minimum of 12 months and, frequently with promotions, 18 or 24 months.   So the $1200 laundry set we purchased the last week in December (Boxing Day sale), will be paid for out of the cashflow of the unit where it will be installed ($66.67/month over 18-months).   Given the time value of capital (cash), not having to spend $1200 upfront is more useful to the business then getting a $24 kickback on a 2% cash-back credit card.

Even though we are a relatively small operation, when you consider we purchase $5K - $8K of appliances in any given year.  We are in the middle of an acquisition which, if successful will require the purchase of 40+ appliances in the next 12-months (budget $30K).  I would rather spend that 30K over 18-24 months (particularly where I'm not paying interest), then all up-front.

 I'm in  a cash positive position, I don't need other people's money nor rob peter to pay paul, whether I pay for it up front or in 18 months it's still an expense to me and with abundant cash there is no benefit to me carrying balances so getting another 2% back is just free money on top of the cash already coming in.

Like I said, in my post if you aren't paying off your balance each month I can't help you. If you need other people's money then a 2% cash back card isn't the answer.

I put my maintenance crew on the Commercial Credit card and they can use it immediately and I get the who purchased what - when itemization.

Down side, it's a pay-in-full 30 account and even after using the more that 15 years, they  will still hound you to death if not paid in full - - not HD, but the CITI card backend processing :sigh:

Originally posted by @Mike F. :

 I'm in  a cash positive position, I don't need other people's money nor rob peter to pay paul, whether I pay for it up front or in 18 months it's still an expense to me and with abundant cash there is no benefit to me carrying balances so getting another 2% back is just free money on top of the cash already coming in.

Like I said, in my post if you aren't paying off your balance each month I can't help you. If you need other people's money then a 2% cash back card isn't the answer.

Let's step down of the moral soap box for a second and not make so many assumption about the person you are addressing.

Many of us, like yourself, are in cash positive position and do not "need" other peoples money, but that does not mean you should not use other peoples money if the cost to do so is less than the opportunity costs to use your own capital.    

The case at hand, Home Depot's Consumer card with its 12-24 month payment plan at 0% interest, is "cheaper" money than the opportunity cost of using our own capital - which while parked is earning between a 5.5 - 6.5% return.  In addition, I'm paying for Home Depot's financing programme whether I use it or not ... ie. I do not get any better pricing if I pay upfront versus use their financing.

In my earlier post I indicated we would may be purchasing 40+ appliances (perhaps as many as 80) at some point in the next 12 months.   Sure, we could write a cheque for the purchase, or put that 30K on our credit card and earn $900.00 cash-back.  Or, we could financing the entire purchase at 0% over 18 - 24 months out of cash-flow and leave that 30K to earn 2500 - 3900 over the same period.

Originally posted by @Mike F. :
Originally posted by @Roy N.:

The HD Commercial Account, like commercial accounts at other suppliers, provides the benefits of itemized invoicing organized by job and/or card holder (employee) and is make entry into the accounting system easier.

Just so you know, you can get that with just a pro account using any payment method you choose. You get emailed receipts, itemized this and that, online viewing of all purchases etc... all without a HD credit card.

Already knew that, but thanks.

I notice, you only selected part of my statement to quote.   The part you left out was the ability to have any of our crew pickup materials for a project, which you would not get if I use an alternate method of payment than the monthly charge account.

What moral soap box? I clearly stated -"If you're going to carry a balance I can't help you." Maybe you didn't understand but I was clearly addressing if you aren't carrying a balance a 2% cash back card would be better. All of home depots purchase information is avialable without having one of their CCs. They have a confusing allotment of cards to choose from, they try to get us in Denver with discounts on gas and such and you read the fine print they have limits on what you can earn... don't see anything in Home Depots credit cards that I can't do better with through the majors cards.

If you're in the need for financing in your ventures so be it, everybody is in different places, but don't call it a moral soap box, it's simply people in different places financially.

Originally posted by @Mike F. :

What moral soap box? I clearly stated -"If you're going to carry a balance I can't help you." Maybe you didn't understand but I was clearly addressing if you aren't carrying a balance a 2% cash back card would be better. All of home depots purchase information is avialable without having one of their CCs. They have a confusing allotment of cards to choose from, they try to get us in Denver with discounts on gas and such and you read the fine print they have limits on what you can earn... don't see anything in Home Depots credit cards that I can't do better with through the majors cards.

If you're in the need for financing in your ventures so be it, everybody is in different places, but don't call it a moral soap box, it's simply people in different places financially.

The moral soap box was the dismissive tone of your initial post: "If you are going to carry a balance, I can't help you."

I was merely trying to point out that sometimes, it is advantages - perhaps even a better business tactic - to carry a balance.  I also demonstrated that the cash-back card may not be a better option that carrying a balance which occurs no interest.