Home Depot Project Loan review December 2018 | finder.com

Home Depot Project Loan review

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In-store financing for large home improvement projects with a fixed APR of 7.99%.

You’re making some major changes to your home and know there are going to be lots of trips to Home Depot in the near future. You have an idea of how much you’ll spend, but some costs are hard to predict.

A Home Depot Project Loan could be for you. It’s geared toward regular customers looking for a more affordable way to finance large projects than a credit card. But it’s not ideal if you think you’ll be shopping at other stores — you can only use the funds at Home Depot.

Product NameHome Depot Project Loan
Min Loan Amount$2,500
Max. Loan Amount$55,000
APR7.99%
Interest Rate TypeVariable
Maximum Loan Term7 years
RequirementsCredit 600+, ages 18+, US citizen or permanent resident and live eligible state.
  • Have a credit score of at least 600.
  • Be over 18 years old, or over 19 in Alabama or Nebraska.
  • Be a US citizen or permanent resident.
  • Not live in Guam, Puerto Rico or the US Virgin Islands.

What makes a Home Depot Project Loan unique?

A Home Depot Project Loan was designed with one specific need in mind: major home improvements. Customers get six months to make purchases at Home Depot and seven years to pay off their debt in installments. With a fixed 7.99% APR offered to all eligible borrowers, it’s less expensive than using a credit card. And its long terms combined with no prepayment penalties make it highly flexible.

What is a Home Depot Project Loan?

A Home Depot Project Loan is a type of in-store financing that works like a line of credit and a term loan. After getting approved for the loan, you receive a credit card with a credit limit between $2,500 and $55,000. You get six months to buy whatever you need at Home Depot, making interest-only repayments.

Once the six months are up, you repay the loan in fixed installments over seven years. Since there are no prepayment penalties, you can make extra repayments to save on interest — with such a long loan term, you might want to.

The only fees Home Depot charges are a late fee and a fee if your repayment doesn’t go through, which are outlined in your loan documents.

What are the benefits of a Home Depot Project Loan?

Beyond its minimal fees and flexible repayment terms, there are quite a few benefits of taking out a Home Depot Project Loan:

  • Interest-only repayments while you spend. You don’t have to start making full repayments until six months after you’ve taken out the loan.
  • Minimal fees. There are no fees to apply and no prepayment penalties.
  • Coapplicant allowed. Sharing the cost of the project with someone else? Bring them on to increase your chances of approval.
  • Fair credit OK. You only need a personal credit score of 600 to be eligible for a Home Depot Project Loan.

What to watch out for

Trying to decide if a Home Depot Project Loan is the right fit for you? Consider these potential drawbacks:

  • Limited to Home Depot purchases. This might not be ideal if you plan on making large purchases from other stores for your home improvement project.
  • Long term is the default. You could end up paying nearly $17,000 in interest during the seven-year repayment period alone if you don’t make extra repayments on a $55,000 loan.
  • Only six months of spending. This loan isn’t ideal for long-term projects that could take over a year.

What do borrowers say about Home Depot Project Loans?

There isn’t much online about the Home Depot Project Loan — not surprising given how specific it is to a certain type of customer. A few commentaries on Reddit complained that the interest rate was too high, but cited a 14% APR rather than its current 7.99% APR. Another warned borrowers that they’d only be able to work with Home Depot-approved contractors if they took out the Project Loan.

But it wasn’t all negative. One customer said they picked this option over Lowes’ in-house financing because they liked the window of time they had to make purchases before starting on full repayments.

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Rates last updated December 16th, 2018

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Home Depot Project Loan requirements

To be eligible for a Home Depot Project Loan, you must meet the following requirements:

  • Have a credit score of at least 600.
  • Be over 18 years old, or over 19 in Alabama or Nebraska.
  • Be a US citizen or permanent resident.
  • Not live in Guam, Puerto Rico or the US Virgin Islands.

Home Depot also considers factors like your debt-to-income (DTI) ratio and overall personal financial situation. With most lenders, you can have a hard time qualifying if you have a DTI over 43%.

How do I apply?

You can apply for a Home Depot Project Loan either online or at your local store — the application works the same way no matter which option you choose. Follow these steps to get started online:

  1. Go to the Home Depot website and click Credit Services in the upper navigation bar.
  2. Scroll down to Project Loan and click Apply Now.
  3. Enter your requested loan amount and click Enter.
  4. Fill in your personal and contact information. Click Continue.
  5. Review your answers before submitting your application.
  6. Wait to receive your offer. Typically, this takes a few minutes.
  7. Follow the directions to accept your offer and activate your account.

Once approved, Home Depot issues a Project Loan credit card that you can use for online and in-store purchases.

I got the Home Depot Project Loan. Now what?

Once you have your Project Loan, you can start making purchases for your home improvement project. You’ll have to make interest-only repayments starting one month after getting approved.

After six months, you can no longer access your funds and are on the hook for full repayments. Since the Project Loan comes with such long terms, you might want to make extra repayments to save on interest. You can make repayments by mail, over the phone or online by logging into your account.

If you run into any issues, reach out to Home Depot’s loans department by calling 877-476-3860.

Home Depot Project Loan vs. Home Depot Consumer Credit Card

Not sure if you should go for the Home Depot Project Loan or Consumer Credit Card? Take a look at how they compare.

Home Depot Project Loan

  • Loan amounts: $2,500 to $55,000
  • Fixed APR: 7.99%
  • Terms: 7 years
  • How it works: Make interest-only repayments on all purchases over six months, then pay it off in installments over seven years.

A Home Depot Project Loan might be a better choice for large, ongoing projects. Loan limits and terms start slightly higher, and you have a window of six months to make your purchases.

Home Depot Consumer Credit Card

  • Credit limit: Varies
  • Fixed APR: 17.99% to 26.99%
  • Terms: Six months on most purchases, up to two years during promotions
  • How it works: Make a purchase of $250 or more any time and pay it off in installments over six months.

A Home Depot Consumer Credit Card might be a better choice if you’re a regular Home Depot customer and need help paying off larger purchases. You can pay any purchase over $250 in installments over six months or as long as two years during promotional periods.

Home Depot Project Loan vs. GreenSky Direct home improvement loan

You might have noticed that the application for a Home Depot Project Loan is actually through GreenSky. So what sets it apart from GreenSky Direct’s standard home improvement loan?

Home Depot Project Loan

  • Loan amounts: $2,500 to $55,000
  • Fixed APR: 7.99%
  • Terms: 7 years
  • Purchase period: 6 months
  • Eligibility: 600+ credit score, ages 18+ (19+ in Nebraska and Alabama), US citizen or permanent resident, not live in Guam, Puerto Rico or the US Virgin Islands

A Home Depot Project Loan might be a better option for borrowers with fair credit — that 7.99% APR could be one of the better deals around. It also offers financing for slightly lower amounts than GreenSky’s home improvement loan.

GreenSky Direct home improvement loan

  • Loan amounts: $3,500 to $55,000
  • Fixed APR: 4.99% to 23.99%
  • Terms: 3, 5 or 7 years
  • Purchase period: 6 months
  • Eligibility: 640+ credit score, ages 18+, US citizen or permanent resident

You might be able to get a better deal through GreenSky Direct if you have good credit — its rates start slightly lower than Home Depot. The multiple loan term options also might be useful if you want a shorter term and don’t want to crunch the numbers to find out how much you should prepay each month.

Bottom line

A Home Depot Project Loan could be the way to go if you have a big home improvement project on the horizon and plan on buying most of your supplies at Home Depot anyway. But watch out for that long loan term — you could end up paying a hefty amount in interest if you don’t pay off your loan early.

Check out our guide to home improvement loans to learn more about your financing options. Or read our personal loans page to compare more lenders.

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Anna Serio

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

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