Home Depot has become the go-to store for customers working on renovation projects, offering a variety of tools, supplies, as well as project loans to fund some of the expenses.
So if you need a loan for an upcoming renovation project, you may be wondering – what are Home Depot’s project loans, and how can you get one? Here is what I’ve found out!
Home Depot Project Loan In 2022
A Home Depot project loan is a financial loan of up to $55,000 from Home Depot as of 2022 to spend in stores or for renovation-related expenses. The project loan has four tiers, with the Term and APR for each depending on the customer’s credit approval.
If you want to learn more about how to apply for a Home Depot project loan, what are the terms and APRs for each tier, and much more, keep on reading!
What Is A Home Depot Project Loan?
A Home Depot project loan is a good option for renovating your home or business if you cannot afford to pay the costs outright.
The project loan has fixed monthly payments, with the flexibility to pay your project loan off early.
Note that there is no annual fee with the Home Depot project loan, and it can be used to purchase all your project materials.
How Much Is A Home Depot Project Loan?
A Home Depot project loan allows you to borrow a maximum of $55,000 with a maximum of seven years to pay off your loan through monthly installments.
Depending on your credit eligibility, you can choose to borrow the Home Depot project loan for a number of months with varying APR:
- For 66 months, 7.42% APR
- For 78 months, 12.86% APR
- For 90 months, 16.24% APR
- For 114 months, 19.96% APR
Keep in mind that the APR amount for the Home Depot project loan is fixed for the duration of the loan, and does not require any down payment.
How Much Do I Pay Back With A Home Depot Project Loan?
Depending on the amount you borrow for your Home Depot project loan, you will pay back a portion of the loan monthly.
Home Depot states that the project loan repayment will not be more than $20 per $1000 spent.
Here is a breakdown of the amount you will have to pay every month, depending on how much you’ve loaned:
- Borrow $1000, pay back $20 per month
- Borrow $5000, pay back $100 per month
- Borrow $10,000, pay back $200 per month
- Borrow $25,000, pay back $500 per month
- Borrow $35,000, pay back $700 per month
- Borrow $55,000, pay back $1100 per month
How Do I Apply For A Home Depot Project Loan?
If you wish to apply for a Home Depot project loan, you can go online to the Home Depot Credit Center and apply by following the steps.
Note that it is a similar process to applying for other credit cards available at Home Depot.
To apply for a Home Depot project loan, you will require personal information such as your name and address, and your credit information.
You can apply for a Home Depot project loan with a co-applicant, who will also be required to submit their personal information.
What Credit Score Do I Need For A Home Depot Project Loan?
For a Home Depot project loan, it is required that you have a credit score of at least 620.
Once you have submitted your information, Home Depot will be able to inform you if you are eligible for a project loan.
How Long Do I Have To Use My Home Depot Project Loan?
You will have six months to purchase everything you require for your project from Home Depot using your project loan.
The spending period for your Home Depot project loan begins once you have been approved for the loan.
Can You Pay Contractors With The Home Depot Project Loan?
The Home Depot project loan can only be used at Home Depot stores and online at HomeDepot.com.
Because of this restriction, you cannot use the Home Depot project loan to pay contractors.
Additionally, you also cannot earn rewards or benefits at Home Depot by using the card.
How Do I Make Payments For My Home Depot Project Loan?
To pay off your Home Depot project loan, you can make payments either by mail, phone, or online.
To pay by mail, you can send your checks to the Home Depot Loan Services at this address: Dept #3025, The Home Depot, P.O. Box 2153, Birmingham, Alabama, 35287-3025.
Alternatively, you can pay your Home Depot project loan by calling 877-476-3860 and following the instructions provided by the associate.
You can also pay your Home Depot project loan online as well as manage your account at: thdloan.com.
Can I Pay Off A Home Depot Project Loan Early?
Home Depot allows customers to pay off their project loans earlier than the standard schedule.
Note that you will not have a prepayment penalty for paying off your project loan early at Home Depot.
Is It Hard To Get Approved For A Home Depot Project Loan?
It has been reported that to be approved for the Home Depot project loan, applicants do require good credit and a score of 620.
However, it has been reported online that having good credit does not necessarily mean you will be approved for a Home Depot project loan.
When you apply, Home Depot will be able to give you a good indicator of whether you will be eligible for the loan or not.
What Should I Do If I Am Denied A Home Depot Project Loan?
If you are denied a Home Depot project loan, you can contact Home Depot credit services to learn why you were denied and receive advice on how to proceed.
Using Home Depot loyalty schemes, or joining other Home Depot financing options such as the Consumer Credit Card can also be a good option for financing renovation projects.
Alternatively, competitors such as Lowe’s also offer similar credit and financing options for renovation projects.
Visiting the customer services desk at Home Depot, Lowe’s, or similar retailers may give you an indication of how to best approach applying for a project loan.
Conclusion: Home Depot Project Loan
The project loan offered by Home Depot is a great option for financing large renovation projects for the home.
While it requires a good credit score, it has monthly payment options and no early repayment penalty which allows for easy repayment.
You can pay your Home Depot project loan either online, or by mail or telephone, depending on your preference. The interest rate of your project loan from Home Depot varies depending on the amount you borrow, but is fixed for the duration of your loan.