Lowe's Advantage Card Review: Simple Perks and Solid Value

If you do much shopping at Lowe's, then the Lowe's Advantage Card could be a serious money saver. Each time you shop with this store credit card, you can get a discount or take advantage of special financing plans on eligible purchases. Read our full Lowe's Advantage Card review for all the details on its good and bad points.

This credit card is a good fit for: Home improvement enthusiasts who shop at Lowe's frequently and want to get discounts or special financing plans.

Top perks

You get a few standout benefits with a Lowe's credit card.

20% off first purchase

When you open and use a new Lowe's Advantage Card, you get 20% off first purchase, up to a maximum discount of $100. For accounts opened in store, you must ask the cashier to apply the discount at the time of your purchase. For accounts opened online, you'll receive a one-time coupon/promotional code.

It's not a huge welcome offer, and it can't be combined with this card's 5% off discount, either. But it's a solid deal from a store credit card, especially if you use it on a $500 purchase to maximize your savings. This introductory offer currently runs through Jan. 31, 2024, but Lowe's seems to renew it regularly.

5% off purchases

The Lowe's Advantage Card gets you 5% off all eligible in-store and online purchases. Note that if a purchase also qualifies for one of the special financing offers available through a Lowe's credit card, you must choose either the 5% discount or the financing plan. These offers can't be combined. A 5% discount on every eligible Lowe's purchase is a great deal if you shop there often.

Financing plans

The Lowe's Advantage Card has two available financing plans:

• Special financing: No interest on purchases of at least $299 when paid in full within six months
• Reduced APR financing: 84 fixed monthly payments on purchases of at least $2,000 at a reduced APR of 9.99%

In addition, Lowe's periodically has limited-time special financing offers. For example, you could see an offer for no interest on a specific type of product, such as appliances, if the purchase is at least $299 and you pay in full within 12 months.

While these special financing offers can be useful, paying off the balance on time is a must. These are deferred-interest offers, which means if you don't pay off the balance within the allotted time, you're charged interest going back to the purchase date.

LEARN MORE: What Is Deferred Interest?

No annual fee

Store cards are usually no annual fee cards, and that's the case with the Lowe's Advantage Card. It's an important perk, because it means you can save money using your Lowe's credit card and it won't cost you anything.

What could be improved

Before you apply for a Lowe's credit card, you should know about its drawbacks.

Deferred-interest financing

As mentioned earlier, Lowe's special financing plans have deferred interest. If you haven't heard of this, it means interest charges are only deferred until the end of the introductory period. You must pay off the balance in full by then, or you'll be charged all the interest going back to the purchase date.

A deferred-interest offer can still be a good deal, assuming you pay in full by the end of the introductory period. Just keep in mind that minimum payments may not be enough. If you want a more flexible financing option, check out 0% intro APR credit cards. These offer waived interest, so even if you don't pay off purchases within the intro period, you only get charged interest on your remaining balance.

READ MORE: Best 0% APR Credit Cards

Lackluster introductory discount

A 20% discount is reasonable for a store credit card, but it could be better. In particular, it'd be nice to see Lowe's get rid of or at least raise the $100 limit on the discount. That bonus cap means the value of this introductory offer pales in comparison to many of the best sign-up bonuses.

Only works at Lowe's

The Lowe's Advantage Card is a closed-loop store card. You can only use it to pay for your purchases at Lowe's, not anywhere else. Because of that, you'll need at least one other credit card to cover your non-Lowe's expenses. Check out more of our credit card reviews to find a card to use instead of or in addition to a Lowe's card.

No extra benefits

When it comes to features, the Lowe's Advantage Card is bare bones compared to most other credit cards. The purchase discounts and financing plans are its only perks. You won't get any extra benefits that are popular with store credit cards, such as free shipping, an extended return window, purchase protection, or exclusive sales.

The Lowe's Advantage Card is aimed at consumers with fair credit or better, and a FICO® Score of at least 620 is recommended. Keep in mind that Lowe's will base its decision on more than just your credit score. Card issuers weigh a variety of factors to determine whether to approve or deny credit card applications. But one of the nice things about store credit cards is that they often have more lenient approval requirements than other cards.

SEE MORE: Best Store Credit Cards

You spend at least $500 per year at Lowe's and you either want to get discounts or finance your more expensive purchases.

Since the benefits of the Lowe's Advantage Card are so simple, it's also easy to figure out if this is a good credit card for you. A 5% discount at Lowe's is more than you'll get from almost any other rewards credit cards. The card's financing plans are also competitive. If you're a DIYer or just like to make major home purchases at Lowe's, a Lowe's credit card is sure to save you some cash.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.