If you spend a lot of money on home improvement supplies at Lowe’s, you may be wondering if the Lowe’s Advantage Card is worth signing up for. This card gives you 5% off all purchases made with your account in the store, after all. This generous discount could easily lead to thousands of dollars in savings over time depending on how much you spend in the store.
The Lowe’s Advantage card also comes with no annual fee, and you may also qualify for special financing offers. Keep reading this review to find out exactly how the Lowe’s Advantage Card works, who it’s good for, and why you may want to consider other cash-back or rewards credit cards instead.
Lowe’s Advantage Card: Supreme Savings for Lowe’s Enthusiasts
The biggest draw of the Lowe’s Advantage Card is the fact that it gives you 5% off purchases you make within the store. This may not lead to a ton of savings if you don’t spend a lot at Lowe’s, but imagine how much you could save if you shop at the store for construction materials to build a house, replace a roof, or put in a new deck. The more you spend on this card, the more your 5% savings will add up to over time.
While the Lowe’s Advantage Card doesn’t come with a traditional signup bonus, it does come with a $100 discount on your first in-store purchase of $600 or more made with the card through August 2, 2019. If you don’t plan to spend quite that much, you can qualify for a $30 discount off your first in-store purchase between $30 and $599.99 instead.
Other perks the card offers include special financing promotions that change over time. At the moment, for example, you may be able to qualify for 12 months of special financing on appliances, decking, and HVAC supplies and equipment. Keep in mind that special financing promotions may also come in the form of a targeted offer.
Where it Falls Flat
The biggest downside of the Lowe’s Advantage Card is the fact that you don’t really earn “rewards.” Instead, you get discounts on purchases made at Lowe’s stores. It’s always good to save money, but you have to keep in mind that you won’t be able to earn or accrue rewards points you can use for anything else.
This stands in stark contrast to regular rewards and cash-back credit cards, many of which let you earn points good for cash-back, statement credits, gift cards, merchandise, and more. Also note that many cash-back credit cards offer initial bonus rewards you can earn when you meet a minimum spending requirement within the first few months. The Lowe’s Advantage Card, on the other hand, only offers a $100 discount off a first large purchase of $600 or more (or $30 off a smaller purchase), which isn’t nearly as generous.
Another very important disadvantage of the Lowe’s Advantage Card is the fact that it’s not a Mastercard, Visa, Discover, or American Express. It’s a store card only, meaning you can only use it for purchases made in Lowe’s stores or at Lowes.com. If you were hoping to sign up for a rewards card that would let you earn points for all your regular spending and bills, the Lowe’s Advantage Card is a poor choice. (See also: 6 Ways Credit Cards Can Improve Your Life)
Finally, note that the standard APR for this card is 26.99%. This is an extremely high rate for a credit card, so you should think long and hard before you carry a balance from month to month. If you do know you need to carry a balance for the long haul, you’ll be a lot better off with a low interest credit card. Also note that some balance transfer credit cards give 0% APR on purchases for up to 15 months, and that these cards can be a good deal if you need to pay down a large purchase over time.
If you do rack up credit card debt on your Lowe’s Advantage Card, the interest you pay will dwarf your 5% “savings” in a hurry.
Why You May Want to Consider Another Rewards Card
While the Lowe’s Advantage Card will work fine within Lowe’s stores, remember that you can’t use it on regular spending and bills. To make the most of your spending, you may want to consider a credit card you can use anywhere you shop — as well as a card that will let you earn cash back or rewards for each dollar you spend. (See also: Rewards Credit Cards Overview: 5 Types of Cards and How They Work)
The Chase Freedom Unlimited® is a popular option since it offers a $200 bonus after you spend $500 on purchases in your first 3 months from account opening. You also earn an unlimited 1.5% cash back on all purchases, which can add up quickly when you use your card for regular spending and recurring bills. When it comes time to cash in your points, you can redeem them for statement credits, travel, gift cards, and more. This card also comes with no annual fee.
Another card with no annual fee to consider is the Capital One SavorOne Cash Rewards Credit Card. This card gives you an initial one-time $150 bonus when you sign up and spend $500 on purchases within three months of account opening. You also earn an unlimited 3% cash back on dining and entertainment, 2% back at grocery stores, and 1% back on all other purchases. Once again, you can redeem your rewards for cash back to use for anything you want.
The Bottom Line
The Lowe’s Advantage Card is a solid discount card that may work well for consumers who spend a ton of money at Lowe’s stores. However, it’s not a credit card that you can expect to use at a broad range of retailers worldwide.
You can pick up the Lowe’s Advantage Card if you want, but we also suggest getting a credit card you can use to earn rewards or cover emergency expenses. Make sure to consider the top cash-back credit cards as well as general rewards credit cards to find the right option for your needs and goals.
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