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Lowe’s Financing: 6 Ways to Pay for Your Home Project

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At Lowe’s you have various options for paying for your purchase. Among your Lowe’s financing options are a store-branded credit card and a lease-to-own program. But you might also use a personal loan, opt for a credit card with a low introductory APR or something else.

The is a noteworthy option for frequent Lowe’s shoppers. At checkout, you can choose from two benefits: get 5% off your eligible purchase or enroll in special financing. However, it does come with a high APR on purchases, so avoid carrying a balance month to month — or simply choose a card with a lower APR.

If you make a purchase of at least $299, you could qualify to receive six months of deferred-interest financing. Provided you pay off the balance in full within six months, you’ll avoid paying interest on your purchase. (If you don’t, you’ll be charged interest from the purchase date.) For purchases of $2,000 or more, you could qualify for an installment payment option, which offers a reduced APR for up to 84 months on your purchase.

Lowe’s also promotes limited-time offers. For example, Lowe’s credit card users may access appliance financing or air conditioning financing for 12 months instead of the typical six months on purchases of $299 or more. As is typical with store credit cards, new card applicants can also snag a sign-up bonus.

Here are the details about the :

  • Rates:
  • Annual fee:
  • Balance transfer fee: None
  • Credit requirements: Fair credit
  • Rewards: Choose 5% off eligible purchases or special financing at checkout

Who qualifies?

As with many store credit cards, it’s often easier to qualify for a than for a major general-use credit card. You’re likely to qualify with fair credit, particularly if you have a FICO Score of at least 620. Currently available through Synchrony Bank, you can apply for the card online or at a store location, and will need to provide your Social Security number or an Individual Taxpayer Identification Number (ITIN) along with your annual income.

Lowe’s lease-to-own program

If you need new appliances and can’t wait to make your in-store purchase with cash, a lease-to-own program could be a good alternative. Offered via Progressive Leasing, this kind of program allows you to take your purchase home after making an initial payment of at least $79 at checkout. You’ll then pay back the cost of the items over time without interest, with the maximum repayment period being 12 months.

A key benefit to this program is that you don’t need credit to qualify. However, you won’t own the items you take home until your debt is repaid, and the maximum purchase amount is $2,500. Further, while most Lowe’s items do qualify for leasing — think appliances, grills, patio furniture, power tools, smart home devices and more — you cannot lease perishable items or items attached to your property, like carpeting, water heaters, central AC units, etc.

This program isn’t available at all Lowe’s locations, and is not available at all in Minnesota, New Jersey, Vermont, Wisconsin or Wyoming.

Here are the details on the lease-to-own program:

  • Required initial payment: $79 plus tax
  • Maximum approval amount: $2,500
  • Lease term: 90 days and 12 months
  • Payment schedule: Weekly, biweekly or monthly

Who qualifies?

What’s great about this program is that there’s no credit needed. However, you will need to meet the following requirements:

  • Be at least 18 years old
  • Have a Social Security number or ITIN
  • Have a checking account and credit or debit card

Other ways to fund your Lowe’s purchase

Alternative Lowe’s financing options
0% intro APR
credit card
Personal loan Home equity loan Home equity line
of credit
What it is Promotional financing on
a major credit card
Unsecured loan based
on your credit
Fixed-payment loan
secured by your
home’s equity
Revolving line of credit
secured by your home’s
equity
APR 0% for a limited time 6%-36%, typically 5.76%
(average interest
rate, not APR)
5.51%
(average interest
rate, not APR)
Loan amount Varies, based on
credit limit you
qualify for
Varies Varies, based on
available equity in
your home
Varies, based on
available equity in
your home
Terms Usually between
6 and 18 months
Usually one to
5 years
Usually 5, 10 or 15
years
Often a draw period
of up to 10 years,
with up to 20 years
to repay
Who qualifies Often requires a
higher credit score,
usually good or
excellent credit
Fair credit may qualify, but the best rates are for good or better credit borrowers Must have sufficient
equity in the home you
own and the lender might
have additional credit
criteria
Must have sufficient
equity in the home you
own and the lender might
have additional credit
criteria

0% introductory APR credit card

If you have good or better credit, you could snag a new credit card with an introductory 0% APR credit card. These cards charge zero APR for a limited time, typically for up to 18 months. Comparatively, the comes with a typical six-month financing period. As with the Lowe’s card, you’ll be charged deferred interest on your zero-APR credit card if your balance is not paid off before the introductory period expires.

If you have strong credit, a credit card that offers rewards such as cash back or travel miles may be preferable over the Lowe’s credit card. That’s because you can earn rewards on every purchase you make, rather than qualify for a discount just at Lowe’s. Further, you may be able to snag a credit card with a lower purchase APR, which would make repayment more affordable if you end up carrying a balance.

Who qualifies?

To qualify, you will need to provide your annual income along with your Social Security number or ITIN so the credit card company can check your credit history. A 0% interest card traditionally is only available to consumers with a strong credit history.

Personal loan

Personal loans are typically unsecured, meaning they don’t require collateral, and come with fixed interest rates and fixed repayment terms of 12 to 60 months. They can be a strong option for good-credit borrowers who need $1,000 or more for a home improvement project or other need.

Although you can find personal loans for fair credit, interest rates can be high. Personal loan APRs typically range from 6% to 36%, depending on the lender, your credit and other factors. In December 2020, the average best-offered APR for LendingTree users with a 760 or higher credit score was 10.35%. For those with 640 to 679 credit scores, it was 23.70%.

For that reason, it’s important to comparison-shop lenders to see what kind of terms you qualify for. Most lenders allow you to prequalify for a loan without a hard credit check.

Who qualifies?

To qualify, you will need to provide proof of income as well as a Social Security number or ITIN so the lender can check your credit history. You’ll also need to disclose your income, whether you own property, and the purpose for your loan. Some lenders may request documentation such as a recent pay stub, as well.

Home equity loan

A home equity loan is a fixed-payment loan based on the value you have in your home. You can usually decide on a term of five, 10 or 15 years. Depending on the terms and your credit, you might be able to get a low rate. But the loan is secured by your home, so if you don’t make payments, you could end up losing your house.

A home equity loan could be a good choice if you are making a substantial purchase at Lowe’s and other stores and know how much money you need to cover costs. As a home equity loan is secured, you’ll likely see much lower interest rates than with a credit card or traditional personal loan. The interest on a home equity loan may also be tax-deductible, though the application process for a home equity loan can take weeks.

Who qualifies?

To qualify for a home equity loan, you will need substantial equity in your home. Your loan-to-value (LTV) ratio needs to be 85% or less, so you will retain a minimum of 15% equity in the home even after you receive the loan. In addition, you need a minimum credit score of 620, although some lenders require a higher credit score to qualify. Lenders also will examine how much debt you have in relation to your income to ensure you have the funds available to pay off the loan as agreed.

Home equity line of credit

Like a home equity loan, a home equity line of credit (HELOC) is based on the equity you’ve built up in your home. However, a HELOC operates as a revolving credit line, so you don’t need to borrow a set amount of money. You can also have years to tap your line of credit before the draw period expires, after which you’ll repay your debt on a fixed repayment schedule.

Because a HELOC is a secured financial product, you’ll likely qualify for a lower rate than through another financial product. That said, HELOCs can come with a variety of fees, and rates are variable, so they can rise over time just like a credit card’s.

Who qualifies?

Lenders will look at how much equity you have in your home to determine how much you qualify for in a home equity line of credit. They typically won’t approve a HELOC with less than a $10,000 credit limit. The lender also will review your income and credit history to determine how much you are approved for and the interest rate.

 

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