Home Depot Project Loans (How It Works, Payment Methods, Time Frames, etc.)
Home Depot has become the store of choice for customers working on renovation projects, offering a variety of tools and supplies as well as project loans to help finance some of the cost.
So if you need a loan for an upcoming renovation project, you might be wondering – what is a Home Depot project loan and how do you get one? Here’s what I found!
Home Depot Project Loan
A Home Depot Project Loan is a financial loan from Home Depot of up to $55,000 for store purchases or renovation-related expenses. Project loans are divided into four levels, and the term and annual interest rate of each level depend on the customer’s credit approval.
If you want to learn more about how to apply for a Home Depot project loan, the terms and APR for each tier, keep reading!
What is a Home Depot Project Loan?
A Home Depot Project Loan is a great option for renovating your home or business if you can’t afford to pay directly.
Project loans have a fixed monthly repayment amount, and you have the flexibility to pay off project loans early.
Note that Home Depot project loans have no annual fee and can be used to purchase all of your project materials.
How much is a Home Depot Project loan?
A Home Depot project loan allows you to borrow up to $55,000 for a term of up to seven years and pay off the loan in monthly installments.
Depending on your credit eligibility, you can choose to take out a Home Depot Program Loan for several months at various APRs:
- 66 months, 7.42% p.a.
- 78 months at 12.86% p.a.
- 90 months at 16.24% APR
- 114 months, 19.96% APR
Remember, the APR amount for a Home Depot program loan is fixed for the life of the loan and does not require any down payment.
How Much Can I Pay Back With a Home Depot Project Loan?
Based on the amount you borrowed for the Home Depot Program Loan, you will pay back a portion of the loan each month.
Loan repayments on the program will not exceed $20 for every $1,000 spent, Home Depot said.
Here’s a breakdown of the amounts you’ll have to pay each month, depending on the amount of your loan:
- Borrow $1,000, repay $20 a month
- Borrow $5,000, repay $100 a month
- Borrow $10,000 with monthly repayments of $200
- Borrow $25,000 with monthly payments of $500
- Borrow $35,000 with monthly payments of $700
- Borrow $55,000 with monthly repayments of $1100
How do I apply for a Home Depot program loan?
If you would like to apply for a Home Depot Project Loan, you can visit the Home Depot Credit Center online and follow the steps below to apply.
Note that this is a similar process to applying for other credit cards offered by Home Depot.
To apply for a Home Depot program loan, you will need to provide personal information such as your name, address and credit information.
You can apply for a Home Depot program loan with a co-applicant who must also submit personal information.
What credit score do I need for a Home Depot Project Loan?
For Home Depot project loans, your credit score is required to be at least 620.
After you submit your information, Home Depot will be able to notify you if you qualify for a project loan.
How long do I have to use the Home Depot program loan?
You’ll have six months to purchase everything you need for your project from Home Depot with a project loan.
Once you are approved for a loan, the disbursement period for your Home Depot project loan begins.
Can you pay a contractor for a Home Depot project loan?
Home Depot program loans are only available at Home Depot stores and online at HomeDepot.com.
Because of this limitation, you cannot use Home Depot project loans to pay contractors.
Also, you can’t use the card to get rewards or benefits at Home Depot.
How do I pay for a Home Depot program loan?
To pay off a Home Depot program loan, you can pay by mail, phone, or online.
To pay by mail, you can mail a check to Home Depot Loan Services at the following address: Dept #3025, The Home Depot, PO Box 2153, Birmingham, Alabama, 35287-3025.
Alternatively, you can call 877-476-3860 and follow the instructions provided by the staff to pay the Home Depot program loan.
You can also pay Home Depot project loans and manage your account online at thdloan.com.
Can I pay off my Home Depot program loan early?
Home Depot allows customers to pay off project loans earlier than the standard schedule.
Note that you will not incur 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?
There is news that the Home Depot project loan is approved; applicants do need good credit and 620 points.
However, there are reports online that having good credit doesn’t necessarily mean you’ll be approved for a Home Depot program loan.
When you apply, Home Depot can give a good indication of whether you qualify for a loan.
What should I do if my Home Depot project loan is rejected?
If you have been rejected for a Home Depot Program loan, you can contact Home Depot Credit Services to find out why you were rejected and to get advice on how to proceed.
Using the Home Depot loyalty program or joining other Home Depot financing options, such as consumer credit cards, are also good options for financing a renovation project.
Alternatively, competitors such as Lowe’s offer similar credit and financing options for remodeling projects.
A visit to the customer service desk of Home Depot, Lowe’s, or a similar retailer may point you to the best way to apply for a project loan.
If you want to know more about Home Depot credit services, you can also check out our related posts on Home Depot Pro Xtra, Home Depot Improver Card, Does Home Depot have Layaway.
in conclusion
Project loans from Home Depot are an excellent option for financing major home improvement projects.
While it requires a good credit score, it has monthly payment options and no prepayment penalties for easy repayment.
You can pay Home Depot program loans online, by mail, or by phone, depending on your preference. Home Depot’s project loan rates are based on the amount you borrow, but are fixed for the term of your loan.
