My Home Depot Credit Card Now Has A 25.99% APR

Reader Warren says that Home Depot raised his APR to 25.99% — causing him to cancel his account. Yikes.

Warren says:

Home Depot consumer card interest rate is now at 25.99%. This is not the default rate – the rate you pay if you miss payments – this is the rate they say they charge to their best customers. They said “interest rates have gone up” really – especially ours. I informed them they have lost a customer. Will pay off my card and shop elsewhere.

We took a look at Home Depot’s financing offers and sure enough:

Rates as low as 17.99% APR; Actual rates from 17.99% – 26.99% APR; Fewer than half of applicants will qualify for a rate of less than 25.99% APR. Default APR 29.99%b (rates may vary). Minimum FINANCE CHARGE: $2.

The card also comes with a No Payments, No Interest for 6 Months offer on items over $299 — which may lead you to believe that the interest rate on the card really isn’t important. The fact is, these promotions can backfire — leading to staggering interest payments.

If, for example, you were to fail to pay off the entire balance before the 6-month promotion ended or if you made a late payment — all of the interest that had been accruing would come due.

FINANCE CHARGES will be added to your Account for the entire promotional period if qualifying purchases (including premiums for optional credit insurance) are not paid in full before the end of the promotional period or if you fail to make any required payment on your Account when due or make a payment to us that is not honored.

Something to keep in mind.

The Home Depot Consumer Credit Card [Home Depot]