The Lowe’s Advantage Card, issued by Synchrony Bank, is a no-annual-fee credit card that may help you save on home improvement. You can only use this closed-loop card at Lowe’s where it offers a generous 5% discount on most items. (Closed-loop means you can only use it at Lowe’s).

There are also two special financing options available to cardholders: a deferred interest offer on purchases of $299 or more and installment financing on purchases of at least $2,000. You may find additional financing options available on a limited-time basis.

Lowe’s Advantage Card

  • Base rewards rate: None
  • Bonus rewards: 5% off at Lowe’s stores and
  • Sign-up bonus: 20% off when you open an account (up to $100 discount) through Jan. 31, 2023
  • Annual fee: $0
  • APR: 26.99%, variable

The Lowe’s Advantage Card’s potential to deliver high-value savings and choice of financing offers have secured this card a place on our list of the Best Store Cards of 2022.

Are the fees worth the rewards?

The Lowe’s card offers generous savings if you plan to shop big for a home improvement project. Let’s assume your home renovation project has a budget of $15,000. You spend it at Lowe’s with the store’s credit card and get 5% off the entire amount. In total, you’ll keep $750 in your pocket.

No other card from a major bank offers such high unlimited rewards or discounts at home improvement stores—including the Lowe’s Advantage Card’s competitor, the Home Depot Consumer Credit Card. The Home Depot Card provides no ongoing discounts and only one special financing option: Six months of deferred interest on purchases of $299 or more.

That said, if you’re looking for a 0% APR offer to pay off a purchase over time without paying interest, the Lowe’s Advantage Card isn’t the best option. With the card’s deferred interest offer, you get six months without interest charges. If you don’t pay off the balance in full during that period, you’ll be hit with the standard APR of 26.99% which will apply to the full purchase amount. 

Installment financing comes with 84 fixed monthly payments at 7.99% APR, which can get expensive over such a long term.

If you’re looking to finance your home project at better terms, look into getting a credit card with a 0% APR introductory offer. Some of the best 0% APR cards currently offer up to 21 months of no interest. 

Others even earn rewards: for instance, the ​​Wells Fargo Active Cash, our top pick for the Best Cash Back Credit Cards of 2022, earns 2% back on all purchases and provides 15 months of no interest on new purchases. Once the intro zero-interest offer expires, the card’s regular ongoing APR kicks in and applies to the remaining balance.

Card details you might miss

At Buy Side from WSJ, we judge store credit cards mainly by the potential value of rewards and savings they can offer. But there are generally other details to consider before getting a card, such as additional perks and benefits it comes with.

The Lowe’s Advantage Card, however, is a bare-bones store credit card and doesn’t have much to offer besides the 5% discount and special financing options. 

It’s still a good idea to ensure you know the terms of the benefits this card does offer. While the 5% discount applies to most items at Lowe’s, there are exceptions. For example, you won’t be able to use the discount on gift cards, merchandise from select premium brands, delivery and assembly fees, and more. 

Most important, you can’t stack this discount on top of most other offers—including financing. If you want to both save on your purchase and pay it off over time, the Lowe’s Advantage Card might not be the way to go.

Who benefits most from this card?

If you frequently spend at home improvement stores or are planning a home renovation, the Lowe’s Advantage Card can be an excellent choice. The 5% discount on most items at Lowe’s is hard to beat and can save you hundreds of dollars on expensive projects.

If you don’t like carrying multiple cards, look into open-loop store cards. For instance, if you have a Prime membership, the Amazon Prime Rewards Visa Signature might be a good alternative. While Amazon doesn’t have the same selection, you can still find many items you may need for your project, from tools to furniture to even paint. The Amazon Prime Card earns 5% back at Amazon and Whole Foods and 2% back at restaurants, gas stations, and drugstores, making it a solid cash back card.

Additionally, you might want to look into a different card if you’re hoping to pay for your purchase over time and avoid interest without sacrificing savings. For example, for smaller projects, you can use the Bank of America® Customized Cash Rewards credit card. This cash back card offers 3% back on a category of your choice (options include home improvement and furnishings) and 2% back on grocery stores and wholesale clubs. There’s a quarterly cap of $2,500 in combined spending in these categories. You also get 0% intro APR on purchases for 18 months, after which the ongoing APR kicks in.

The advice, recommendations or rankings expressed in this article are those of the Buy Side from WSJ editorial team, and have not been reviewed or endorsed by our commercial partners.