The best Home Depot cards: Top credit options for businesses compared

Since most charge cards require businesses to pay balances off in full every month, many allow businesses to make purchases without predetermined credit limits. However, the Pro Xtra Card works more like a credit card, as it gives cardholders the option of either making low monthly payments or paying the credit balance in full every month. 

However, cardholders must be mindful of this card's annual percentage rates (APR) on purchases:

• The charge card carries an APR of 21.99% (15% for a resident of Georgia or North Carolina)
• Penalty APR on default payments has an APR of 26.66%; late fees up to $40
• For more details, see rates and fees

The Commercial Account Card works more like a charge card. The card has no set spending limits and no minimum monthly payments. However, these advantages come with one crucial stipulation: credit account balances must be paid in full before the end of each billing cycle. If not, cardholders are subject to late-payment fees and high-penalty APR. Details to keep in mind include:

• Cardholders have two payment options: 30-day term or 60-day term
• Late payment fees may be up to $35, depending on the balance amount
• For more details, see rates and fees

Now that we have looked briefly at the main differences between the Home Depot's best credit cards for businesses, let's look at some of the advantages and benefits that are found among both options. 

Fees and interest

The payment interest rates were discussed above, but it is important to note that neither credit option has an annual fee. Home Depot offers 30-day or 60-day payment terms. Business cardholders who qualify will enjoy the benefit of having 60 days without interest on purchases. 
 
Qualifying factors rely largely on creditworthiness. Sometimes those without the necessary credit history to establish a professional account will have to give a personal guarantee to qualify. 
 
Of course, the advantage of 60-days no interest is of greater importance to those with the Pro Xtra Card (Commercial Revolving Charge), since its minimum payment option is subject to interest charges.

Employee purchasing cards

Each commercial credit option allows additional cards for employee purchasing. For example, the Pro Xtra offers authorized user cards (up to four) for employees to make purchases using the commercial account. The Commercial Account card allows business owners to set spending limits and apply for up to four buyer ID cards to allow employees to make purchases. 

One year on returns

Each credit option gives card members an extended window for making returns -- up to one year. This return policy is a significant benefit considering the limited time window for non-member purchase returns is 90 days after the purchase date. 

Itemized statements and purchase tracking

Itemized billing statements are available to cardmembers, allowing them to track purchasing by purchase order numbers, job names, or job numbers. 

Online account management 

Both of the commercial Home Depot credit options give card members access to online account features. This allows customers to view, manage, and pay their accounts online at their convenience without paying in-store. Furthermore, commercial cardmembers can pay by invoice, giving them the flexibility to make payments on itemized purchases. Members can also:

• Export and sync order history to Quickbooks to help manage purchases
• Create quotes to lock pricing in for up to seven days

Fuel-saving benefits

Another benefit that comes with both commercial credit options is a fuel rewards program, but commercial card members must enroll separately; card members are not automatically enrolled in the program. Benefits and fuel savings are based on qualifying purchase amounts.

For every $100 spent with a commercial card at a Home Depot store, members save 10¢ per gallon, so:

• $1,000 saves $1 / gallon
• $2,000 saves $2 / gallon
• $3,000 saves $3 / gallon
• $4,000 saves $4 / gallon

There is a limit of 20 gallons of fuel per purchase per vehicle, and use is restricted to participating gas stations. 

Membership in Home Depot's professional loyalty program, Pro Xtra, is perhaps the most significant benefit for cardholders. Benefits include:

• Volume pricing: Members can save money on qualifying large purchases of up to $1,500 or more. 
• Paint rewards: Members can save up to 20% on paints, stains, and primers purchased with their rewards credit card, in-store or online. 
• Personalized offers and bonuses: Enrolled cardholders will receive offers on products and services specific to them via email, direct mail, or mobile app. 
• Pro Xtra Virtual ID: Members can track their spending with their virtual IDs, helping them earn perks on purchases to be used in the future. The mobile app allows members to authorize employee purchases through text. 
• Delivery options: Loyalty members also get numerous delivery options: free in-store pickup in hours, free 2-day delivery, and scheduled delivery to job sites, to name a few. 

There are two disadvantages to consider with the commercial Home Depot credit options. First, unlike some retail credit card options, the credit cards can only be used for Home Depot in-store or online purchases. Second, there are no cashback rewards on purchases that are common in many other credit options. 

There are many reasons businesses choose to use retail and in-store credit cards, including keeping spending of personal funds to a minimum. One advantage, especially for small businesses and startups, is building a business credit history. Establishing and maintaining a business credit history gives businesses more financing options. 

After a business bank account opening, many new cardholders opt for retail credit options to help boost their credit profile with the major credit bureaus. 
 
Given the two commercial Home Depot credit options discussed, the choice comes down to business needs. Although hardware and home improvement stores are popular among consumers, they are often industry-specific for businesses. 
 
A small business looking to make some building improvements or a small construction company may enjoy the numerous benefits of commercial Home Depot credit. On the other hand, a small tech startup navigating the ever-growing e-commerce economy may not have the need. 
 
In terms of credit options, both cards boast many of the same benefits. However, a business looking to finance purchases with monthly payment options and longer-term windows would do well to choose the Pro Xtra Card over the Commercial Account Card. 

Currently, the process for applying for any of the Home Depot credit cards is online, though it can be done in-store. When applying, you will be redirected to a CitiBank application page. The process is fairly simple. Home Depot does not list credit requirements, but the cards are best suited for those who have fair credit scores or better. Those without a substantial credit history can be subject to personal guarantees on commercial accounts. 

A personal guarantee is an individual's, rather than a business entity's, legal agreement to repay credit issued to a business. If credit is not paid back in full according to the terms, the individual is responsible for the debt. 

No. Regardless of the card issuer, all of the Home Depot credit options can only be used for in-store or online purchasing with Home Depot.