Home Depot Loan Denied – 5 Reasons You Should Know

An Overview of Home Depot Loans

The Home Depot Company offers lucrative financing options to its customers. Customers buying tools, equipment, and home improvement items can use financing options offered by Home Depot.

It is a convenient way for customers as they do not need to apply for third-party financing. Home Depot offers financing through its flagship consumer and project credit cards with varying loan terms.

Home Depot offers its financing services through GreenSky. Customers can apply for GreenSky home improvement loans separately as well.

The loan application process is easy and customers can apply online or by visiting a store. The application approval criteria, interest rates, and other requirements will vary on various factors (discussed below).

Home Depot Credit Card

The Home Depot consumer credit card is offered through

Citi bank. However, unlike other credit cards, they can only be used for shopping at the Home Depot stores and web portals.

This credit card offers 0% interest rates if consumers repay the full amount within six months. However, you’ll have to pay accrued interest if you have any remaining balance after the promotional period.

Here are a few key points to remember:

  • 0% interest if repaid within six months of the promotional period on purchases of $299 or more.
  • Variable APR for standard repayment terms from 17.99-26.99%.
  • Late Payment fee of $40.
  • Up to 24-months of repayment terms depending on the credit amount.
  • Zero annual fees.

The Home Depot combines different options for consumer credit card users with various promotions throughout the year.

Home Depot Project Loan Credit Card

The Home Depot project loan is for consumers looking for bigger home improvements. This loan is up to $55,000 for your home renovation and improvement expenses.

The project loan credit card can also be used only at the Home Depot stores for shopping. Customers have up to six months to fully utilize their approved loan amount.

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The project loan comes with different loan terms starting from 66-months to 114-months with APRs ranging from 7.42%-19.99%.

Here are a few key points to remember:

  • Comes with a borrowing limit of $55,000
  • Zero annual fee
  • Loan terms of 66-, 78-, 90-, and 114-months
  • Fixed APRs of 7.42%, 12.86%, 16.24%, and 19.96% respectively for terms mentioned above.
  • The loan amount can only be spent at Home Depot Stores.
  • The approved loan amount must be utilized within six months of approval.

There is no penalty for prepayment on a Home Depot Project Loan.

Home Depot Credit Card Application Process

Customers can apply online or at the Home Depot stores for their preferred credit card. The Home Depot credit center reviews applications and handles the loan process.

The information and documents required are:

  • Personal information like name, date of birth, etc.
  • Contact details including phone number, email, and home address.
  • Social security number
  • Your gross income details including employer contact number.

There is no prequalification phase at the Home Depot financing services. It means there will be a hard credit inquiry when you apply for a credit card the Home Depot.

The approval criteria are not officially mentioned by the Home Depot.

However, you can expect to get approved if you have:

  • A credit score of 640 or above
  • A debt-to-income ratio of 50% or less
  • Stable gross income resources
  • No bankruptcy or default in your credit history
  • You are 18 years old and a US citizen
  • You have an established credit history

The actual requirements and the approval process will depend on many factors including your income, credit profile, and previous history.

Home Depot Loan Denied – 5 Reasons You Should Know

Even if you completed all the information and documentation requirements, there is no guarantee that your Home Depot project loan will be approved.

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Here are the top 5 reasons why your Home Depot Project loan application may get rejected.

Bad Credit Score

The Home Depot and its financing partner will assess your credit score like any other lender. There is no mention of the minimum credit score requirement officially though.

However, if your credit score is bad, chances are your loan application will be denied. If your other assessment metrics are critical, then you’ll need an even higher credit score to succeed with a loan application.

Red Flags on Your Credit History

Lenders evaluate your credit history to assess your track record. They are always keener to know how you repaid your previous loans.

If your credit history shows late monthly payments, delayed repayments, default, or bankruptcies, your chances of loan approval are slim.

Any of these red flags mean your Home Depot project loan will be denied.

Your Debt-to-Income is High

The debt-to-income ratio shows how much of your gross income is going towards your monthly loan payments. It means if this ratio is higher, you have a little cushion to serve a new loan. Like any other lender, Home Depot will also be interested to see a lower debt-to-income ratio on your credit profile.

Unstable Income Resources

A major reason for any loan rejection is that your income resources are unstable. It means you do not have a secured or permanent income source.

If your credit profile shows fluctuating income levels, lenders will be reluctant to approve your loan application.

Similarly, when your credit profile indicators are riskier, lenders charge you higher interest rates as compensation for higher risks.

Wrongly Filed Application

It may sound too obvious but you may have provided the wrong information on your loan application which could result in a rejection.

For example, you may want to enter the details of a cosigner and get it wrong. Similarly, any omission or errors on your loan applications may result in a loan rejection as well.

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How to Improve your Approval Chances at Home Depot?

You can reapply at the Home Depot for a new project loan or a consumer credit card at any time. However, it will affect your credit score as it incurs a hard pull and decreases your credit score.

Here are a few tips for you to improve your loan approval chances at Home Depot:

  • Plan to improve your credit score
  • Evaluate your credit report for any errors or omissions
  • Improve your gross income
  • Lower your debt-to-income ratio by repaying a loan
  • Do not reapply until your credit history shows positive signs
  • Apply with a cosigner with a good credit score and a clean credit history

Alternatives to Home Depot Project Loan

Reapplying at the Home Depot for a project loan can cost your credit score points. You can consider a few alternatives to the consumer credit card and the project loan.

Home Improvement Loans

Consider any other home improvement loan offered by a commercial bank, credit union, or private lender. Certain lenders accept loan applications with different approval criteria.

Home Line of Credit/Line of Equity

You can take a more conventional approach to finance your home improvements by applying for a home line of credit or line of equity depending on your needs.

Personal Loan

If you have built home equity, you can use it as a pledge to secure a personal loan. You can use this approved personal loan for any purpose including your home improvement requirements.


Finally, if your current financials do not allow for a new loan, you can refinance one of your existing loans. You can refinance a personal loan, a mortgage, or even credit card loans to create a cushion for your home improvement purchases.