Home Depot (Credit) Cards - which one??

[Ludmila M.]

Hi all,

I am confused with all the options Home Depot offers. As a disclaimer, I did read through past posts on this same topic, and still not sure what I should sign up for. What would you recommend for a rehabber?  

 A. Consumer Credit Card

 B. Project Loan Card

 C. Commercial Revolving Charge

 D. Commercial Account

Also, which one(s) would work better for purchases in personal name vs LLC?

Thank you!

Ludmila

[Roy N.]

Originally posted by @Mike F.:

 I'm in  a cash positive position, I don't need other people's money nor rob peter to pay paul, whether I pay for it up front or in 18 months it's still an expense to me and with abundant cash there is no benefit to me carrying balances so getting another 2% back is just free money on top of the cash already coming in.

Like I said, in my post if you aren't paying off your balance each month I can't help you. If you need other people's money then a 2% cash back card isn't the answer.

Let's step down of the moral soap box for a second and not make so many assumption about the person you are addressing.

Many of us, like yourself, are in cash positive position and do not "need" other peoples money, but that does not mean you should not use other peoples money if the cost to do so is less than the opportunity costs to use your own capital.    

The case at hand, Home Depot's Consumer card with its 12-24 month payment plan at 0% interest, is "cheaper" money than the opportunity cost of using our own capital - which while parked is earning between a 5.5 - 6.5% return.  In addition, I'm paying for Home Depot's financing programme whether I use it or not ... ie. I do not get any better pricing if I pay upfront versus use their financing.

In my earlier post I indicated we would may be purchasing 40+ appliances (perhaps as many as 80) at some point in the next 12 months.   Sure, we could write a cheque for the purchase, or put that 30K on our credit card and earn $900.00 cash-back.  Or, we could financing the entire purchase at 0% over 18 - 24 months out of cash-flow and leave that 30K to earn 2500 - 3900 over the same period.