If you‘re planning a big home improvement project, the costs can add up fast. Perhaps you need energy-efficient appliances, new power tools, or stylish light fixtures to refresh your space. Charging the full price to a credit card or draining your savings usually isn‘t the smartest move.
That‘s where "buy now, pay later" (BNPL) services come in. Popularized by fintechs like Afterpay, Affirm, Klarna, and QuadPay, these instant financing options let you split a purchase into smaller installments, often interest-free. Afterpay, for instance, divides your total into four equal payments due every two weeks.
It‘s an enticing concept for making big-ticket buys feel more manageable. But can savvy shoppers take advantage of BNPL at home improvement giant Lowe‘s? Let‘s break down your options.
The Rise of BNPL
First, some context on the BNPL boom. These services have surged in popularity, especially among younger consumers. Consider these stats:
- BNPL purchases in the U.S. grew 230% since the start of 2020, reaching $20.8 billion, per Accenture.
- Over half of Gen Z and Millennials have used a BNPL service, reports The Ascent.
- More than 45 million U.S. shoppers used BNPL in 2021, up 81% from 2020, projects eMarketer.
- BNPL orders are projected to account for over $76 billion in U.S. e-commerce sales by 2025, or nearly 5% of total retail e-commerce, per Insider Intelligence.
The convenience and flexibility of BNPL has obvious appeal. Spreading out payments can make pricey purchases feel less daunting, spurring shoppers to spend more and buy sooner. In fact, 65% of BNPL users say they spend 10-40% more when using the services, per LendingTree.
But this debt-fueled spending can be a slippery slope. A Credit Karma study found that 34% of BNPL users fell behind on one or more payments, potentially damaging their credit and racking up late fees. So it‘s a double-edged sword.
Does Lowe‘s Accept Afterpay or Other BNPL Options?
Now, the million-dollar question: Can you finance your Lowe‘s purchases with BNPL? In a word, no.
Lowe‘s does not currently accept Afterpay or any other third-party BNPL service, online or at its 1,700+ U.S. stores. While competitors like The Home Depot have hopped on the Afterpay bandwagon, Lowe‘s is notably absent from the BNPL party.
The reasons aren‘t entirely clear. Lowe‘s may prefer promoting its own credit cards and financing plans to drive customer loyalty and avoid BNPL fees, which can range from 2-8% of the purchase price. There could also be concerns about BNPL leading to more defaults and returns.
Demographics may also play a role. Lowe‘s shoppers tend to skew older and more affluent than the typical BNPL user, with a median age of 45 and household income of $80,000+, per data from Numerator. Lowe‘s may not feel pressure to cater to younger, credit-averse consumers yet.
Still, the decision puts Lowe‘s at a competitive disadvantage as BNPL adoption grows. Home improvement lends itself well to installment payments, with high price points and long-term payoffs. Letting customers split up costs could boost Lowe‘s average order value and conversion rates.
What Financing Does Lowe‘s Offer?
While Afterpay isn‘t an option, Lowe‘s does offer several ways to pay over time, each with their own terms and caveats:
Lowe‘s Advantage Card
Frequent Lowe‘s shoppers can apply for the Lowe‘s Advantage Card, issued by Synchrony Bank. Key perks include:
- 5% off eligible purchases, or special financing for 6-84 months with minimum spend
- No annual fee
- $0 liability on unauthorized charges
However, the special financing is deferred interest, meaning you‘ll owe backed interest at a high 26.99% APR if not paid in full by the end of the promo period. And the 5% discount can‘t combine with other offers.
Lowe‘s Business Account
For pros, the Lowe‘s Business Account offers:
- 5% off every day on eligible purchases, up to $25,000/year
- Special 0% financing offers for 6-84 months, depending on spend
- Itemized billing statements and tracking
- Tiered bulk discounts based on annual spend
- Reduced delivery fees
The same deferred interest trap applies here – stiff APR penalties await if you don‘t pay your full balance on time.
Project Loan
For big-ticket renovations, Lowe‘s offers unsecured loans from $2,000-$100,000 through Marcus by Goldman Sachs. APRs range from 7-20% with terms of 36-84 months, based on creditworthiness.
These loans have fixed equal payments and no prepayment fees, a simpler structure than Lowe‘s credit cards. But you may find better rates elsewhere, so shop around.
Lease to Own
Through Progressive Leasing, Lowe‘s lets you take home appliances, tools, and more for just $49 down and monthly installments. After 12 months of payments, the item is yours.
Lease-to-own offers easy approvals and low upfront costs. But with APRs often exceeding 100%, you‘ll pay far more than retail price. It‘s a last resort for those with poor or no credit.
How Lowe‘s Financing Stacks Up
To help you weigh your Lowe‘s payment options, here‘s a quick comparison to other major home improvement retailers:
| Store | 0% Financing | Everyday Discount | Lease-to-Own | Personal Loans |
|---|---|---|---|---|
| Lowe‘s | 6-84 mos | 5% w/ credit card | 12 mos, $49 down | $2K-$100K, 7-20% APR |
| Home Depot | 6-24 mos | None | 12 mos, $40 down | Up to $40K, 7-29% APR |
| Menards | 6-60 mos | None | 12-18 mos, $79 down | None |
| Harbor Freight | None | Inside Track Club | 12 mos, 10% down | None |
As you can see, Lowe‘s has the longest 0% financing terms and is the only one to offer an everyday discount for cardholders. But beware the deferred interest and high APRs that come with those perks.
Home Depot‘s financing is more barebones, with the notable exception of Afterpay. Menards and Harbor Freight offer lease-to-own but no loans.
Is Financing at Lowe‘s Worth It?
Like any financing decision, it depends. Carefully weigh the pros and cons:
Advantages:
- Spreads out payments on big-ticket items
- 5% discount is generous if you avoid interest
- Multiple financing terms for different needs
- No hard credit pull for lease-to-own
Disadvantages:
- Deferred interest can be costly if you miss payments
- High regular APRs of 26.99%+
- 5% off doesn‘t stack with other promos
- Lease-to-own is very expensive long-term
If you can pay off your balance quickly, the 5% discount is a nice bonus. For large planned expenses, a Project Loan may offer better rates than credit cards. But in general, it‘s best to save up and pay in cash when possible.
Lowe‘s financing incentives are designed to drive loyalty and bigger purchases. But they only benefit Lowe‘s and its lending partners if you carry a balance or miss payments. Tread carefully and read the fine print.
The Bottom Line
While Lowe‘s doesn‘t offer trendy BNPL options like Afterpay, it has a robust if complex array of financing choices. As a shopper, you‘ll need to cut through the marketing noise and assess what makes sense for your budget and goals.
Don‘t just fixate on low monthly payments – look at the total cost of borrowing. Run the numbers and see how much extra you‘ll pay in interest and fees. Forecast your cash flow to ensure you can handle the recurring bills.
When possible, save up for big buys to avoid financing entirely. If you do need to borrow, shop around for the best rates. Consider a low-interest personal loan over high-APR retailer financing.
And if you use Lowe‘s credit cards, have a plan to pay off large purchases within the 0% promo window. Set reminders and autopay so you never miss a due date. Treat it like an interest-free loan, not a license to overspend.
With mindful planning and spending, you can achieve your home improvement dreams without destroying your finances. Focus on needs vs. wants, stick to a budget, and pace yourself. Little by little becomes a lot!
