As a savvy shopper and home improvement enthusiast, you know that strategic use of store credit cards can help you maximize savings and enjoy exclusive perks. If Lowe‘s is your go-to destination for tools, appliances, and project supplies, understanding how their credit card works is essential.
In this ultimate guide, we‘ll take an in-depth look at which credit bureau Lowe‘s uses for their card applications, what credit score you need to qualify, and insider tips for making the most of Lowe‘s credit card benefits. Let‘s dive in!
How Lowe‘s Evaluates Credit Card Applications
When you apply for a Lowe‘s Advantage Card, Business Account, or Accounts Receivable credit line, Lowe‘s will request your credit report from one of the three major U.S. credit bureaus: Equifax, Experian, or TransUnion.
According to a Lowe‘s representative, their system is set up to randomly select one of these bureaus for each application. There‘s no way to predict or influence which one they will pull from.
This single hard inquiry will usually cause a temporary 5-10 point dip in your credit score. Lowe‘s does this to evaluate your creditworthiness and decide:
- Whether to approve or decline your application
- What starting credit limit to grant you
- Which APR and special financing offers to extend
Lowe‘s looks at multiple factors on your credit report, but most importantly your credit score. Their cards typically require a FICO score of at least 640, which is considered "fair" credit. However, some applicants with lower scores in the 600s have reported approval.
Here‘s a breakdown of average credit profiles approved for Lowe‘s cards:
| FICO Score Range | Approval Odds |
|---|---|
| < 600 | Poor |
| 600-639 | Fair |
| 640-699 | Good |
| 700-749 | Very Good |
| 750+ | Excellent |
Sources: CreditKarma, WalletHub, FICO
Keep in mind, your income, debt-to-income ratio, and recent credit inquiries can also impact Lowe‘s decision beyond just your credit score. Building a strong overall financial profile is key.
Getting the Most Out of Lowe‘s Credit Card
Once approved for a Lowe‘s credit card, it‘s time to start reaping the rewards. The flagship Lowe‘s Advantage Card offers an impressive 5% discount on eligible purchases every day. For a frequent Lowe‘s shopper, this adds up to serious savings over time.
Perhaps even more valuable are Lowe‘s special financing deals for cardholders. With the Advantage Card, you can get 6 months of 0% deferred interest financing on purchases of $299+. For larger home improvement projects, this is a great alternative to a traditional loan.
It‘s important to note though that deferred interest financing is different from a true 0% intro APR offer. You must pay off your entire balance within the 6 month promotional window, or retroactive interest will be applied from the purchase date.
Carefully tracking your financed purchases and budgeting to pay them off on time is a must. Lowe‘s does report your payment history to the credit bureaus, so you can boost your credit score by responsibly managing your account.
Another smart strategy is taking advantage of sign-up bonuses and limited-time offers. As of June 2023, new cardholders can save up to 20% (max $100 discount) on their first Lowe‘s purchase using the Advantage Card. Exclusions apply, but stacking this discount with Lowe‘s weekly sales can lead to eye-popping savings.
Making Sense of Lowe‘s Credit Limits and Potential for Increases
New Lowe‘s cardholders often start out with a modest credit line, but the exact amount varies based on creditworthiness. Some report initial limits as low as $150, while others with stronger credit receive $1,000+.
The good news is that Lowe‘s periodically reviews accounts for credit line increase opportunities — sometimes automatically at 6-12 month intervals. Consistently paying your bill on time, keeping your utilization low, and continuing to use the card regularly can help your chances of a limit boost.
You can also request a manual credit line increase review by calling Lowe‘s customer service. Just be aware that this could result in another hard pull on your credit report.
If you‘re not instantly approved, you may also receive a counteroffer from Lowe‘s for a lower starting credit limit than you requested. Consider whether this smaller limit would still meet your purchasing needs before accepting.
Lowe‘s does reserve the right to decrease your credit line if you show signs of financial distress like exceeding your limit, making late payments, or defaulting on other credit accounts. Stay on top of your Lowe‘s card and overall credit health to avoid limit cuts.
Expert Insight on Store Card Strategies
To get an insider perspective, I reached out to John Ulzheimer, a nationally recognized credit expert who has worked for Equifax and FICO. Here‘s what he had to share about store cards like Lowe‘s:
"Store credit cards are a bit of a double-edged sword. On one hand, they often come with enticing rewards, discounts, or special financing offers that can be valuable if used strategically. However, they also tend to have higher APRs, lower credit limits, and stricter approval requirements compared to general use credit cards.
My advice is to pursue store cards selectively at retailers you already have a strong relationship with and where you‘ll get the most value from the cardholder benefits. Avoid impulsively signing up at every checkout counter, as each application can ding your credit score.
For those with fair or average credit, a store card that reports to the credit bureaus can be a helpful tool for building credit — as long as you keep utilization low and pay on time. Just be sure to look beyond the flashy introductory incentives and carefully compare the ongoing rewards, financing options, and fees against other card options."
Lowe‘s Credit Score Requirements vs. Other Store Cards
Wondering how Lowe‘s stacks up against other popular store cards in terms of credit score requirements? Here‘s a quick comparison chart:
| Store Card | Typical Minimum Credit Score | Credit Bureau(s) Used |
|---|---|---|
| Lowe‘s Advantage Card | 640 | Equifax, Experian, or TransUnion |
| Home Depot Consumer Credit Card | 640 | Equifax, Experian, or TransUnion |
| Walmart Rewards Card | 600 | TransUnion |
| Target RedCard | 620 | Experian or TransUnion |
| Costco Anywhere Visa Card | 720 | Experian |
| Amazon Prime Rewards Visa Signature | 640 | TransUnion |
| Nordstrom Retail Card | 680 | Experian |
Sources: CreditCards.com, CreditKarma, WalletHub, DespiteBoundsHQ
As you can see, Lowe‘s falls right in the middle of the pack. Their credit score threshold is on par with close competitor Home Depot and slightly higher than general merchandise retailers like Walmart and Target.
Premium store cards from Costco and Nordstrom have a higher bar for approval, often requiring good to excellent credit. This reflects their more affluent target demographic and the enhanced rewards (like higher cash back rates) these cards provide.
The Bottom Line
In summary, Lowe‘s uses Equifax, Experian, or TransUnion for their credit card application hard inquiries. They typically look for a credit score of at least 640, though some fair credit applicants may still be approved.
If you‘re a Lowe‘s regular with solid credit and a handle on your budget, their store cards offer impressive everyday discounts and special financing that can make large purchases more affordable.
Just be sure to avoid carrying a balance long-term, pay on time, and keep your utilization in check. By combining smart credit strategies with savvy use of Lowe‘s cardholder benefits, you can come out ahead on all your home improvement buys.
Hopefully this guide has equipped you with a comprehensive understanding of how Lowe‘s uses credit bureaus and what their card can offer your wallet. If you still have questions, feel free to reach out. Happy shopping!
