The Lowe’s Advantage Card is a store credit card you can only use for Lowe’s purchases. It comes with a strong 5% discount on eligible purchases, which makes it one of the best options for home improvement purchases. Cardholders can also take advantage of special financing offers. But you’ll want to read the terms carefully because the financing may include deferred interest, which usually isn’t as good as an intro 0%-APR credit card offer.

Below, CNBC Select has the details on this card’s features, rates and alternatives that may work better for you.

When you use your Lowe’s Advantage Card, you’ll receive a 5% discount on all eligible purchases. This discount comes with some important exclusions — it doesn’t apply to purchases such as services (installation fees, etc.) and gift cards, and it cannot be combined with other discounts.

Cardmembers can also take advantage of a six-month deferred interest offer on qualifying purchases of $299 or more. This type of deal is riskier than a true 0%-APR deal because if you don’t pay off the purchase in full by the end of six months, you’re responsible for paying all of the interest that accumulated during the deferred interest period.

New accounts are also eligible for fixed monthly payments and reduced APR financing. With an eligible purchase of $2,000 or more, you can qualify for fixed payments for 84 months and a 9.99% APR.

In addition, there are regular limited-time discounts and offers available to cardholders, such as special financing offers for specific purchases.

The Wells Fargo Reflect® Card is a helpful tool when you want to finance an expensive purchase. New card members get a 0% intro APR for 21 months on purchases and balance transfers, then a variable APR of 18.24%, 24.74%, or 29.99% applies. Balance transfers must be made in the first 120 days to qualify for the intro APR and there is a balance transfer fee of 5% of the amount you transfer ($5 minimum).

For comparison, the Wells Fargo Reflect Card’s intro 0%-APR period is 3.5 times longer than the deferred interest period you get with the Lowe’s card. Plus, if you don’t pay off the full balance on the Reflect card, you’re only responsible for paying the interest that starts accumulating when the intro APR expires.

Lowe’s Advantage Card vs. Home Depot Consumer Credit Card

The Home Depot Consumer Credit Card is a store card, just like the Lowe’s Advantage Card. While it offers a six-month deferred interest financing that’s similar to what you get with the Lowe’s card, it has no rewards or ongoing discounts. So if you’re price shopping between Home Depot and Lowe’s, be sure to consider the 5% discount you may be eligible for with the Lowe’s Advantage Card (and the purchases that are excluded).

The Lowe’s card outperforms the Home Depot card in most ways. However, the Home Depot Consumer Credit Card gives you an extended return period of one year on qualifying purchases made with the card — a benefit the Lowe’s card lacks.

Because they typically lack robust rewards programs and come with restrictions on where you can spend, store credit cards have a hard time justifying a place in your wallet. However, with home improvement projects, the math is different. You can easily spend thousands of dollars renovating a room or upgrading appliances. So the Lowe’s card’s 5% discount can add up, as long as you’re certain the purchases you’re making qualify for the discount.

If this card’s financing offers appeal to you, be sure to compare the deals to what you can get with the best 0%-APR credit card offers. Some of the financing could make sense in certain situations, but deferred interest offers usually aren’t as valuable as a straight no-interest deal.

The Lowe’s Advantage Card is a store credit card that can be used for purchases at U.S. Lowe’s and at the retailer’s online store. It provides a 5% discount on all eligible purchases and special financing offers. The discount can quickly add up for expensive home improvements or maintenance purchases. But if you need to finance a purchase, you may be better off opening a credit card with a 0% intro APR offer. The no-interest financing available with credit cards tends to have better terms than what’s available with the Lowe’s card.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.

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