$50 from Home Depot

[Pinnacle-Project]

I have been going to Home Depot pretty regularly since we moved over Memorial Day weekend. Today, the cashier told me she would take $50 off my purchase if I signed up for a Home Depot credit card. That was enough incentive for me so I did it.

The finance department at Home Depot is not full of idiots. They keep track of how much they make in finance charges off the average Home Depot card holder. They also study people's buying habits to see if the average total purchase increases after a person gets a card. They also study store loyalty to see if a person is more likely to shop at Home Depot after getting the card versus splitting their purchases between Home Depot and various competitors. No doubt, there are other criteria that I am forgetting right now. If they are willing to pay me $50 to sign up for a credit card it is because they expect to make that much back and more.

In my case, I am confident I will never pay any interest or fees and I do not expect it to change my buying habits because I already do the overwhelming amount of my home improvement buying there anyway. I could be wrong but for the sake of discussion, let's say I am right. That means they have to make that much more off other people to compensate for not making anything extra off me.

I remember in college I used to sign up for Sears credit cards all the time in order to get the free Tupperware knock offs and other cheap gifts they offered. The ante certainly has been raised.

Anyway, I just found this interesting. If you trust yourself with the card, be sure to sign up the next time you are there. It's a nice incentive.

[emr]

I really dislike credit cards. Despite that I have two, one for the company and one private, both of which I need to pay certain bills every month because that is just the way it is and there are not other payment options.

I would gladly drop both in a heartbeat. Both are debit cards that must be paid back in full every month so no credit hole at least.

I had a friend who had a seriously minimum income but was still allowed to load up 10k in debt, they were then paying back the minimum plus ridiculous interest every month. Those companies are bottom feeding loan sharks.

That being said, if you are fiscally responsible there should be no issue but I would always avoid if possible.

[Pinnacle-Project]

I agree with you 100%. I have a Visa I use for work, a Kohls because it is often the only way to get their 30% off deals, and now this Home Depot. Overall, I feel the credit card industry is full of scum and only one very small step above payday lenders.

[CeeBee]

AFAIK some HD stores are in some internal competition for signing up most people for credit cards. You are NOT the only one offered a card, i am at HD on a weekly basis and keep being annoyed with the offer despite already having the CC.
As far a CCs in general go, I put EVERYTHING on CC, except maybe a bread at the bakery where they have a $10 minimum charge and the mortgage where they don't take CC.
1-3% cash back on purchases adds up quickly if you count EVERY SINGLE PURCHASE and most bills. I get some $600+ back every year - that is FREE MONEY. On top of it Discover had a promo this year for an additional $500 cash back for spending $3k every month for 6 months... Easy money since the daycare alone is most of it. So this year I got over $1000 back as CASH. Had i been using cash or debit instead I would have received exactly ZERO.

[74AD]

AFAIK some HD stores are in some internal competition for signing up most people for credit cards. You are NOT the only one offered a card, i am at HD on a weekly basis and keep being annoyed with the offer despite already having the CC.
As far a CCs in general go, I put EVERYTHING on CC, except maybe a bread at the bakery where they have a $10 minimum charge and the mortgage where they don't take CC.
1-3% cash back on purchases adds up quickly if you count EVERY SINGLE PURCHASE and most bills. I get some $600+ back every year - that is FREE MONEY. On top of it Discover had a promo this year for an additional $500 cash back for spending $3k every month for 6 months... Easy money since the daycare alone is most of it. So this year I got over $1000 back as CASH. Had i been using cash or debit instead I would have received exactly ZERO.

same except we use a Southwest airlines visa and rack up airfare points.
We are taking the kids to universal studios this coming Feb and were able to book all 4 flights for essentially nothing (you pay $11 / flight in fees they aren't allowed to comp) and we still have enough left for 2 round trip tickets somewhere should Jamie and I want to get away.

I also book all my work travel exclusively with southwest so I get points for flying for work added to my account as well

[Cleetus]

We just started with the United card a couple months ago. Everything we can goes on the card, gets paid off every Friday. Don't use any other cards anymore(racked up a lot of debt over the 14 months I was unemployed). They gave us a huge sign on bonus for the first thousand or two put on the card, so we have enough now for the two of us to take a couple of flights. Plus we get the free check in. Should work out nicely.

But if we didn't pay it off, we would definitely be paying for those who are responsible.

[Pinnacle-Project]

. . . You are NOT the only one offered a card, i am at HD on a weekly basis and keep being annoyed with the offer despite already having the CC.

I did not mean to imply I was unique in any way because I was offered a credit card. I'm sure they offer one to everyone. If I had taken my dog into the store with me, they might have even offered him one.

[JaxSon]

As far a CCs in general go, I put EVERYTHING on CC, except maybe a bread at the bakery where they have a $10 minimum charge and the mortgage where they don't take CC.
1-3% cash back on purchases adds up quickly if you count EVERY SINGLE PURCHASE and most bills. I get some $600+ back every year - that is FREE MONEY. On top of it Discover had a promo this year for an additional $500 cash back for spending $3k every month for 6 months... Easy money since the daycare alone is most of it. So this year I got over $1000 back as CASH. Had i been using cash or debit instead I would have received exactly ZERO.

Sounds like a commercial!

What do you have in your wallet?

[CeeBee]

Sounds like a commercial!

Maybe, but free money is free money. $1100 cash in the last 13 months.

[Pinnacle-Project]

Maybe, but free money is free money. $1100 cash in the last 13 months.

I'm glad this is working for you but you are the exception. Most people end up keeping a balance on their card. The interest and fees they pay exceeds any benefit they may receive.