If you’re planning a home project this spring, two credit cards will earn you 5% cash back at Home Depot, Lowe’s, and most hardware stores. One of them is time-limited. The other works year-round. Here’s which to reach for.
The Short Answer
Right now (through June 30, 2026): Discover it Cash Back earns 5% at home improvement stores this quarter. No annual fee. First-year earnings are automatically doubled.
Year-round: Citi Custom Cash earns 5% on whatever category you spend the most in each billing cycle. If home improvement is your top spend, it earns 5% automatically. No annual fee, no activation required.
Top Pick for Q2 2026: Discover it Cash Back
From April 1 through June 30, 2026, the Discover it Cash Back card earns 5% cash back at home improvement stores, including Home Depot, Lowe’s, Menards, and Ace Hardware. You must activate the quarterly bonus at Discover’s website before earning the elevated rate.
Key numbers (verified 2026-03-22):
- 5% on home improvement stores and restaurants this quarter (combined $1,500 cap)
- 1% on everything else
- $0 annual fee
- Cashback Match in your first cardmember year: Discover automatically doubles every dollar you earn, making the effective rate 10% during Q2 2026 if this is your first year
The $1,500 cap covers home improvement stores and restaurants combined for the quarter. If you spend $800 at Home Depot and $700 at restaurants between April and June, you’ve hit the cap. Plan accordingly if you have a large renovation project.
Who this card is NOT for: If you need the 5% rate beyond June 30, or if you already have a restaurant-heavy month where the cap gets consumed before your Home Depot run, consider the Citi Custom Cash below.
Best Year-Round Option: Citi Custom Cash
The Citi Custom Cash earns 5% on your top eligible spending category each billing cycle, automatically. Home improvement stores are one of the 10 eligible categories. No activation, no calendar window.
Key numbers (verified 2026-03-22):
- 5% on your highest-spend eligible category (auto-detected each billing cycle)
- Home improvement stores are an eligible 5% category
- $500/month cap in the top category (then 1%)
- 1% on all other purchases
- $0 annual fee
- Earns Citi ThankYou points (redeemable for cash back at 1 cent per point)
The $500/month cap equals $6,000/year at 5% if home improvement is consistently your top category. That’s $300 in cash back annually. For most homeowners doing ongoing maintenance and improvement projects, that cap is rarely a constraint in a single month.
The catch: if you spend more on dining or groceries in a given month, those categories take the 5% instead of home improvement. The Citi Custom Cash works best when you can plan a big home project purchase to dominate that billing cycle.
Who this card is NOT for: If your home improvement spending is sporadic and your dining or grocery spend is consistently higher, you’d do better pairing the Citi Custom Cash with another 5% card for your dominant category.
Comparison Table
| Card | Rate at Home Depot/Lowe’s | Cap | Annual Fee | Catch |
|---|---|---|---|---|
| Discover it Cash Back | 5% (Q2 2026 only, Apr 1–Jun 30) | $1,500/quarter (shared with restaurants) | $0 | Activation required; seasonal only |
| Citi Custom Cash | 5% year-round (if top category) | $500/month | $0 | Only earns 5% on top category; dining/grocery can displace it |
| Home Depot Consumer Credit Card | 0% cash back | N/A | $0 | No rewards; only value is 0% financing promotions |
The Store Card Trap
The Home Depot Consumer Credit Card is the most common card people swipe at checkout for home improvement purchases. It earns zero cash back. The card’s only value is deferred-interest 0% APR financing on large purchases, which requires paying the full balance before the promotional period ends to avoid retroactive interest charges.
If you’re financing a $3,000 appliance or renovation and need 18 months to pay it off, the 0% APR has real value. If you pay your balance in full each month, the Home Depot card leaves 5% cash back on the table every time you use it instead of a Discover it or Citi Custom Cash.
The same logic applies to the MyLowe’s Rewards Card, which earns 5% at Lowe’s but is a closed-loop store card: it can only be used at Lowe’s and Lowe’s related properties. If you shop across multiple stores, a general card like the Citi Custom Cash gives you the same 5% rate and works everywhere.
One More Option Worth Knowing
The U.S. Bank Shopper Cash Rewards Visa Signature Card reportedly earns 6% cash back when you designate Home Depot or Lowe’s as one of your chosen retailers (enrolled quarterly, cap applies). U.S. Bank rates are not in our verified database, so confirm the current terms directly on the U.S. Bank website before relying on that rate.
Bottom Line
If your home project falls before June 30, 2026 and you can activate the Discover it Cash Back quarterly bonus, that’s your best move: 5% with no annual fee, and a full Cashback Match if you’re in your first year. For ongoing or year-round home improvement spending, the Citi Custom Cash earns 5% automatically as long as hardware stores represent your highest spend in a given month. Skip the store cards unless you specifically need deferred-interest financing.
Frequently Asked Questions
Q: Does the Discover it 5% apply at all hardware stores?
A: The Q2 2026 category covers home improvement stores broadly, which includes Home Depot, Lowe’s, Menards, and Ace Hardware. Smaller independent hardware stores may or may not qualify depending on their merchant category code. Confirm your store’s MCC on Discover’s website before a large purchase.
Q: What if I spend more on dining than home improvement in a month?
A: The Citi Custom Cash automatically applies the 5% to whichever eligible category is highest that billing cycle. If dining beats home improvement, the card rewards your dining instead. Plan large hardware store runs to coincide with billing cycles where you know home improvement will dominate.
Q: Can I use both cards to maximize rewards?
A: Yes. Use the Discover it Cash Back for home improvement purchases through June 30 (capturing the seasonal 5% plus any Cashback Match), then switch to the Citi Custom Cash for purchases from July onward. Both cards have no annual fee.
Q: Is the Home Depot store card ever worth it?
A: Only if you need 0% financing for a large purchase and need more than 12 months to pay it off. Pay it in full before the promotional period ends, or the deferred interest applies retroactively to the entire original balance.
Q: Does the Citi Custom Cash earn 5% at both Home Depot and Lowe’s?
A: Yes. Home improvement stores as a category covers both chains, as well as other hardware and home goods retailers that code under home improvement merchant categories. The 5% applies to whichever home improvement store you shop at, not just one chain.