5 Things to Know About the Synchrony Home Credit Card

The Synchrony Home credit card wants to be your go-to card for, well, home purchases, but in truth, a general rewards card will likely serve you better. Home-related buying tends to be expensive, which is all the more reason to use a card that earns cash back or has a sign-up bonus that can effectively act as a discount on those home purchases. Unfortunately, the Synchrony Home card lacks both perks.

Instead, it tries to entice people with financing offers, which seem promising but can end up costing you money if you don’t understand their terms.

Here are five things to know about the Synchrony Home Credit Card.

» MORE: Best credit cards for home improvement and new homeowners

1. The card’s promotional financing offers can be risky

The main selling point of the Synchrony Home card is the promotional financing, or deferred interest. Cardholders can get six months of promotional financing on purchases of $299-$1,998.99, or 12 months of promotional financing on purchases of $1,999 or more. Some Synchrony partner locations defer interest for up to 60 months.

Deferred interest can save you money on interest charges, but only if you are able to pay off the entire balance before the promotional period ends. If you don’t, you’ll be charged interest on the original purchase amount that’s been accruing throughout the promo period.

Say you purchase a $2,000 couch with your Synchrony Home card and get the 12-month deferred interest offer, but you have a $50 balance left on the card at the end of the promo period. You’ll be charged interest on the full $2,000 rather than the more manageable $50.

For those uncomfortable with the inherent risk of deferred interest, a card with a 0% introductory APR offer is a safer option. For the term of the 0% period, you won’t be charged any interest, and if you have a balance remaining at the end of that promotional period, you'll owe interest only on that remainder, not the entire amount.

» MORE: Credit card interest calculator

2. It doesn’t earn rewards

The Synchrony Home card stands out among other co-branded store cards — and not in a good way. Many co-brands reward customers with points on purchases made at a particular store or chain of stores; the Synchrony card doesn’t.

To save some coin on big-ticket items, consider using a cash-back card instead of the Synchrony Home. For example, the U.S. Bank Cash+® Visa Signature® Card can earn 5% back in a variety of categories, including furniture stores. (The 5% rate applies to the first $2,000 in combined spending between two categories of the cardholder’s choice each quarter, and you must opt into your bonus categories every quarter.)

» MORE: Best cash-back credit cards

3. The card only works at Synchrony’s partner stores

The Synchrony card can be used at more than 16,000 partner retailers including Bassett, Conn’s Home Plus and Mattress Warehouse. Use Synchrony’s store locator to find merchants that accept the Synchrony Home credit card.

But despite those thousands of Synchrony Home partners, this credit card isn’t a true "open-loop" card that can be used anywhere the card’s payment network is accepted. Other cards are better equipped for everyday spending.

» MORE: What is Synchrony Bank, and are its credit cards right for you?

4. You’ll select a Home partner location during the application process 

You can apply for the Synchrony Home card at a partner retailer, on a partner’s website or at www.synchrony.com. When you apply from Synchrony’s website, you’ll first be prompted to select a Synchrony Home partner store, which is really a formality. Regardless of where you apply or your store choice, you’ll receive a credit card that can be used at all of Synchrony's partner stores.

5. Card-linked offers may open up more savings

Synchrony Home cardholders have access to card-linked offers, which are digital coupons that can be added to your credit card. When you make a qualifying purchase, the coupon is automatically applied. As of this writing, most offers were for deferred interest of varying lengths.