The Ace Hardware credit card is a store card that gives you rewards on purchases at Ace Hardware locations, but charges interest if you carry a balance

The Ace Hardware credit card is issued by Comenity Bank and works only at Ace Hardware stores and their website. You earn rewards points on every purchase, but the card charges interest on unpaid balances — typically a variable rate that changes with the prime rate. Unlike a general-purpose credit card, this card has no value outside the Ace ecosystem, so it makes sense only if you shop at Ace regularly.

The card offers no annual fee, which is standard for store cards. The main trade-off is that the interest rate is usually higher than what you would pay with a general credit card if you have good credit. If you pay your full balance each month, the interest rate does not matter to you.

Key Takeaways

  • The Ace Hardware card earns rewards points on purchases at Ace Hardware, but only at Ace Hardware — the points have no value elsewhere.
  • The card charges a variable interest rate on balances you do not pay in full each month, typically higher than rates on general credit cards.
  • There is no annual fee, and you can request a credit limit increase after you have used the card responsibly for several months.
  • The rewards rate and redemption structure vary depending on your cardholder tier, which is determined by how much you spend in a year.

How the rewards program works

The Ace Hardware card rewards you with points for every dollar you spend at Ace Hardware. The exact rate depends on which tier you are in — the more you spend in a year, the higher your rewards rate becomes. Tier 1 members earn one point per dollar; Tier 2 members earn 1.25 points per dollar; Tier 3 members earn 1.5 points per dollar.

You redeem points as a statement credit — a reduction on your credit card bill — rather than as a discount at the register. Points do not expire as long as your account remains open and in good standing. You can check your points balance and redeem them through your online account or by calling the customer service number on the back of your card.

The redemption value is typically one cent per point, though Ace occasionally runs promotions that increase the value. For example, during certain periods you might earn bonus points on specific product categories or redeem points at a higher rate.

Interest rates and fees

The Ace Hardware card charges a variable annual percentage rate (APR) on purchases you do not pay in full. The exact rate you receive depends on your credit score and credit history at the time you open the account. Rates typically range from the mid-teens to the mid-20s, though this varies.

There is no annual fee, no late fee structure published on the card's terms, and no foreign transaction fees — because the card only works in the United States. If you miss a payment, contact Comenity Bank when ready; late payments are reported to credit bureaus and damage your credit score.

If you carry a balance, the interest charges will quickly outpace the rewards you earn. A 1.5% rewards rate on a $1,000 balance at a 20% APR costs you $200 per year in interest but earns you only $15 in rewards — a net loss of $185.

When this card makes financial sense

The Ace Hardware card is worth considering if you spend at least $1,500 to $2,000 per year at Ace Hardware and pay your balance in full every month. At that spending level, you earn enough rewards to offset the card's limitations. If you carry a balance month to month, the interest charges eliminate any benefit from the rewards.

The card also makes sense if you value the convenience of a dedicated card for a store where you shop regularly. Some people prefer to keep store cards separate from general-purpose cards for budgeting or accounting reasons.

The card does not make sense if you shop at Ace Hardware only occasionally, if you cannot pay your balance in full each month, or if you have access to a general credit card with a lower interest rate and rewards that work anywhere.

How to open an account

You can open an Ace Hardware credit card account in person at any Ace Hardware store or online through the Ace Hardware website. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Comenity Bank makes a credit decision within minutes in most cases.

You do not need to be an existing Ace Hardware customer to open the card. Your credit score affects the interest rate you receive and whether you are approved at all. If you are denied, you can ask the bank why and reapply after addressing the issue — for example, by paying down other debts or correcting errors on your credit report.

Once approved, your card arrives by mail within 7 to 10 business days. You can set up it online or by phone before it arrives, and you can begin using it at any Ace Hardware location or on their website when ready after set up.

Comparing this card to alternatives

If you want rewards on hardware and home improvement purchases but want them to work at multiple stores, a general credit card with cash back or points may be better. Cards like the Chase Freedom Unlimited or the Capital One SavorOne offer 1.5% to 2% cash back on all purchases and work everywhere, not just at one chain.

If you shop at multiple home improvement stores — Ace Hardware, Home Depot, Lowe's — a general rewards card gives you consistent rewards across all of them. The Ace card locks you into one retailer, which limits its usefulness if your shopping habits change.

If you have fair or poor credit, the Ace Hardware card may be easier to open than a general credit card, since store cards sometimes have lower credit score requirements. However, the higher interest rate means you should only use it if you can pay the balance in full each month.

Managing your account and building credit

Once you open the account, you can manage it through the Ace Hardware website or mobile app, or by calling Comenity Bank's customer service line. You can set up automatic payments to may support you never miss a due date, view your balance and rewards, and read statements.

Using the card responsibly — paying on time and keeping your balance low — builds your credit score over time. After several months of on-time payments, you can request a credit limit increase, which may also help your credit score by lowering your credit utilization ratio.

If you stop using the card, Comenity Bank may close the account after a period of inactivity, typically 12 months or more. Closing an old account can lower your credit score, so if you want to keep the account open but do not use it often, make a small purchase every few months and pay it off when ready.

Frequently Asked Questions

Can I use the Ace Hardware card at other stores?

No. The card works only at Ace Hardware locations and on the Ace Hardware website. It cannot be used at Home Depot, Lowe's, or any other retailer. If you need a card that works at multiple home improvement stores, a general credit card is a better choice.

What happens if I carry a balance on the card?

Interest charges begin when ready on any balance you do not pay in full by the due date. The interest rate is variable and typically ranges from 15% to 25% depending on your credit. At these rates, interest charges quickly exceed the rewards you earn, making the card a net cost rather than a benefit.

How do I redeem my rewards points?

You redeem points as a statement credit through your online account or by calling customer service. Points are worth approximately one cent each, though promotional periods may offer higher redemption rates. Points do not expire as long as your account is open and in good standing.

Will opening this card hurt my credit score?

Opening any new credit account triggers a hard inquiry, which temporarily lowers your score by a few points. Over time, the card helps your score if you pay on time and keep your balance low, because it adds to your credit history and lowers your overall credit utilization ratio.

Can I increase my credit limit?

Yes. After using the card responsibly for several months with on-time payments, you can request a credit limit increase through your online account or by calling customer service. A higher limit can help your credit score by lowering your credit utilization ratio, as long as you do not increase your spending.