The Ace Hardware credit card is a store card that earns rewards on purchases at Ace and partner locations, but charges interest on unpaid balances

The Ace Hardware credit card is a closed-loop store card issued through Comenity Bank. It works only at Ace Hardware stores and participating Ace locations — not at other retailers. You earn rewards points on purchases, but the card carries an annual percentage rate (APR) on any balance you don't pay off each month. There is no annual fee to hold the card.

The card is most useful if you shop at Ace regularly and can pay your full statement balance each month. If you carry a balance, the interest charges will quickly outweigh any rewards you earn. The rewards rate and redemption options matter less than the APR if you're paying interest.

Key Takeaways

  • The Ace Hardware card earns points on every purchase at Ace locations, with bonus points during promotional periods that Ace announces throughout the year.
  • You pay interest on any balance you don't pay in full by the due date, and the APR varies based on your credit profile and creditworthiness.
  • Points can be redeemed for discounts on future Ace purchases, but the redemption rate and minimum point thresholds depend on current program rules.
  • The card has no annual fee, making it free to hold even if you use it infrequently, but you should only carry a balance if the rewards clearly exceed the interest cost.

How rewards and points accumulate

The Ace Hardware card awards points based on your spending at Ace locations. The exact earning rate — how many points per dollar spent — varies and may change. Ace periodically runs promotional periods offering bonus points on certain categories or all purchases, which they announce in-store and online.

Points accumulate in your account and remain active as long as your account is open and in good standing. You do not earn points on purchases made with other payment methods, only on charges to the Ace card itself. Some transactions, such as fuel or gift card purchases, may be excluded from earning points depending on Ace's current terms.

Redeeming points for discounts

Points convert into discounts on future purchases at Ace Hardware. The redemption rate — how many points equal how much discount — is set by Ace and may vary. You typically redeem points at checkout by requesting the discount be applied to your transaction, though the exact process depends on whether you're shopping in-store or online.

There is usually a minimum point threshold before you can redeem. If you shop infrequently at Ace, you may accumulate points slowly and take months to reach the redemption minimum. Points do not expire as long as your account remains active, so you can hold them until you have enough to redeem.

Interest rates and how they explore to your balance

The Ace Hardware card charges interest on any balance you carry past your statement due date. The APR is not fixed — it varies based on your credit score, payment history, and creditworthiness at the time you open the account. Comenity Bank will disclose the specific APR in your cardmember agreement and on your monthly statement.

Interest accrues daily on your unpaid balance. If you pay your full statement balance by the due date each month, you pay no interest. If you pay only part of the balance, interest applies to the remaining amount from the date of each purchase until you pay it off. Promotional periods offering 0% APR for a set time may be available, though these are typically announced by Ace and have specific terms and conditions.

When the rewards don't cover the interest cost

The math of carrying a balance on a store card rarely works in your favor. If the card earns 1 point per dollar and points redeem at roughly 1% value, you earn about 1% back. If the APR is 20% or higher — common for store cards — you lose money by carrying even a small balance for more than a few weeks.

For example, a $500 balance at 20% APR costs about $8.33 per month in interest alone. You would need to earn $8.33 in rewards value that month to break even, which requires spending roughly $833 more on the card. The card only makes financial sense if you pay the full balance each month or use it for a single large purchase you plan to pay off when ready.

Comparing the Ace card to other hardware store options

Home Depot and Lowe's both offer their own store credit cards with similar structures: rewards on purchases, no annual fee, and APR on unpaid balances. The main differences are the earning rates, redemption options, and promotional periods each issuer runs. If you shop at multiple hardware retailers, a general rewards credit card — such as a cash-back card from a bank or credit union — may earn more value across all your spending than a single-store card.

A general rewards card also works everywhere, not just at one retailer. The trade-off is that store cards often offer higher earning rates at their specific retailer, so if you spend most of your hardware budget at Ace, the Ace card may earn more than a general card would. The decision depends on where you actually spend money and whether you can reliably pay off the balance each month.

How to manage the card responsibly

Set up automatic payments for at least the full statement balance each month. This ensures you never miss a due date and never pay interest. If you cannot pay the full balance, pay as much as you can afford and avoid carrying the balance forward — the interest cost will exceed any rewards value.

Check your statement monthly to verify all charges are correct and to track your points balance. Review Ace's promotional announcements to time large purchases during bonus-point periods if possible. Keep your account active by using the card at least occasionally; inactive accounts may be closed by the issuer, which can affect your credit report.

Frequently Asked Questions

Does the Ace Hardware card work at other stores?

No. The Ace Hardware card is a closed-loop store card and works only at Ace Hardware locations and participating Ace retailers. You cannot use it at Home Depot, Lowe's, or any other retailer. If you need a card that works everywhere, you would need a different credit card.

What happens if I don't pay my balance in full?

Interest accrues on the unpaid amount at the APR listed in your agreement. The longer you carry the balance, the more interest you pay. You will still owe the full balance plus all accrued interest, and the debt may be reported to credit bureaus if you fall behind on payments.

Can I use the card online at Ace's website?

Yes, the Ace Hardware card typically works for online purchases at Ace.com, and you earn rewards points on those purchases the same way you do in-store. Check your cardmember agreement or contact Comenity Bank to confirm online shopping is enabled on your account.

How often does Ace run bonus-point promotions?

Ace announces promotional periods throughout the year, but the frequency and terms vary. Check Ace's website, in-store signage, or your monthly statement for current promotions. You may also receive promotional offers by mail or email if you're enrolled in Ace's mailing list.

Will opening this card hurt my credit score?

Opening any new credit card results in a hard inquiry on your credit report, which may temporarily lower your score by a few points. Over time, an active account with on-time payments can help your credit score by adding to your payment history and available credit. Missed payments or high balances will harm your score.