No more 'no interest no payments' offers means fewer charges on store cards

Fewer customers these days are using store credit cards, at least at Home Depot, after credit card reform enacted in February put an end to "no payment, no interest" offers.

The chain, which operates more than 2,240 stores, has seen its private-label credit card penetration drop from 26 percent last year to 23 percent this year.

About half of the drop is because the company can no longer offer six months of no payments and no interest on purchases above $299, Chief Financial Officer Carol Tome said on a conference call Nov. 16. The change was part of the Credit Card Accountability, Responsibility and Disclosure Act.

"It's now no-interest, minimum-payment, and customers are looking at that minimum payment and albeit it's a small payment, but they're looking at that payment and saying I'm not sure that value proposition works for me anymore," Tome said. "And so they're switching out to bank cards, and we've seen an increase in our bank card penetration accordingly."