Hearth vs Synchrony:
Fees, Lenders & Which Fits Your Business
The short answer
Side-by-side
| Hearth | Synchrony | |
|---|---|---|
| Revenue model (battle card) | — | Net interest |
| What the contractor pays | Flat annual subscription; $0 per financed transaction | Merchant (dealer) fees vary by promotional plan. Per a 2025 Synchrony home-specialty rate sheet (Samsung HVAC Preferred Dealer Plus program, doc GEN-24-4980 rev 07/16/2024): deferred-interest plans 6-24 mo = 4.35%-10.85% merchant fee; equal-monthly-payment 0% plans 25-72 mo = 11.60%-24.20%; reduced-APR fixed-payment plans (3.99%-11.99% APR) = 3.85%-22.85%. Fees differ by program and can be subsidized by manufacturers. No subscription fee published. |
| Dealer fees | No | Yes |
| Enrollment fee | Yes | Yes |
| Consumer activation fee | — | One-time $69 customer account activation fee on initial purchase (as of 7/16/24, on this home-specialty program) |
| Contractor paid upfront | Yes | No |
| How financing works | Marketplace — homeowner sees personalized offers from an 18-lender network, soft credit pull | Direct issuer — credit extended by Synchrony Bank. Product is a revolving credit card program (Synchrony HOME), not installment loans; 'estimated # of payments' on dealer sheets are payment-factor estimates |
| Lending partner | 17 | 1 (themselves) |
| Apply to multiple lenders at once | Yes | No |
| See application status | Yes | No |
| Credit limit | $250,000 | $35,000 |
| Loan type | Installment | Credit card |
| Interest-free plans | Yes | No |
| Terms | 2–12 years, fixed monthly payments | Everyday promotional financing: 6 months (purchases $299-$1,998.99) or 12 months (purchases $1,999+), 'no interest if paid in full'; select partners offer longer promos of 12-60 months; dealer rate sheets show plans out to 72 months |
| APR range | From 7.99% APR (varies by lender and credit) | Promotional plans 0%-11.99% APR (per 2025 home-specialty rate sheet); standard purchase APR 34.99% and penalty APR 39.99% for new Synchrony HOME accounts as of 7/31/2025 |
| Credit score (FICO) | All | Premium |
| Soft credit pull | Yes | Yes |
| Trades served | All home-improvement trades | Home-related categories: furniture, mattresses, flooring, electronics & appliances, HVAC, home improvement/home specialty; accessed via manufacturer programs and thousands of retail/dealer partners. Dealers must carry the base 6-month deferred-interest plan and may add up to 5 more promos; split tickets across lenders not allowed |
| Markets served | Home Improvement | Home Improvement, Healthcare, Jewelry, Auto, Electronics, Retail |
| Size & stage | 5 years in business; ~200 employees | Large, mature public company |
Every Synchrony cell above is sourced (see footer). Rates and terms vary by lender and customer credit.
Where Synchrony falls short
- Intended for franchises to offer branded credit cards (jewerly, furniture stores). Not good for contractors
- Prime borrowers only
- Only one lender
- Direct lender known for store credit cards; higher FICO requirements
- Dealer fees on most plans
- Homeowner can cancel the loan up until work starts
Source: Hearth competitive battle card and sales objection research (internal, reviewed 2026).
Hearth vs Synchrony FAQ
How much does Synchrony cost contractors?
Merchant (dealer) fees vary by promotional plan. Per a 2025 Synchrony home-specialty rate sheet (Samsung HVAC Preferred Dealer Plus program, doc GEN-24-4980 rev 07/16/2024): deferred-interest plans 6-24 mo = 4.35%-10.85% merchant fee; equal-monthly-payment 0% plans 25-72 mo = 11.60%-24.20%; reduced-APR fixed-payment plans (3.99%-11.99% APR) = 3.85%-22.85%. Fees differ by program and can be subsidized by manufacturers. No subscription fee published.
Does Hearth charge a dealer fee per loan?
No. Hearth is a flat annual subscription — most companies invest between $2,000–6,000/yr depending on the level of service, plus a one-time $99 setup fee. Financing offers come from third-party lenders and the contractor pays no per-transaction fee.
Which trades does Synchrony serve?
Home-related categories: furniture, mattresses, flooring, electronics & appliances, HVAC, home improvement/home specialty; accessed via manufacturer programs and thousands of retail/dealer partners. Dealers must carry the base 6-month deferred-interest plan and may add up to 5 more promos; split tickets across lenders not allowed
Can I switch to Hearth mid-season?
Yes. Onboarding is self-serve; most contractors send their first financed quote the same week. There is no per-loan fee to model — one flat subscription.
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Concierge onboarding
Hearth's concierge team sets financing up inside your sales process and trains your team, so offering payment options is seamless from day one.