Walmart Credit Card Review – What You Should Know Before You Sign Up

Walmart-Credit-Card

Walmart Credit Card Review

If you shop online, Walmart Credit Card rewards are pretty impressive. Whether you use the Walmart Rewards Card, or the Walmart Mastercard, you get 5% cash back on purchases at Walmart.com and through the retailer’s app.  You also get 2% rebate from purchases at Walmart stores.  However, with the Mastercard, you get 2% at restaurants and on travel.  If you’re a Walmart loyalist, you’ll probably want one of these $0-annual-fee card in your wallet.  But keep in mind that they give you much greater value on virtual shopping than on brick-and-mortar, in-store shopping.

Where can you use Your Walmart Credit Card?

The Walmart Rewards™ Card is a private-label card.  that means you can only use the card at Walmart properties.  This includes Walmart.com, the Walmart app, Walmart stores and Murphy USA gas stations.  Most credit cards can be used anywhere the card network (Visa, Mastercard, American Express or Discover) is accepted, but some cards have limitations. Credit cards with restricted use are known as private-label cards or store cards and can only be used at the brand’s properties, in this case – Walmart.

On the other hand, the Capital One® Walmart Rewards™ MasterCard can be used anywhere Mastercard is accepted.  If you’re looking for a credit card that can be used anywhere, the Capital One Walmart Rewards MasterCard provides more flexibility than the Walmart Rewards Card.

Walmart’s co-branded credit cards previously were issued by Synchrony. If you had a Synchrony-issued card, it was converted to a Capital One product in October 2019.

Walmart Credit Card – Summary of Rewards

Walmart and Capital One offer two credit cards:

  1. The Capital One® Walmart Rewards™ Mastercard® is an open-loop product, meaning it can be used anywhere Mastercard is accepted.
  2. Walmart Rewards™ Card is closed loop.  It can be used only within the Walmart brand umbrella.

Either Walmart credit card offers the same base rewards, but the Capital One® Walmart Rewards™ MasterCard offers wider range of use.  This is because it can also be used anywhere MasterCard is accepted outside of Walmart affiliated properties.

Both cards offer:

  • 5% back on purchases at Walmart.com and on the Walmart app (which includes grocery pickup and delivery)
  • 2% back on Walmart purchases in stores
  • 2% back at Walmart and Murphy USA fuel stations

The Capital One® Walmart Rewards™ Card also offers:

  • 2% back on restaurants and travel
  • 1% back everywhere else Mastercard is accepted

New applicants for either card can also take advantage of a welcome bonus.  You earn unlimited 5% back in Walmart stores when using Walmart Pay for the first 12 months after approval. After the intro offer ends, you earn 2% back.  Similar to other Capital One credit cards, rewards can be redeemed at any time and for any amount. Redemption options include travel, gift cards, the ability to cash in points during online checkout at Walmart.com and statement credits.

Capital One® Walmart Rewards™ Card – Added Benefits

The Capital One Walmart Rewards MasterCard offers the most benefits.  This includes extended warranty protection, travel accident insurance, 24-hour travel assistance services, price protection and more. The Walmart Rewards Card doesn’t come with these extra perks.

APR: The ongoing APR is 17.99% – 26.99% Variable APR.

Foreign transaction fee: None.

Retail protections:

  • Price protection.
  • Extended warranty coverage.

Travel protections:

  • Car rental insurance (secondary).
  • Roadside assistance.
  • Travel accident insurance, baggage delay insurance, trip cancellation/interruption insurance.
  • Travel assistance and concierge services.

Other benefits:

  • Instant credit access upon approval. Applicants can send a text to start the application process. Once approved and verified, they have immediate access to their card and can start using it.
  • Card lock.
  • Account alerts via email or text.
  • Virtual numbers for shopping.
  • Payment options. Choose your monthly due date, and you also may have the option to pay your statement in person at a Walmart store. Stores may accept payments “as a courtesy” if you have your card with you, but payments might not be credited the same day.

Walmart Credit Card Fees

Both Walmart cards have no annual fee, but the interest rates and other fees differ.

  • Capital One® Walmart Rewards™ Card has 17.99% to 26.99% variable APR.
  • Walmart Rewards™ Card has 26.99% variable APR.

Since the Capital One® Walmart Rewards™ Card can be used anywhere Mastercard is accepted, cardholders have the ability to use the card abroad — and without paying a foreign transaction fee. This saves you the 3% fee many other cards charge for purchases made outside the U.S.

You can also use the card to complete a balance transfer, but the terms aren’t ideal. There are currently no special financing offers, and the balance transfer fee is 3% for promotional APR offers.  However, there are no fees for balances transferred at the regular APR.  If you’re looking to finance new purchases with no interest or complete a balance transfer, consider alternative cards.  Source: cnbc.com

Redeeming Rewards  

Capital One offers many easy ways to redeem your rewards, and you can do so at any time and in any amount. Award options include statement credits, travel reservations, gift cards, and during online checkout at Walmart.com. Or, you can use your rewards to pay for recent purchases using Capital One’s Purchase Eraser.

These cards don’t offer ground-breaking innovation.  But, they do have a few interesting features. For example, you can apply for these cards using the Walmart app, or even over text message. And these cards are integrated into the Walmart Pay mobile wallet.  You don’t even need to take your card with you to go shopping.

Why you might want the Capital One® Walmart Rewards™ Mastercard®

If Walmart is your preferred place for everyday shopping, the Capital One® Walmart Rewards™ Mastercard® can get you some serious savings.  This is on top of the chain’s already low prices.  Walmart is easily one of the country’s largest retailers.  They sell very nearly everything, and their co-branded credit card offers some very generous rewards. Capital One and Walmart both want this to become your go-to credit card.  Not just when it comes to Walmart-related purchases.

Even hard core Walmart fans might not be completely happy with the benefits package.  Especially those Walmart shoppers who have little interest in online shopping or are seeking competitive upfront perks. If Walmart isn’t already your preferred place to shop, this card won’t make a lot of sense.

High Rewards

Walmart sells almost anything you can think of.  If you don’t mind doing most of your shopping online, you could earn 5% on almost everything you buy.  This even includes groceries through pickup or delivery. If rubbing elbows in a brick-and-mortar Walmart store is more your speed, you’ll still get double rewards when you shop there. Bonus rewards are also possible on gas if you fill up at a Walmart fuel station, which includes Murphy USA stations. Outside of the Walmart umbrella, dining and travel qualify for elevated rewards, too. In short, it’s a solid everyday credit card.

Easy to Redeem Rewards

The only thing better than earning rewards is redeeming them.  The Capital One® Walmart Rewards™ Mastercard® makes it easy to put your earnings to good use. There’s no minimum redemption amount, and you have a wide variety of choices for using your points. Options include applying them as a statement credit or to “erase” a purchase; booking for travel through Capital One’s travel portal; or buying select gift cards available through the Capital One rewards redemption center. No matter how you use your points, they’ll always be worth a penny each.  Also, they’ll never expire as long as your account is open and in good standing. However, literal cash back is not an option as a deposit to a checking or savings account, even if you bank with Capital One.

Wide Acceptance

Since it’s a Mastercard, you’ll enjoy wide acceptance both at home and abroad. The card’s lack of foreign transaction fees combined with travel protections and benefits make it a worthy traveling companion.

Walmart Credit Card – Drawbacks to consider

Tracking Rewards Categories

Credit cards that offer different rewards rates with different spending categories can require some gymnastics.  If you find it too cumbersome to manage tiered reward levels, a good alternative is a card that earns the same flat rate back on all of your spending. 

In-Store Shopping Rewards are Limited 

For a co-branded card, 2% back on in-store Walmart purchases is pretty average. Yes, there’s a way to earn 5% back on in-store purchases in the first year you have the card.  But, it’s a temporary promotion, and it requires a specific payment method. If you prefer to do your shopping inside Walmart’s brick-and-mortar stores, you can do just as well with a number of other chash back credit cards.  At least, after the first year promotion is over.

Limited Free Shipping

Walmart.com itself advertises free shipping, but only on purchases of $35 or more. Other store cards offer free shipping to cardholders on all eligible items, no minimum purchase required. It’s not a particularly big deal, but worth mentioning.

No 0% APR Introductory Period

The Capital One® Walmart Rewards™ Mastercard® doesn’t come with an introductory interest-free window on purchases or balance transfers. Most other store cards don’t either, but many cash-back credit cards do. The low end of the card’s ongoing APR range is in line with the industry average, but not everyone will qualify for that rate.

Good to Excellent Credit Needed to Qualify

If you’re building or mending your credit score, the Capital One® Walmart Rewards™ Mastercard® may not be right for you.  Store credit cards traditionally have lower barriers to approval.  Walmart’s answer is the Walmart Rewards™ Card – but it is not a MasterCard.  Nevertheless, it has more flexible minimum requirements.  It is intended for consumers with subprime credit scores who don’t meet the approval criteria for the Capital One® Walmart Rewards™ Mastercard.

The Capital One® Walmart Rewards™ MasterCard is a true credit card that can be used anywhere Mastercard is accepted worldwide. A credit score in the ‘good’ range — at least 650 — is required for this card.

There is only one Walmart credit application, so if you apply and are not approved for a Walmart Mastercard, you may be offered a Walmart Rewards™ Card instead. You should be aware of this when you apply.  You will need to decide if that card meets your needs, as it can only be used for Walmart-related purchases.

Walmart Credit Card – Customer Reviews

Capital One typically receives high marks for its customer service and credit card satisfaction. This was most recently noted in J.D. Power’s 2019 U.S. Credit Card Satisfaction Study, which ranked Capital One third among 11 major card issuers nationwide. Capital One earned 807 out of 1,000 possible points in the study, whereas the industry average was 806.   There are two apps you may use as a Walmart Rewards Card customer—the Capital One app and the Walmart app. Both apps tend to get positive reviews. In fact, the Capital One app received the third spot in J.D. Power’s 2019 U.S. Credit Card Mobile App Satisfaction Study.

How to Make a Walmart Credit Card Payment

Pay through Walmart’s online portal

The easiest way for most Walmart Credit Card cardholders is to make their payment online. You can pay your bill by following these steps:

  1. Go to the Walmart Credit Card account management page
  2. If it’s your first time logging into your account, you’ll need to click the “register” button
  3. Enter your card number and zip code
  4. Navigate to the bill pay section
  5. Enter the credentials for the bank account you’d like your card to be paid from

Make Your Walmart Credit Card Payment by Phone

You can pay your Walmart Credit Card by phone using a service called Speedpay. The phone number for the service is: 1-877-294-7880

Paying your card this way is free unless you choose to have a representative assist you, which will cost you a $10 service charge. For that reason, it’s best to use the automated service.

Make Your Walmart Credit Card in a Store

You can also make your payment in any Walmart store at the Customer Service desk. Sam’s Club members can also make their payments in stores at any Sam’s Club location.  If you opt to pay your card in-store, employees will not be able to look up your account. So, you’ll need to have your Walmart Credit Card on-hand.

Can I Pay My Walmart Credit Card With another Credit Card?

It is technically possible to pay off your Walmart Credit Card with another credit card, but it is not advised. The most clear-cut way to accomplish this is to take out a cash advance with one credit card and use that cash to pay off your Walmart Credit Card.  Of course, taking out a credit card cash advance almost always comes with huge fees and high interest rates. So unless you’re trying to get into more debt, you shouldn’t pay off your card this way.

Should you get a Walmart Credit Card?

Do you already do the bulk of your shopping at Walmart?  Are you OK with doing so mainly online?  If you answer yes to both questions, a Walmart Credit Card is worth looking into.  You‘ll be rewarded not only for Walmart-related purchases, but also in several other helpful everyday categories.  If you don’t shop at Walmart, don’t live near one, or if another place suits your needs better, consider instead a general cash-back credit card that aligns with your budget.

Walmart Credit Card – Bottom Line

A Walmart credit card seems like a good choice at first glance.  Both options offer up to 5% back on Walmart purchases, but a closer look shows that the rewards are more geared to online Walmart purchases. If you prefer to shop at Walmart.com, the Walmart app or via Walmart Grocery Pickup and Delivery, then the 5% rewards rate is unmatched.  Just remember, the 5% only lasts for the first twelve months.

If you decide that a Walmart rewards card is your best option, either the Capital One® Walmart Rewards™ Card or the Walmart Rewards™ Card can help you save. The Walmart Rewards™ Card is good if you only plan to use the card on Walmart purchases.  If you want to use the card for more than just Walmart, consider the Capital One® Walmart Rewards™ Card.

However, there is only one application for both cards.  Capital One will initially consider you for the Capital One® Walmart Rewards™ Mastercard®. If they are unable to approve you for that card, you will automatically be considered for the Walmart Rewards™ Card.

There’s also a good case to be made for avoiding store cards altogether. Store-branded credit cards are notorious for charging extremely high interest rates.  If you ever need to carry a balance, you’ll want to stay away in favor of a card with a lower APR, and ideally a 0% intro APR offer.  Beyond that, many people shop at the store that’s most convenient for them at any given moment.  They don’t always return to the same place. For convenience shoppers, it can make sense to choose a credit card that offers a high level of rewards on all purchases – regardless of where you shop.

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