In this comprehensive guide, we will delve into the Walmart credit cards, offering a fresh perspective on what they bring to the table in 2023. we’ll also consider the evolving credit card landscape to provide valuable insights. Whether you’re a seasoned Walmart shopper or just exploring your credit card options, we’ll cover what these cards offer, who they’re suitable for, approval odds, and much more.
Walmart’s Credit Card Offerings
Walmart collaborates with Capital One to provide two distinct credit cards: the Walmart Rewards Mastercard and the Walmart Store Card. The key difference lies in where they can be used.
1. Walmart Rewards Mastercard
The Walmart Rewards Mastercard is accepted not only at Walmart but also anywhere Mastercard is accepted, which essentially means it’s accepted at most places where credit cards are welcome. When you apply for a Walmart credit card, you are typically applying for the Walmart Rewards Mastercard. Capital One reviews your application and credit history to determine your eligibility for this card. If you don’t meet the criteria for the Mastercard, you’ll be considered for the Walmart Store Card as an alternative.
It’s worth noting that if you prefer the Walmart Store Card regardless of your credit history, you might have the option to choose it. However, the standard procedure is to evaluate eligibility for the Mastercard first and then consider the Store Card if necessary.
Walmart Rewards Mastercard Benefits:
- No Annual Fee: This Mastercard does not charge an annual fee.
- 5% Cash Back: Earn a generous 5% cash back on your purchases made at Walmart.com, whether online or through the Walmart mobile app.
- 2% Cash Back: Get 2% cash back on purchases within Walmart stores and at Walmart and Murphy USA gas stations.
- 2% Cash Back on Dining and Travel: Enjoy 2% cash back on dining and travel expenses.
- 1% Cash Back Everywhere Else: For all other purchases, you’ll receive 1% cash back.
In the first year of card membership, there’s a bonus feature that offers 5% cash back on in-store Walmart purchases when you use Walmart Pay, the mobile app for payments. This bonus is a fantastic incentive for frequent Walmart shoppers. After the first year, in-store purchases revert to the standard 2% cash back rate.
Cash Back Redemption:
You have several options for redeeming your cash back:
- Statement Credit: Offset your card’s purchases by applying your cash back as a statement credit.
- Check: Receive a check for your earned cash back.
- Walmart.com Purchases: Use your accumulated cash back to make purchases on Walmart.com, either in full or as partial payments.
- Gift Cards: Redeem your cash back for gift cards.
- Travel: Some redemption options may have minimum requirements, but travel redemptions are also available.
- No Foreign Transaction Fees: If you’re a frequent international traveler, rest assured that this card won’t hit you with extra charges for foreign transactions.
- Interest Rates: The annual percentage rates (APRs) for this card can vary based on your credit history. As of the time of writing, the potential APRs are 17.99%, 23.24%, or 26.99%. It’s essential to keep in mind that you can avoid paying interest by paying off your balance in full each month.
The Walmart Rewards Mastercard tends to be more accommodating to individuals with slightly lower credit scores. Capital One often works with applicants who may have less-than-ideal credit histories, making this card a favorable option for those looking to rebuild their credit. If your credit score is above 650, you have a good chance of approval. If it falls between 600 and 650, your approval may depend on other factors like the length of your credit history. If your score is below 600, approval may still be challenging.
2. Walmart Store Card
The Walmart Store Card, in contrast, can only be used at Walmart and Walmart.com. While it offers similar benefits to the Rewards Mastercard, it is more restricted in terms of where you can use it. Dining and travel expenses, for example, don’t earn the same cash back as they do with the Mastercard.
Walmart Store Card Features:
- Acceptance Limited to Walmart: This card can only be used for purchases at Walmart and Walmart.com.
- Interest Rate: The Walmart Store Card carries an interest rate of 26.99% at the time of writing. This is notably higher than the potential rates for the Walmart Rewards Mastercard.
- Cash Back Structure: Similar to the Mastercard, you can earn 5% cash back on Walmart.com purchases and 2% cash back on in-store Walmart purchases. However, the 5% cash back for in-store purchases only applies during the first year when you use Walmart Pay.
- No Dining or Travel Benefits: Unlike the Mastercard, this card does not offer cash back on dining or travel expenses.
A Closer Look at the Walmart Rewards Mastercard
Let’s focus on the Walmart Rewards Mastercard, as it is the card you are more likely to be approved for. This credit card provides several advantages for Walmart enthusiasts:
Maximizing Your Rewards:
- 5% Cash Back on Walmart.com: Whether you’re shopping online or using the Walmart mobile app for pickup or delivery, you’ll earn a generous 5% cash back. This perk applies to a wide range of products available on Walmart.com.
- 2% Cash Back at Walmart Stores: While the 2% cash back for in-store purchases may seem lower than the online rate, there’s a twist. During your first year with the card, if you use Walmart Pay for in-store purchases, you’ll also receive 5% cash back. This incentive encourages customers to adopt Walmart Pay as their payment method. Moreover, you have the option to acquire information about best cash back credit cards, enhancing the value of this resource and transforming it into a comprehensive guide.
- 2% Cash Back on Dining and Travel: The card offers 2% cash back on dining and travel expenses, providing you with additional savings on everyday essentials.
- 1% Cash Back Everywhere Else: For all other purchases, you’ll still receive 1% cash back.
Cash Back Redemption:
You have flexibility in how you can redeem your accumulated cash back:
- Statement Credit: Apply your cash back as a statement credit to offset recent card purchases.
- Check: Opt to receive a check for your cash back earnings.
- Walmart.com Purchases: Use your cash back to make future purchases on Walmart.com.
- Gift Cards: Redeem your cash back for gift cards from various retailers.
- Travel: Some redemption options may have minimum requirements, but you can also use your cash back towards travel expenses.
- No Foreign Transaction Fees: Travelers will appreciate the fact that this card doesn’t impose foreign transaction fees, making it a suitable companion for international trips.
- Interest Rates: The card offers competitive interest rates, with potential APRs of 17.99%, 23.24%, or 26.99%. To avoid paying interest, be sure to pay your balance in full each month.
While the Walmart Rewards Mastercard offers numerous advantages, it’s essential to keep certain factors in mind:
- Credit Limits: Your initial credit limit may be relatively low, potentially starting at $300, which may limit your purchasing power.
- Approval Odds: The card is more forgiving when it comes to credit scores compared to some other options. If your credit score is above 650, you’re likely to have a good chance of approval. If it falls between 600 and 650, approval may depend on various factors, including the length of your credit history. However, if your score is below 600, approval may still be challenging.
Evaluating the Walmart Credit Cards
Walmart credit cards provide a spectrum of advantages designed to enhance the shopping experience for Walmart customers. Nevertheless, it’s important to be mindful of certain factors and considerations when utilizing these cards for optimal financial management and value maximization.
Walmart Rewards Mastercard: Pros and Cons
- No Annual Fee: The card is free to own, saving you money from the start.
- Generous Rewards: The 5% cash back on Walmart.com purchases is a standout feature, especially for frequent online shoppers.
- Flexible Redemption: You have multiple options to redeem your cash back, making it easy to maximize your savings.
- No Foreign Transaction Fees: Travelers can use this card abroad without incurring extra charges.
- In-Store Cash Back Discrepancy: The differentiation between 5% online and 2% in-store cash back might feel unfair to those who prefer shopping in Walmart stores.
- Initial Credit Limit: Some cardholders may receive a relatively low credit limit of $300, limiting their spending capacity.
Walmart Store Card: A More Restricted Option
The Walmart Store Card offers similar benefits to the Mastercard but is limited to use at Walmart and Walmart.com. While it’s a viable option for Walmart loyalists, it lacks the versatility of the Mastercard.
The Walmart credit cards have their merits and are particularly attractive for avid Walmart shoppers. The Walmart Rewards Mastercard, in particular, offers substantial rewards, especially if you frequently shop online. However, it’s essential to weigh the benefits against the limitations, such as the lower cash back rate for in-store purchases.
Before applying, consider your credit score and spending habits to determine which card aligns best with your financial goals. If you’re looking for a credit card that provides valuable rewards for Walmart purchases and beyond, the Walmart Rewards Mastercard is a solid choice, especially if your credit score is in the mid-600s or higher.
Remember that responsible credit card usage involves paying your balance in full each month to avoid interest charges. With careful management, the Walmart credit cards can be a valuable addition to your wallet, helping you save on your Walmart purchases and beyond.
Frequently Asked Questions
What are the key differences between the Walmart Rewards Mastercard and the Walmart Store Card?
The Walmart Rewards Mastercard is accepted anywhere Mastercard is accepted, making it versatile for both Walmart and non-Walmart purchases. It offers 5% cash back on Walmart.com purchases and 2% cash back in Walmart stores (with 5% for in-store purchases during the first year using Walmart Pay). The card also provides cash back on dining and travel expenses. In contrast, the Walmart Store Card can only be used at Walmart and Walmart.com, offering the same cash back rates but without the dining and travel benefits.
How can I redeem the cash back I earn with my Walmart credit card?
You have several options for cash back redemption, including applying it as a statement credit to offset card purchases, receiving a check, using it for future Walmart.com purchases, redeeming it for gift cards, or applying it towards travel expenses. Some redemption options may have minimum requirements, while others do not.
Are there any foreign transaction fees when using the Walmart credit cards outside of the United States?
No, the Walmart Rewards Mastercard does not impose foreign transaction fees. This means you can use the card internationally without incurring extra charges, making it a convenient option for travelers.
What are the approval odds for the Walmart credit cards, and what credit score do I need to qualify?
The approval odds for the Walmart credit cards are generally favorable, particularly for the Walmart Rewards Mastercard. If your credit score is above 650, you have a good chance of approval. For scores between 600 and 650, approval may depend on factors like your credit history length. If your score is below 600, approval may be more challenging. Capital One often works with individuals with credit scores on the lower side, making these cards accessible to a broader range of applicants.
Is the Walmart Rewards Mastercard a good choice for me if I primarily shop in physical Walmart stores?
While the Walmart Rewards Mastercard offers excellent rewards for Walmart.com purchases and in-store purchases made using Walmart Pay during the first year, it provides a lower cash back rate (2%) for standard in-store purchases. If you primarily shop in physical Walmart stores and prefer higher in-store rewards, you may want to consider other credit card options. However, if you also shop online at Walmart.com, the 5% cash back on online purchases can still provide significant savings.