Walmart Rewards Credit Card Reviewed
Walmart is the biggest chain store in the world so it’s no surprise that it has its very own credit card, one that rewards you for all Walmart purchases, as well as money spent at Murphy USA gas stations, restaurants, and on eligible travel. It’s one of the better branded credit cards on the market, and it’s provided by Capital One (on behalf of Mastercard), one of the best credit card companies.
But how does the Walmart rewards Mastercard compare to other cash back reward cards and store cards?
- Type: Capital One
- Card Issuer: Mastercard
- Annual Fee: $0
- Regular APR: 17.99% to 26.99% Variable APR
- Foreign Transaction Fee: No
- Balance Transfer Fee: 3%
- Cash Advance Fee: 3%
- Rewards: Earn up to 5% cash back on eligible purchases
- Sign-up Bonus: N/A
The Walmart credit card offers up to 5% every time you spend money at Walmart.com or use the Walmart app, and there are also 1% and 2% cash back rates. There is no annual fee or foreign transaction fees, but you’ll pay 3% for cash advances and balance transfers.
Your credit limit will be determined by your credit score, as will your interest rate and your chances of getting the card in the first place. If you have a FICO score of more than 700, you stand a good chance of being accepted, as this store credit card is geared towards users with Good to Excellent credit.
Walmart Credit Card Rewards Program
All Walmart cardholders can get the following cash back tiers when they use their Walmart credit card:
- 5% on store purchases at Walmart.com and the Walmart app. Also includes grocery pickup and delivery.
- 2% cash back at Walmart stores, as well as gas stations, restaurants, and eligible travel purchases.
- 1% cash back on all other purchases (your card can be used anywhere Mastercard is accepted).
When you use your Capital One Walmart Mastercard with Walmart Pay, you’ll get 5% in Walmart stores for the first 12 months. All cash back and rewards can be redeemed at the checkout and for travel purchases, as well as statement credit and gift cards.
Benefits of the Walmart Card
In addition to the Walmart rewards scheme outlined above, cardholders can also secure the following benefits:
- Zero Fraud Liability: By law, cardholders cannot lose more than $50, but many cards, the Walmart card included, reduce this to zero. If anything happens to your card and account, you won’t lose a penny.
- Security Alerts: Capital One will send you alerts whenever there are issues with your account. As soon as your card is used for suspicious purposes, you’ll be warned.
- Mobile App: The Capital One mobile app can help you to better manage your money and control your credit account.
Bottom Line: Is the Walmart Card Right for You?
The Walmart credit card doesn’t have an enticing intro APR rate and it’s not good for balance transfers or travel rewards. It’s also lacking in the general rewards department and isn’t quite as generous as reward cards like the Citi Double Cash Card, American Express Blue Cash Preferred or Discover It Cash Back. However, it’s ideal for Walmart shoppers, with big rewards and a host of redemption purchases.
If you spend a lot of money at Walmart, and accumulate many Walmart.com purchases in particular, it’s worth adding this card to your shortlist and comparing it to cards offered by similar brands like Costco, Best Buy, Sam’s Club, and Target.
If you don’t have a credit history strong enough to qualify or prefer something a little simpler, look into the standard Walmart Store Card. This is a closed-loop card, which means you can’t use it anywhere else, but it offers great rewards on everyday purchases.
Alternatives to the Walmart Credit Card
If Walmart Mastercard isn’t quite what you’re looking for, but you still want a generous branded rewards credit card, take a look at these other options, all of which offer something a little different from equally big and popular US stores.
Costco Anywhere Visa Credit Card
Often said to be one of the very best retail store cards, the Costco Anywhere Visa is an open-loop card that has a rewards rate of between 1% and 4%, with the higher end offered for every dollar that you spend at gas stations. You can also earn 3% when you spend money at qualifying restaurants. But surprisingly, you will earn just 2% every time you make a purchase at Costco and Costco.com.
You will need to have a Costco membership to use the Costco Anywhere Visa credit card, and if you don’t, this is probably not the card for you. It does offer good rates for non-Costco purchases, giving 3% and 4% for some of these and 1% for the rest. However, you need an excellent credit score to apply and if you have such a credit score, there are many better cards available to you, including traditional reward credit cards like the Discover It Cash Back and the Chase Freedom Unlimited.
This card is best suited for Costco members seeking to earn a little extra cash every time they spend money at this wholesale store. It’s not ideal as a regular card, but it doesn’t need to be. There is no strict Welcome Bonus that requires you to spend a specific sum of money within 3 months. There is no annual fee taking your benefits away and offsetting your profits.
The Costco Anywhere Visa can simply sit in your wallet until you’re purchasing gas or shopping at Costco, and every now and then it will earn you a little money.
Amazon Prime Rewards Visa Signature Card
The Amazon Prime Rewards Visa Signature Card is one of the best branded credit cards out there and one that we have discussed several times, praising it for its Welcome Offer, which gives new members a $70 gift certificate, and its rewards, which give you up to 5% cash back when you spend at Amazon and Whole Foods.
A good credit score is enough to apply for the Amazon Prime Rewards Visa and unlock all of these great benefits. You will also need to be an Amazon Prime member, which comes with its own set of benefits and disadvantages, including fast shipping and an annual membership fee of $119.
One of the great things about this card is that the benefits don’t stop with Amazon and Whole Foods. It is a Visa Signature Card, which means it sits at the second-highest tier of the Visa pyramid and offers a great deal of benefits and rewards. Owning a Visa Signature Card means you will have automatic travel protection, accommodation perks, VIP offers, concierge bonuses, and more.
The Home Depot Credit Card
The Home Depot credit card has a couple of big pros and cons. Firstly, it’s a financing card, not a rewards card. Unlike many other cards in this category, the Home Depot credit card won’t give you cash back, or reward points every time you spend money in the Home Depot store.
However, it does offer 6-month interest-free financing on purchases of $299 or more and also offers a $100 discount if your first purchase is for $1,000 or more. In addition, there is no annual fee to worry about and if you have a good credit score you can get an APR of less than 18%.
To round off the benefits, this card is available to consumers with Fair credit scores or better and is one of the best options if your credit score is that low.