Every retailer seems to offer its own credit card nowadays, each with its own special benefits. How are you supposed to know which to choose and whether using that card is really worth it?
Unfortunately, many of these cards come with a high-interest rate and low minimum payments that pretty much offset any discounts in the end.
Recently, Walmart has made some changes to rebrand its rewards program, ended a partnership with Synchrony Bank, and is now partnering with Capital One to update their card offerings.
So let’s take a look at the Capital One Walmart Rewards® Mastercard® (set to release later this year) and the Walmart Rewards™ Card to see how they stack up.
The CapOne Walmart Rewards Card and Walmart Rewards Card
| ||CapOne Walmart Rewards Card|| Walmart Rewards Card |
|Main Cash Back Benefits|
- 5% at Walmart.com and Walmart app, including Grocery Pickup and Delivery
- 2% at Walmart Stores, Walmart and Murphy USA Fuel Stations, Restaurants, and Travel
- 1% Anywhere Mastercard® is accepted
- 5% with Walmart Pay for 12 months on in-store purchases. *Welcome offer for approved applicants*
- 5% at Walmart.com and in the Walmart app, including Grocery Pickup and Delivery
- 2% at Walmart Stores, Walmart, and Murphy USA Fuel Station
- 5% Walmart Pay for 12 months on in-store purchases. *Welcome offer for approved applicants*
|Annual Fee||$0|| $0|
|APR||17.99% – 26.99% (variable)|| 26.99% (variable)|
|Late Fees / Penalties|| Up to $39|| Up to $39|
Walmart has 2 branded cards, which have virtually the same benefits with just a few main differences.
The CapOne Walmart Rewards card can essentially be used anywhere you like — meaning that you’ll get rewarded for purchases made virtually anywhere Mastercard is accepted (albeit marginally, at 1%). The standard Walmart Rewards card is only accepted at Walmart stores, Walmart.com, and Walmart and Murphy USA gas stations.
Another difference: some CapOne Walmart Rewards cardholders may receive a lower APR depending on account type. And finally, CapOne Walmart Rewards cardholders are eligible for cash advances (with a variable APR), while standard Walmart Rewards cardholders are not eligible.
Since the CapOne Walmart Rewards card is slightly more difficult to qualify for, some applicants will automatically receive the standard Walmart Rewards card, which targets consumers with low to fair credit scores looking to build their credit. You can find out more about the application process below.
Additional Features of the Walmart Rewards Card Options
Below are additional perks offered with both Walmart cards:
- No annual fee
- Free online FICO® credit score checks anytime by signing up to electronic statements
- Other companies charge up to $20 to check your score, so this could be a handy advantage
- Fraud protection
- Access to special 6-12 month financing options
Fees and Drawbacks of the Walmart Rewards Cards
There are a few cons to consider before applying for either card.
Fees: Here are the current fees/penalties that you might incur. These include (but are not limited to):
|CapOne Walmart Rewards Card||Walmart Rewards Card|
|APR||17.99% – 26.99% (variable)||26.99% (variable)|
|Cash Advance APR||26.99% (variable)||N/A|
|Cash Advance Transaction Fee||$10 or 3% of each cash advance amount (whichever is greater)||N/A|
|Late Fee||Up to $39|| Up to $39|
|Foreign Transaction Fees|| 0%|| N/A|
Other drawbacks certainly apply to this card. For example, cardholders can only receive 2% cash-back for using their cards at a Walmart store. That being said, if you visit physical Walmart stores frequently, the statement credit could quickly add up.
If your credit history isn’t strong enough for the CapOne Walmart Rewards card, you can’t earn cash-back outside of Walmart (which limits the card’s usefulness). But, again, there’s no annual fee. So even using it to pay at Walmart and approved gas stations can mean money back each month, especially if you spend there often!
Even though there’s no annual fee, the CapOne Walmart Rewards card and the standard Walmart Rewards card have high APRs and late fees. These can add up quickly and put you in a serious bind. Of course, you can avoid these fees by paying the balance in full each month.
Finally, if you’re still working on building your credit, you’ll probably be given a low credit limit, which means you won’t be able to spend much on the card. But if you use your credit card responsibly, your credit limit and credit score could increase.
Hot Tip: For additional options, check out our guide to the best credit cards to use at Walmart.
Applying for the CapOne Walmart Rewards and Walmart Rewards Cards
Potential cardholders technically apply for the CapOne Walmart Rewards card and the standard Walmart Rewards card at the same time to see which one (if either) they will qualify for.
As mentioned above, the CapOne Walmart Rewards card has slightly higher qualification criteria. For this reason, those who do not qualify for the Capital One card may still qualify for the Walmart Rewards card instead.
That being said, the general consensus is that the Walmart cards are usually intended for individuals with poor or limited credit histories. In short, Walmart likely anticipates recent or past flaws in your credit.
You can apply for the CapOne Walmart Rewards card and Walmart Rewards card online, at any store register, or at the jewelry kiosk.
Upon credit review, some applicants will be approved instantly. However, some applications may need further review, resulting in a 7-10 day waiting period.
Hot Tip: Looking for an easy instant approval credit card that offers immediate access to your new card number? Click here for more instant approved credit cards.
Walmart credit card options have offered marginal sign-up bonuses that have been variable in the past.
In July 2020, the introductory offer was earning 5% back in Walmart stores for the first 12 months when you use your CapOne Walmart Rewards card with Walmart Pay.
Additional Walmart Card Options
What happens if you are denied both the CapOne Walmart Rewards card and the Walmart Rewards card? In that case, you still have another option: the Walmart MoneyCard, a reloadable prepaid Visa or MasterCard from Green Dot Bank.
The Walmart MoneyCard earns 3% cash-back at Walmart.com, 2% cash-back at Murphy USA and Walmart fuel stations, and 1% cash-back at Walmart stores — up to $75 each year.
You’ll get access to special discounts and sales notices, you don’t need a bank account to use the prepaid card, and you can even have your paycheck direct deposited. However, there are monthly fees for using the Walmart MoneyCard. The monthly fees are waived if you deposit $1,000 or more to your account each month. Additionally, you’ll also receive 2% annual interest on up to $1,000 in your free savings account.
Logging in and Managing Your Walmart Credit Card Account
After you are issued a credit card, you can log in and manage your Walmart card account here.
Options within the online management platform include:
- View your statement
- Pay your bill
- Set up account alerts
- Opt for paperless statements
Alternative Rewards Credit Cards (Our Recommendations)
There are a number of other excellent rewards-based cash-back credit cards out there that would likely earn you more than the Walmart cards.
No complicated fee’s or structures to understand with these rewards cards:
Alternatively, if you love to travel (or want to travel more) you could apply for the Chase Sapphire Preferred® Card that is known as one of the best (if not the best) travel rewards cards.
The welcome offer is worth over $750 when redeemed for travel expenses (flights, hotels, etc.) through Chase’s travel portal. Earn 1 point/$1 spent at Walmart stores and outside of Walmart, 5x points on travel purchased through Chase Ultimate Rewards, 3x points on dining, and 2x points on all other travel purchases
These Chase points are extremely valuable when used correctly!
If you regularly buy groceries or other items at Walmart.com and Walmart or simply fill your tank at Walmart or Murphy USA, then a Walmart credit card can be valuable. That is, if you’re a responsible cardholder.
As long as you pay your entire balance on time each month to avoid the high APR and late fees, you’re okay. Otherwise, your penalties could wind up seriously outweighing your benefits.
Nonetheless, there are certainly other cash-back rewards credit cards out there that can earn you a lot more on your everyday spending!