Store credit cards are often notorious for being inflexible when it comes to their points earning and rewards redeeming capabilities. Instead of such cards, most financial experts suggest using more versatile general rewards like those from Discover, Capital One, Chase, and more. However, those things change with the entry of the Walmart credit card: the Capital One Walmart Rewards card.
Intro Bonus: 5% cashback for the first year of card account opening
Regular APR: 17.99%, 23.24%, or 26.99%, based on your creditworthiness
Credit Score: Fair
Annual Fee: $0
- It can earn 5% back on purchases made on Walmart.com and the Walmart app.
- There is no annual fee.
- The card can also earn 2% back on restaurants, travel, Walmart stores, and Walmart & Murphy USA Fuel Stations.
- The World Elite Mastercard version offers additional benefits and perks.
- The points can be redeemed for various kinds of rewards.
Walmart Credit Card Review:
Capital One Walmart Rewards card is different from most retail store cards being offered in the market. You can use it everywhere where Mastercard is accepted, and it provides a reasonable reward structure and a wide choice for rewards redemption. Most of all, it charges $0 annual fees, so you can enjoy it without expecting charges yearly.
The Capital One Walmart Rewards card doesn’t have the conventional welcome bonus. Instead, it offers a 5% cashback for the first 12 months when you use the card in Walmart stores. After this, the card can only accumulate 2% back in the said location. Meanwhile, it earns an unlimited 5% back on Walmart.com and in the Walmart app, including Grocery Pickup and Delivery; 2% back on restaurants, travel, and Walmart & Murphy USA Fuel Stations; and 1% back everywhere else Mastercard is accepted. This is where you’ll spot the minimal flaw of this card.
Given the general nature of Walmart as a physical store, many of its customers (and the target market of the card) are those who are frequent shoppers at Walmart Stores. However, instead of focusing the biggest category rate on such people, the card grants the 5% back rate on its online store purchases. As said before, you can still earn 5% back by shopping at Walmart stores, but it can only last for a year. After this, you will only get 2% back each time you visit the shop. This means if you are used to the traditional in-store shopping at Walmart, the cashback earning can be less impressive.
Nonetheless, the fact doesn’t make the Walmart credit card less attractive. It can still be a good shopping tool since most credit cards refuse to include Walmart in their grocery shopping categories. And given the world’s situation today, online shopping can be worth a try. Moreover, the 2% back rate also covers other places frequently visited by consumers. The points do not expire (as long as your account is open) and are worth 1 cent each. So, if you will use it purely on Walmart.com and in the Walmart app to earn 5% back, you’ll get 60,000 points for $1,000 purchases. That is equal to a $600 cash value.
You also don’t want to miss the rewards capability of this Walmart credit card. Unlike other store credit cards with very, very limited options for redemptions such as JCPenney, Ulta, Kohl’s, and more, the Capital One Walmart Rewards card lets you enjoy the points in various ways. Not only can you use the points to redeem for gift cards from Walmart or other retailers, but you can also use them to redeem for purchase, during checkout at Walmart.com, or as an account credit. You can also use the points to redeem for car rentals, flights, and hotels.
The Walmart credit card also comes with other benefits that will surprise you, given it is a store card that charges no annual fees. Some include extended warranty, price protection, purchase assurance, and Mastercard ID Theft Protection. The set of benefits you can get from this Walmart credit card can even go further if you are approved for a World Elite Mastercard version. By having the higher version of the card, you can get cell phone protection, World Elite Mastercard Concierge, identity fraud expense reimbursement, travel assistance services, car rental insurance, travel accident insurance, trip interruption/cancellation insurance, baggage delay insurance, and lost/damaged luggage insurance.
On the other hand, just like the other store cards we reviewed, the Capital One Walmart Rewards card can have a high regular APR. It can be 17.99%, 23.24%, or 26.99%, based on your creditworthiness (both for purchases and transfers), while the APR for cash advances comes at a fixed 26.99%. It also has a late payment penalty fee that can go up to $39. Yet, if you use the card appropriately, you can prevent these interests and penalties.
So, is this Walmart credit card for you? For most people, our financial experts suggest it. Walmart is one of the top shopping spots for most people when shopping for their groceries monthly or weekly. Using the card can help you earn points at a very decent rate. Also, we love how flexible its redemption options are, so you can be sure that the points can benefit you in multiple ways.