Capital One® Walmart Rewards™ Card – Review

The Capital One® Walmart Rewards™ Card, also known as the Capital One Walmart Rewards Mastercard, is a cash-back credit card with no annual fee.

With a rewards program that’s quite generous for Walmart shoppers, plus anyone who spends heavily at restaurants, fuel stations, and travel merchants, the Walmart Rewards Card is pretty versatile. If you’re in the market for a new cash-back card, I’d recommend taking a close look (while not foreclosing other options).

Here’s what you need to know about it.

What Is the Capital One Walmart Rewards Credit Card?

The Capital One Walmart Rewards Card is designed for regular Walmart shoppers, especially those who frequent Walmart.com. It’s also backed by one of the most popular credit card issuers around (Capital One). It’s similar to but distinct from the Walmart Rewards Card, a store credit card that only earns rewards on Walmart purchases.

With the Capital One Walmart Rewards Card, purchases at Walmart.com and the Walmart app, including groceries and sales marked for in-store pickup, earn unlimited 5% cash back.

You earn unlimited 2% back for purchases made inside Walmart stores and at eligible restaurants, fuel stations, and travel merchants — making this a solid contender for one of the best gas credit cards as well.

All other purchases, including purchases at Sam’s Club locations and SamsClub.com, earn unlimited 1% cash back.

Beyond the rewards program, this card’s benefits are nothing to write home about, and the interest rates are on the high side. But the underwriting requirements are relatively loose, so this is an ideal first credit card for Walmart enthusiasts looking to build their credit or improve their credit.

Key Features of the Capital One Walmart Rewards Credit Card

These are the most important features and perks of the Capital One Walmart Rewards Credit Card.

Earning & Redeeming Cash-Back Rewards

The Capital One Walmart Rewards Card has a three-tiered cash-back program:

• Online purchases made at Walmart.com and through the Walmart app earn unlimited 5% cash back (rewards rate). That includes grocery pickup purchases and other purchases marked for in-store pickup at any Walmart store. This rate applies to home delivery purchases as well.
• Purchases made in select bonus categories earn 2% cash back. That includes purchases at Walmart stores, fuel stations, and with eligible restaurant and travel merchants.
• All other purchases, including those made at Sam’s Club locations, earn unlimited 1% cash back.

You automatically receive cash back at the end of the billing cycle. Cash back does not expire as long as your account remains open and in good standing.

Make the most of your cash back by redeeming it for statement credits against eligible purchases made during the prior 90-day period.

First-Year Bonus on Walmart Pay Purchases

During the first 12 months your account is open, you can earn 5% cash back on eligible in-store Walmart purchases made using Walmart Pay, the company’s mobile contactless payment app. There’s no limit to how much you can earn during the promotional period.

Possibility of Promotional Interest-Free Period

The Capital one Walmart Rewards Card doesn’t advertise a regular introductory interest-free, low-APR, or balance transfer promotion. However, its terms do mention special promotional periods that can eliminate interest charges for as long as 24 months at a stretch.

The interest-free period may apply to specific purchases or any purchases made while the promotion is active, depending on the terms of the promotion and Walmart’s discretion. It doesn’t necessarily apply only at sign-up, making it more versatile than standard introductory interest-free promotions.

Additional Card Benefits & Capabilities

This card has some other benefits and capabilities worth noting, including easy card lock and unlock through the Capital One mobile app, customizable security alerts, and app-based bill pay.

Important Fees

This card has no annual fee or foreign transaction fee.

Credit Required

This card requires an average or better credit score.

Serious blemishes in your credit history, such as recent personal bankruptcies, are likely to disqualify your application; minor issues may not. This makes the Capital One Walmart Rewards Card an ideal credit card for consumers in the process of mending their credit. It’s also appropriate for people with good credit or better.

Advantages of the Capital One Walmart Rewards Credit Card

These are the most important advantages of the Capital One Walmart Rewards Card.

• No Annual Fee. The Capital One Walmart Rewards Card doesn’t charge an annual fee. This is great news for shoppers who want to keep this card in their wallets without paying for the privilege.
• 5% Cash Back at Walmart.com. Frequent Walmart.com shoppers will love this card’s unlimited 5% cash back on the retail giant’s website. The same rate applies to grocery purchases and purchases marked for in-store pickup, so it’s perfect for bulky or heavy items for which shipping is costly or impractical.
• Potential for a Long Introductory APR Period. Although it doesn’t have a regular interest-free or low APR introductory promotion, this card does have periodic promotions that eliminate interest across the board or on specific purchases for as long as 24 months at a time. That’s great news for cardholders planning big-ticket purchases that they can’t afford to pay off right away.
• Loose Underwriting Requirements. This card is available to applicants with average or better credit. Although your approval is never guaranteed, you stand a better chance of making it through the application process with this card than with better-known cash-back cards that require excellent credit.
• Bonus Cash Back on Restaurant, Travel, and Fuel Purchases. This card earns 2% cash back on restaurant, fuel, and travel purchases, making it a solid companion for diners and travelers without more generous travel rewards credit cards in their wallets.
• No Penalty APR. The Capital One Walmart Rewards Card doesn’t charge penalty interest on past-due payments. If you occasionally miss your statement due date due to irregular cash flow or unexpected expenses, you don’t have to worry about getting locked into a sky-high rate indefinitely.

Disadvantages of the Capital One Walmart Rewards Credit Card

Consider these drawbacks before applying for a Capital One Walmart Rewards Card.

• No Early Spend Bonus. Other than the restrictive first-year Walmart Pay bonus, this card doesn’t have an early spend bonus. That’s a significant oversight relative to some other premium retail credit cards and most general-purpose cash-back credit cards as well.
• No Regular Interest-Free Period. Unlike many competing cards, the Walmart Rewards card doesn’t have a regular 0% APR promotional period for purchases or balance transfers. It does offer the possibility of special interest-free periods on select purchases, but purchase size minimums and other restrictions may apply.
• No Bonus Cash Back on Purchases Made at Sam’s Club Stores. This card earns just 1% cash back on purchases made at physical Sam’s Club stores. If you prefer to shop in person at the country’s second most popular warehouse store, you won’t get any more out of this card than any other standard-issue cash-back credit card — and possibly less. Several higher-earning cards such as the Capital One Quicksilver Cash Rewards Credit Card offer unlimited 1.5% cash back on all eligible purchases.

How the Capital One Walmart Rewards Card Stacks Up

Before you apply for the Capital One Walmart Rewards Credit Card, see how it compares to what may be its best direct competitor: the Target RedCard Credit Card.

Final Word

The Capital One® Walmart Rewards™ Card is a great entry-level cash back credit card for regular Walmart shoppers, frequent diners, and frequent travelers.

Despite its relatively loose underwriting standards, the Walmart Rewards Card isn’t for everyone. If you don’t qualify for this card, look instead to the Walmart Credit Card, a store credit card with a similar rewards scheme.

The Walmart Credit Card isn’t backed by Mastercard or any other credit card payment network, so you can’t use it at merchants other than Walmart, but it’s nevertheless a great rewards-bearing vehicle for folks looking to build credit.

And, considering you can buy pretty much anything at Walmart or Walmart.com, it’s versatile enough.