Tag: Walmart credit card

Credit Cards, Reviews

Walmart Credit Card and Walmart MasterCard Review

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The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Walmart Credit Card and Walmart MasterCard ReviewIf you are a regular shopper of Walmart, you’ve probably also seen their ads plastered in the store for the Walmart Credit Card.

Walmart offers two types of credit cards: the Walmart MasterCard offered by Synchrony Bank, which can be used wherever MasterCard credit cards are accepted; and the Walmart Credit Card, which can only be used at Walmart stores, Walmart Supercenters, Walmart Neighborhood Markets, Walmart.com, Walmart and Murphy USA gas stations, and Sam’s Clubs.

For heavy Walmart shoppers who can pay their balance in full each month, either card’s rewards might be sweet enough to justify signing up. Neither has an annual fee, and you’ll earn cash back in Walmart stores (3%). The regular Walmart Credit Card, however, can be especially appealing to those with low or fair credit scores who have trouble getting approved for other credit cards. In that case, the Walmart credit card can be a useful way to build credit, so long as you spend carefully and pay your bill in full each month.

But before you apply for a Walmart MasterCard or Walmart Credit Card, there are a few things you should be aware of as the Walmart Credit Card may not necessarily be the best choice for your spending habits.

Promotional Offers and Rewards

Dangling a sign-up bonus is a clever way to entice shoppers to sign up for the credit card at checkout. But given how high retail credit card interest rates can be, it’s never a good idea to sign up for a card because of the sign-up reward alone. The Walmart MasterCard and Walmart Credit Card are not exceptions. Unless you’re able to use and pay off your card in full each month, the cards’ painfully high interest rates (we’ll get to that later in this review) can easily eat away at any tangible cash back or sign-up bonus offers.

Walmart offers different promotional offers for cardholders and new accounts throughout the year.

Weak Sign-up Bonus

Weak Sign-up Bonus

Currently, Walmart is offering a one-time 10% discount on purchases if you are a new cardholder. Before you get too excited, there’s a caveat: it’s only good on purchases up to $250 because there’s a $25 limit on the discount. It may also be confusing to new cardholders as it says “10% discount,” but you don’t actually get a discount at the register. Instead, it’s applied later as a statement credit.

To take advantage of this discount, you must make a purchase on the same day you are approved for your new credit card. The discount cannot be used for cash advances, gift cards, money orders, or gas purchases.

If you don’t receive immediate approval at a kiosk or online at Walmart.com, but are later approved after the company does more research into your credit history, you will receive a 10% certificate in the mail with your new credit card package. This offer is valid until April 30, 2017.

3-2-1 Save Rewards Program

The 3-2-1 Save Rewards Program allows you to save 3% on Walmart.com purchases, 2% at Murphy USA and Walmart gas stations, and 1% at Walmart and anywhere your card is accepted if you are Walmart MasterCard holder.

If you’re a heavy Walmart shopper, their 3-2-1 rewards program might be just tantalizing enough to justify signing up for their credit cards. There really isn’t another credit card on the market that can get you a 3% return at Walmart; however, there are certainly other cash back credit cards for people who shop at a range of supermarkets looking for a wider range of benefits.

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The American Express Blue Cash Everyday Card, for example, has no annual fee and gets you 3% cash back at all supermarkets. However, if you do your grocery shopping at a store like Walmart or Target that is not specifically a stand-alone supermarket, you will only early 1% cash back. You also get 2% back on gas and 1% on everything else. So if you’re not a heavy Walmart shopper, the Blue Cash Everyday Card may be a better idea.

Walmart Credit Card and Walmart MasterCard holders are automatically enrolled in Walmart’s 3-2-1 Save Rewards Program. Walmart Business and Community accounts are not eligible.

You are eligible to earn these rewards as long as your account is open and in good standing, and there are no limits on the rewards that can be earned. Rewards never expire, and you can check your balance by logging in to your account here.

These savings are paid as a statement credit each month on net purchases after adjusting for any possible returns. Cash advances, quick cash advances, fees, and interest do not qualify for these savings rewards. Unfortunately, these benefits also cannot be stacked with the 10% discount for the first purchase for new cardholders.

The Fine Print

The Walmart Credit Card and Walmart MasterCard do not have an annual fee. However, the interest rate on the Walmart Credit Card is where it gets scary. The current APR is 23.15% based on the prime rate plus 19.65% and is subject to change as the prime rate fluctuates. The Walmart MasterCard interest rates range from 17.15% to 23.15%, depending on your creditworthiness.
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You can avoid paying interest on your charges by paying your entire balance in full every month. Your due date will be at least 23 days after the close of each billing cycle.

Other fees are fairly standard. Late payment fees are up to $37. There is a foreign transaction fee of 3% on the Walmart MasterCard, which means you definitely don’t want to rely on this card overseas. Cash advances for the same card cost $5 or 3%, whichever is greater. The interest rate for cash advances ranges from 20.15% to 26.15%.

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Applying for the Walmart Credit Card

You can apply for a Walmart Credit Card or Walmart MasterCard at any Walmart store register or jewelry kiosk, or online at Walmart.com. When you choose to apply, Synchrony Bank will pull your credit score and look at other factors, like your income level, debt level, employment, and more.

Applying for the Walmart Credit Card is pretty simple, and most of the time you can get an instant answer. But like any other credit card application, applying for a new card does require a hard pull on your credit, which will ding your credit score.

There is no preset credit score requirement listed to qualify. But many cardholders report qualifying for this credit card with a low credit score. The high interest rate is also an indicator that those who are working to build credit may qualify.

Applying in-store and being approved means you will receive a Temporary Shopping Pass that is only good for 24 hours in that particular Walmart store location.

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Pros and Cons

Pro: There’s no annual fee to worry about.

Con: A high interest rate. Carrying a balance on your account will quickly outweigh the savings benefits of this credit card.

Pro: No cap on regular rewards. You can earn as many rewards as you want for your purchases.

Con: Rewards cannot be stacked with other offers, like the 10% discount for new cardholders.

Pro: Those with low credit may be able to qualify and use this card for everyday purchases to help improve their credit score.

Con: Because there are so many stores and so many items, having a Walmart Credit Card could be a nasty temptation if you don’t have a handle on your finances.

Other Rewards Cards

The Walmart Credit Card limits you to purchases only at Walmart stores, Walmart Supercenters, Walmart Neighborhood Markets, Walmart.com, Walmart and Murphy USA gas stations, and Sam’s Clubs. This is why store cards may not be the best choice if you are looking to earn rewards. But even if you qualify for the Walmart MasterCard so you can use it to save on purchases at locations other than Walmart, there are still better rewards credit cards available.

Citi Double Cash – With the Citi Double Cash card, you’ll earn 1% cash back on purchases, just like the Walmart MasterCard. But with this card, you’ll get another 1% cash back when you pay off your credit card statement. Plus, the Citi Double Cash card has no annual fee. But, you can use this card to earn rewards at superstores and warehouse stores like Walmart and Target.

Discover it – The Discover it credit card gives 1% cash back, but you can also earn 5% cash back in revolving categories each quarter, up to $1,500 of purchases. For the first quarter of 2017, the categories are gas stations, ground transportation, and wholesale clubs. The second quarter of 2017 includes home improvement stores and wholesale clubs. Also, Discover it matches all of your cash back, dollar for dollar, at the end of the first year.

American Express Blue Cash Everyday Card: The American Express Blue Cash Everyday Card, for example, has no annual fee and gets you 3% cash back at all supermarkets. However, if you do your grocery shopping at a store like Walmart or Target that is not specifically a stand-alone supermarket, you will only early 1% cash back. You also get 2% back on gas and 1% on everything else. If you’re not a heavy Walmart shopper, the Blue Cash Everyday Card may be a better idea.

Who Will Benefit Most from the Walmart Credit Card?

While store cards are not usually a good idea for staying on budget, the Walmart Credit Card can be used for things like groceries and household necessities. The card may also be good for someone who is looking to rebuild their credit and can’t qualify for other credit cards as the required credit score to qualify for a Walmart Credit Card is typically low, although a specific score needed is not stated on their website.

On the other hand, it’s worth being cautious if you decide to apply for the Walmart Credit Card. With its high interest rate, carrying a balance will do more harm than good.

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Earning Cashback

Walmart Credit Card: Special $25 Holiday Offer Too Good to Be True?

Advertiser Disclosure

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Walmart wants you to spend a lot this Holiday season. If you turn on a television, chances are that you will see Walmart ad. One of the most prominent commercials is for the Walmart Credit Card. You can save $25 if you apply for a credit card and spend $75 on the same day. In addition, you can get another $10 when you make a second purchase of at least $75 within 60 days of opening the account.

This seems like easy money: you are going to go shopping anyway, so why not apply for the card and take advantage of the offer?

How to make the offer work for you

The good news is that there is no annual fee. If you pay your statement balance in full, then you avoid interest charges and will truly be getting a good deal. If you save $25 on a $75 purchase, then you are getting a 33% discount, which is a great deal.

However, the credit card company is betting that you will do a few things wrong, and then they can make a lot of money.

Traps to Avoid

The credit card company is betting that you will:

  1. Spend more money than you planned. When people spend on plastic, they tend to spend more than if they use cash. Years of behavioral studies have proven this to be the case!
  2. Not be able to pay the balance in full. And this is where the Walmart credit card becomes obscenely, ridiculously expensive. The interest rate on purchases is 22.9%, regardless of your credit score. If you have a perfect 850, or a 600, you will be paying the same 22.9% interest rate.

Most people end up spending more than they plan on spending, and then they just pay the minimum due and rack up a lot of interest. Let’s imagine that you take out the credit card, and you end up spending $400. You receive a discount of $25, and end up with a balance of $375. If you only pay the minimum due, it will take you 18 months to pay off the balance and you will end up paying $71 of interest. So, the bank is betting that you will end up paying more interest than your $25 sign-on bonus.

In addition, the bank hopes that you do one of the following:

  • Pay late, which can cost you up to $35 each time you are late
  • Travel overseas and use you card, when they will charge you 3%
  • Use the card for a cash advance. When this happens, they charge you an up-front fee of 3% (or $5, whichever is greater). The interest rate will also be higher, at 25.90%. And there is no grace period, which means that interest starts accruing right away.

Are there better deals out there?

promo-cashback-halfIf you are looking for a cash sign-on bonus, and you plan on spending $500 or more, then you could get a better bonus with other credit cards. For example, Chase Freedom is offering a $150 sign-on bonus if you spend $500 in the first 90 days.

And if you are just looking to maximize cash back from your regular monthly spending, you should definitely look somewhere else. Which card to sign up for depends completely upon how much you spend, and in which categories. You can use our Cash Back calculator and marketplace to find the best deal for your situation.

But, like Walmart, this is only a good deal if you can safely afford to pay off the balance in full. Although the interest rate at Chase is lower than Walmart, you can still end up paying more interest that you earn in cash back quickly. 

How to Get the Walmart Credit Card

If you decide that the Walmart credit card is for you, there are two ways that you can get the deal: online and in the store.

If you want to get the deal online:

  1. Apply online here. You will need to create an online ID first
  2. Make a single purchase of at least $75 at Walmart.com. Make sure it is a single purchase, and it cannot include gift cards, gas, money orders, or cash advances).

Within 1-2 billing cycles, you will see the $25 credit on your statement.

If you want to apply for the credit card in the store, you will apply at the cash register. You will apply for the card and then complete the purchase of at least $75 when you check out. Within 1-2 billing cycles, the $25 credit will be applied to your account.

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