Is a Walmart Credit Card Worth It? Pros and Cons You Should Consider
The Walmart Credit Card, issued by Capital One, offers rewards specifically for Walmart shoppers. But is it the right card for you? Let’s break down the pros and cons to help you decide.
Pros
- Rewards on Walmart purchases: You can earn 5% back on in-store purchases when you use Walmart Pay for the first year, then 1% back thereafter. You’ll also earn 2% back on gas stations and restaurants.
- No annual fee: There’s no annual fee to weigh down the benefits.
- Other perks: The card offers purchase assurance for theft, loss, or damage in the first 90 days on eligible purchases.
Cons
- Lower rewards outside Walmart: Outside of Walmart and specific categories, the rewards rate is just 1%. You can find cards that offer better general rewards rates.
- High APR: The interest rate on the Walmart Credit Card can be high, so it’s important to pay your balance in full each month to avoid accumulating interest charges.
Who Should Get This Card
This card is a good fit for frequent Walmart shoppers who want to maximize their rewards on groceries and other Walmart purchases. If you typically pay your balance in full each month, the high APR won’t be a concern.
Alternatives to Consider
If you’re not a loyal Walmart shopper, you may want to consider a card that offers a higher baseline rewards rate on all purchases. For example, many cash back cards offer rewards rates of 1.5% or more on all purchases.
The Bottom Line
The Walmart Credit Card can be a valuable tool for Walmart loyalists, but it’s not the best choice for everyone. Weigh the pros and cons and compare it to other cards before you apply.