What the Walmart Credit Card Is

Walmart offers two credit cards through Capital One: the Walmart Rewards Card and the Walmart Rewards Card for Business. Both are standard Visa cards you can use anywhere, not just at Walmart. The consumer version earns cash back on purchases — 3% at Walmart and Walmart.com, 2% at gas stations and restaurants, and 1% everywhere else. There is no annual fee.

The business version works similarly but is designed for business owners and earns rewards on business purchases. Both cards report to the three major credit bureaus, so using either one responsibly can help build your credit history.

These cards are not the same as Walmart's store card, which only works at Walmart and Sam's Club. The Walmart Rewards Card is a Visa, so it works at any merchant that takes Visa.

Key Takeaways

  • The Walmart Rewards Card earns 3% cash back at Walmart, 2% at gas and restaurants, and 1% elsewhere, with no annual fee.
  • Capital One sets the credit limit and interest rate based on your credit history, and you can check your rate before you decide to proceed.
  • Cash back rewards are deposited as a statement credit each month and do not expire as long as your account stays open.
  • The card reports to credit bureaus, so on-time payments help build credit, but missed payments will lower your score.

Who Should Consider This Card

This card makes sense if you shop at Walmart regularly and want to earn cash back on those purchases. The 3% rate at Walmart is competitive, and the 2% at gas stations and restaurants covers everyday spending for many people. If you rarely shop at Walmart, the rewards are not strong enough to justify carrying another card.

The card is also worth considering if you are rebuilding credit. Capital One is known for working with people who have fair or limited credit history, and the card reports to all three bureaus. Responsible use — paying on time and keeping your balance low — will help your credit score over time.

If you already have a cash back card that earns 2% or more on all purchases, this card adds little value unless Walmart is a major part of your spending.

How to Understand the Interest Rate and Fees

The Walmart Rewards Card has no annual fee, which is standard for cash back cards at this tier. The interest rate (called the APR, or annual percentage rate) varies by person. Capital One will show you the range you may receive before you proceed — typically between 16% and 24%, though this varies. Your actual rate depends on your credit score, income, and credit history.

If you carry a balance, interest charges will quickly outpace any cash back you earn. A $1,000 balance at 20% APR costs about $200 per year in interest. The cash back on that same $1,000 in spending would be $10 to $30, depending on where you shop. This is why the card works best if you pay your full balance each month.

There are no other fees listed — no late fees, foreign transaction fees, or balance transfer fees are advertised. Read the terms Capital One sends you to confirm what applies to your account.

How Cash Back Rewards Work

Cash back is credited to your account each month as a statement credit. You do not receive it as a check or direct deposit. If your statement balance is $50 and you have earned $5 in cash back that month, your new balance will be $45. The rewards do not expire as long as your account remains open and in good standing.

You earn rewards on every purchase you make with the card, including online. The 3% rate applies at Walmart stores and Walmart.com. The 2% rate applies at gas stations (including Walmart fuel stations) and restaurants. Everything else earns 1%. If you are unsure whether a merchant qualifies for a higher rate, the 1% rate applies.

There is no cap on how much cash back you can earn, and there is no minimum spending requirement to keep the account active.

What Happens When You Miss a Payment

If you miss a payment, Capital One will report it to the credit bureaus after 30 days. A single late payment can lower your credit score by 50 to 100 points, depending on your current score. The damage is worst if your score is already high. If you miss a payment by 60 days, the damage is worse. If you miss a payment by 120 days, the account may be closed and sent to a collection agency.

If you fall behind, contact Capital One as soon as you can. Many card issuers will work with you on a payment plan or temporary hardship arrangement if you reach out before the account is severely past due. Waiting until the account is in collections makes recovery much harder.

On-time payments, by contrast, help your credit score. Payment history is the single largest factor in your credit score, so using this card responsibly is one of the most direct ways to build credit.

How This Card Compares to Other Options

The Walmart card's 3% cash back at Walmart is solid, but it is not the highest rate available. Some cards earn 3% or more on groceries, gas, or restaurants. The Chase Freedom Flex, for example, earns 5% on groceries (up to $1,500 per year, then 1%) and 3% on gas and restaurants. The American Express Blue Cash Everyday earns 3% on gas and transit, and 1% on everything else.

The difference is that those cards typically require good or excellent credit to get approved. The Walmart card is more accessible to people with fair credit or limited credit history. If you have been turned down for other cards, the Walmart card is worth considering.

If you shop only at Walmart and nowhere else, the Walmart store card (which only works at Walmart) sometimes offers promotional financing, like 12 months interest-free on purchases over a certain amount. The Walmart Rewards Card does not offer promotional rates, but it works everywhere.

Steps to Take Before You Proceed

Check your credit score first. You can see your score for free through your bank, your credit card issuer, or a service like Credit Karma or AnnualCreditReport.com. If your score is below 600, approval is less likely. If it is between 600 and 700, you have a reasonable chance. Above 700, approval is very likely.

Look at your current credit cards and ask whether you need another one. Each new card process triggers a hard inquiry, which lowers your score by a few points for a few months. If you already have two or three cash back cards, adding a fourth may not be worth the temporary score dip.

Read the terms and conditions Capital One sends you before you set up the card. The terms will spell out the APR, fees, and rewards structure specific to your account. If anything is different from what you expected, contact Capital One before you use the card.

Frequently Asked Questions

Can I use the Walmart Rewards Card at Sam's Club?

No. The Walmart Rewards Card is a Visa and works at any merchant that takes Visa, but Sam's Club only accepts their own card or the Sam's Club Mastercard. If you shop at both Walmart and Sam's Club, you would need a separate card for Sam's Club purchases.

What is the credit limit?

Capital One sets your credit limit based on your credit history and income. You will not know your limit until you are approved. You can request a higher limit after you have had the card for a few months and made on-time payments.

Do I have to shop at Walmart to use this card?

No. The Walmart Rewards Card is a Visa and works anywhere Visa is accepted. You earn the highest cash back rate (3%) at Walmart, but you earn 1% to 2% everywhere else, so the card is useful even if you do not shop at Walmart often.

Can I transfer my balance from another card?

The Walmart Rewards Card does not advertise balance transfer options. If you need to move a balance from another card, you would need to contact Capital One directly after approval to ask whether they offer that service on your account.

How long does approval take?

Capital One typically gives you a decision within minutes of submitting your information online. If you are approved, you can use your card number when ready for online purchases, and a physical card will arrive in the mail within 7 to 10 business days.