Walmart Credit Card: Our In-Depth Review

May 26, 2019 by  
Filed under Credit card

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Walmart is the country’s largest retailer, and in addition to accepting Visa, Mastercard, Discover, and American Express payment options, it also accepts its own credit card. The only places that accept the Walmart credit card are Walmart stores, Walmart.com, Murphy USA gas stations, and Sam’s Club. In this review, we will discuss the various features of the Walmart credit card, discuss its pros and cons, and then compare it to similar products on the market today so you can more easily decide if the Walmart Credit Card (or another option) is the right choice for you.

At the end of this review, we will rate the Walmart credit card out of five stars, and we will compare this option to the others listed below.

What Is the Walmart Credit Card?

With the Walmart credit card, you receive 3% cash back on purchases from Walmart.com, including items you order online and then pick up in the store. You also earn 2% cash back on purchases from Murphy USA and Walmart gas stations. Further, you earn 1% cash back on all other purchases, including those from actual Walmart stores. Based on the reward features, this is a great option if you shop frequently on Walmart.com.

Features

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Two nice additional features of the Walmart credit card include the ability to purchase online Walmart items from the Walmart app and the $25 statement credit after making a minimum of $25 purchase in your first 24 hours with the card (either in a store or online).

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Credit Requirements

The Walmart credit card is accessible to almost anyone. Those with poor credit will probably still qualify, and you do not need to worry about being in “excellent” credit standing.

How It Compares

We picked a few similar products available on the market to see how they compare to the Walmart credit card.

Card Preview

Card Name

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TARGET REDCARD CREDIT CARD

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COSTCO ANYWHERE VISA CARD BY CITI

Silver mastercard credit card

DISCOVER IT CARD

Walmart Credit Card

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Walmart logo

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REWARDS PROGRAM

The Walmart credit card offers very little in terms of rewards. The highest earnings possible are from Walmart.com, where you can earn 3% per purchase. Further, you can earn 2% from buying gas at Murphy USA or Walmart gas stations. You only earn 1% when you make purchases at a physical Walmart store. All cash back is redeemed in the form of a credit on your next statement. For example, if you were to earn $5 in rewards, then this would be automatically credited on next month’s billing statement.

We have rated the Walmart rewards program as two out of five stars for its inflexibility and few rewards from Walmart store purchases. Further, we do not like that cash back is automatically converted into credit applied to the next month’s statement.

CREDIT REQUIREMENTS

The Walmart credit card does not require good or excellent credit. If you are new to credit cards or have poor credit, you will still probably qualify for the Walmart credit card. For the low requirements and accessibility to people of all credit types, we have given this section five out of five stars.

ANNUAL FEE

There is no annual fee to have a Walmart credit card. We have rated this section as five out of five stars for its affordability.

APR

The Walmart credit card has a high regular interest rate of 24.65% on purchases. Cash advances can rise from an APR of 21.65% to 27.65%. We have rated this section as one out of five stars. Unfortunately, with lower credit requirements, the APR increases.

Pros

  • 3% cash back on purchases via Walmart.com      
  • Do not need to have good or excellent credit to apply
  • Earn 2% from buying gas at Murphy USA or Walmart gas stations
  • No annual fee

Cons

  • Cannot save rewards — they are automatically credited to next month’s statement 
  • No extra rewards for shopping in physical Walmart stores
  • Walmart gas stations and Murphy gas stations are not common everywhere
  • High APR

Target REDcard Credit Card

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The Target Redcard offers tangible, long-lasting incentives. It offers a 5% discount on most Target items, free shipping on online Target orders, and 30 extra days to make a Target return. You can only use it at Target stores or on Target.com, so you will only want to consider this if you shop frequently at Target and are not seeking an all-purpose, flexible card.

REWARDS PROGRAM

You will receive a 5% discount on most Target purchases through Target.com or in a store. Further, you receive free standard shipping from most items on Target.com and an extra 30 days to make returns. We have rated this as four out of five stars for its great rewards from Target, but its lack of rewards outside of the Target franchise.

CREDIT REQUIREMENTS

You must have a fair credit score to be approved for the Target Redcard. We have rated this as four out of five stars.

ANNUAL FEE

There is no annual fee for the Target Redcard. We have rated this as five out of five stars.

APR

The Target Redcard has a high variable APR of 24.15%. We have rated this as two out of five stars.

Pros

  • No annual fee 
  • 5% discount on all purchases from Target stores or Target.com
  • Extra 30 days to make a return to Target
  • Free standard shipping

Cons

  • Can only be used within a Target store or Target online
  • High APR
  • No weekend delivery for free, standard shipping
  • No sign-up bonus

Costco Anywhere VISA Card by Citi

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The Citi Costco credit card offers high cash back rewards for gas and Costco purchases. You can earn 4% cash back on gas purchases up to $7,000 per year, and you can also earn cash back from Costco and Costco.com purchases. Additionally, you can use this card on purchases outside of Costco to earn cash back.

REWARDS PROGRAM

You can receive 2% cash back on all purchases from Costco and Costco.com. Further, you receive 4% cash back on up to $7,000 of annual gas purchases at Costco. After you hit this mark, the cash back drops to 1% for gas purchases at Costco. You will receive 1% cash back on all non-Costco purchases, and you can earn 3% cash back when you use the card at restaurants or with eligible travel purchases. You will get your cash back once per year in the form of a credit voucher that you can redeem for cash or merchandise at Costco. We have rated the rewards program as four out of five stars.

CREDIT REQUIREMENTS

You must have good or excellent credit to apply for the Costco Anywhere card. We have rated this as three out of five stars.

ANNUAL FEE

There is no annual fee for this credit card, but you must be a Costco member to apply. Costco memberships usually cost between $60 and $120 per year, depending on the level of membership you purchase. We have rated this as three out of five stars.

APR

The Citi Costco card has a purchase APR and balance transfer APR of 17.24% based on your creditworthiness. We have rated this as four out of five stars.

Pros

  • No annual fee with Costco membership 
  • 4% cash back on gas purchases from Costco
  • 3% cash back on purchases at restaurants and eligible travel purchases
  • 2% cash back on all purchase from Costco stores or Costco.com

Cons

  • Receive your cash back once per year
  • Must be a Costco member to apply
  • No Intro APR
  • $7,000 annual gas purchase maximum for 4% cash back (at which point, it drops to 1% cash back)

DISCOVER IT CARD

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With the Discover It card, you can earn unlimited 1% cash back on all purchases automatically plus an additional 5% cash back each time you activate your card during quarterly earning opportunities. It is distinguished by its intro offer, where Discover will match all the cash back that you earn at the end of your first year, with no limit to how much is matched.

REWARDS PROGRAM

The biggest perk of the Discover It card is the intro offer where Discover will match all of the cash back that you earn within your first year. With the rewards program, you automatically earn 1% cash back on all purchases. You can earn 5% cash back at different locations, such as gas stations, grocery stores, restaurants, Amazon.com, each quarter. But, you have to activate your card in order to benefit from these rewards. Further, there is a quarterly maximum. We have rated this section as four out of five stars for its 5% earning potential along with the need to “activate” these rewards.

CREDIT REQUIREMENTS

You must have a good to an excellent credit score in order to be approved for the Discover It card. We have rated this as three out of five stars.

ANNUAL FEE

There is no annual fee for the Discover It card. We have rated this as five out of five stars.

APR

The Discover It card offers a 0% intro APR on purchases and balance transfers for the first fourteen months of your open account. It has an ongoing APR of 13.99% to 24.99% and a cash advance APR of 26.99%. We have rated this section as five out of five stars for its 0% intro APR.

Pros

  • No foreign transaction fees 
  • 0% intro APR on purchases and balance transfers
  • Discover automatically matches the cash back you have earned during the first year
  • 5% cash back earning potential each quarter

Cons

  • Must have good or excellent credit to be approved
  • Need to activate 5% rewards
  • Quarterly maximum on cash back earning potential
  • Only 1% cash back on all other purchases

Conclusion

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If you are just beginning to use credit cards or have accumulated bad credit, then the Walmart credit card could be a good option for you. Unfortunately, you can only earn 1% cash back from purchases made in Walmart stores, and there is only a $25 intro statement credit that must be used within 24 hours of receiving the card (with a $25 purchase minimum). Further, it has a very high interest rate, so this is not an account where you want to maintain a balance. Also, all cash back is redeemed as a credit on your next month’s statement and cannot be saved.

We have rated the Walmart card overall as two out of five stars. The Walmart credit card is accessible to a wide array of credit card users, as users with poor credit will probably still be approved. This is an ideal choice if you frequently shop on Walmart.com, as that is where you can gain the most rewards.

To summarize our findings above, here are considerations for the other options:

THE TARGET REDCARD

A great option for frequent Target shoppers. It offers free shipping, extra time on returns, and a 5% discount that can go a long way with a huge Target cart. You need only have a fair credit score to be approved, so it is accessible to most users. Further, it has no annual fee. However, this card can only be used at Target stores and Target.com, so you should only consider this option if you are a big Target fan.

THE COSTCO ANYWHERE VISA CARD

This is a great choice for Costco shoppers that want to save a lot of money on gas. We really appreciate the 4% cash back earning potential on up to $7,000 of gas purchased at Costco and the 2% cash back on purchases from Costo and Costco.com. We like how this card can make purchases outside of Costco as well for 1% cash back rewards, so this can serve as an all-purpose card. This is a great card if you live near a Costco gas station, shop at Costco frequently, and do not need rewards redeemed frequently (as you can only receive them once per year).

THE DISCOVER IT CARD

An all-purpose card that provides you with 1% cash back on all purchases plus the earning potential for 5% cash back when you activate your card during quarterly opportunities. We really appreciate its matching intro offer where Discover will match all the cash back that you earn within the first year. We did not appreciate the quarterly maximum or the fact that you have to “activate” your card for maximum rewards. This is a good card if you remember to activate your card at appropriate times and want an all-purpose card that can offer double rewards during the first year.

We hope that this review gives you more insight into which card is the right choice for you. Happy shopping!

How to Build Credit

May 17, 2019 by  
Filed under Credit Report, Credit score

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Credit is an important thing to have. It is important for those of us that would like to borrow money from banks to buy a house, a car, get a credit card or business loan. Having credit can help individuals. It shows that they are prepared to pay back the money being borrowed, and they are a trustworthy client to have. It is important that those out there learn how to build credit so that there’s little to no struggling during the process.

It is also important to note that even those that have built their credit up previously may have fallen on hard times and might require the help of learning how to build credit again. Credit can be something hard to build up; it can take time. Keep this in mind when considering not paying a bill or skipping out on credit card debt. That debt can stay with an individual for some time, making it hard to catch up. It is important to come up with a plan, work towards paying off the debt and know how to build credit so you can make use of the tips and tricks that will help keep you afloat.

Credit 101: The Basics

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Knowing the basics regarding the credit you are trying to build is always good. Knowing what to expect and having a timeline definitely helps. Here are specific things to keep in mind regarding your credit and knowing how to build credit so you can get the most out of your score:

  • 1
    Debt can happen to anyone, even you.
  • 2
    Creditors will share your name with others so they’ll know you defaulted. 
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    Building your credit, even if you know how to build credit, doesn’t happen overnight.
  • 4
    Having good credit is actually very important.
  • 5
    There is such a thing as having too much credit and too many credit cards!
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    You can ask creditors for a better interest rate if you have a high credit score and great credit history.
  • 7
    Closing out cards can actually hurt your credit, so hold on to them, even if you don’t use them.
  • 8
    You’re welcome to request a copy of your credit score from all three bureaus for free once every year to check for changes

Tips for Maintaining a High Credit Score

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It is important that even though you have built up that credit score that you take steps to maintain it. Maintenance is key to keeping a great credit score. Here are some of the best tips for maintaining your credit score so it climbs to—and stays at—the perfect level of 850. It is also important that you know what goes into having a great credit score. It does not matter so much about the amount of credit you have but more about the length of the credit lines, the debt on these lines, the on-time payments and more.

  • On-time payments: always pay your bills on time, every time, especially credit-related bills. Ex: credit card, car payments, mortgages, private loans, etc.
  • Low credit balances: keep the balances on your credit cards lower than 30% of your total credit limit. Exceeding this amount might harm your credit rather than help it.
  • Steady, old accounts: don’t close out old accounts. Even if they are not being used, having these accounts on your report can help because it shows you have a long-standing reputation.
  • Credit report vigilance:  always watch your credit report to make sure there are no new charges that are happening without your knowledge. 
  • No online overindulgence: limit how much you apply to stuff online because any new credit can hurt your score.

How to Build Credit

Following these steps can help you build better credit overall. With these steps in mind, you can even spread the word to others on how to build credit. There are two main credit bureaus you want to know and keep an eye on, FICO and VantageScore. Creditors work with one or the other to read into your credit and see where you stand. By having a few different things, you can build better credit in the eyes of both bureaus.

Get a Secured Credit Card

While this seems easier said than done for a lot of people, there are many first-time user cards out there that allow the newbie to take advantage of a small line of credit. Some cards are secured, and the user can put money on them to use them like a charge card that also reports to the major credit bureaus.

Become An Authorized User

Having someone else put you as an authorized user on their card gives you the same spending power that they have. This also means that it can help your credit if the card is used wisely. Just make sure that the person the card is connected to is smart about their spending, buying and paying for expenses so the card is paid for on time. If it is not, it can actually hurt your credit.

Apply For A Loan To Build Credit

There are things known as credit-builder loans. These are small unsecured loans that allow people to build their credit without having to worry about qualifying for credit cards. These loans were specifically designed for people that want to build their credit back up or lacked credit in the first place. They can be obtained through credit unions. Signing up for the union can allow you to get the perks that come from these loans.

Get Someone To Co-Sign

Getting someone to co-sign for you can get you in the credit game with ease. Not only do you get the benefits of having the loan you signed up for, but you can put it in your name as something to show. You just need someone that is willing to sign on your behalf and put up the cash if you happen to default on the loan. However, it is important that you don’t. If you do default on the loan, this means bad things for your credit.

Build By Building Good Credit Habits

Having good credit habits is going to help you in the long run when you need to make sure that your credit is as high as possible. Of course, being able to spend the right amount on the cards is the first thing to think about. A lot of times when people are handed a high amount on a credit card or cards, they have the instinct to go out and spend almost all of it. This can actually get you in trouble. Try to refrain from spending too much on the cards as this can mean a lot of credit card debt in the long run.

Always make sure to make your payments on time, every time. Not just some of them, but all of them. Even one missed payment can cause your credit score to drop lower than you would like. This is not a good thing if you’re trying to build it. While some things might not be reported right away, it is important that you pay your bills on time or early to reduce the chances of being negatively affected by it.

Avoid opening up too many credit accounts. This can lower your account age and cause the credit score that you have to drop down. In order to keep the score up, it is important that you keep the older accounts for as long as possible and do not add a bunch of new ones all the time.

Even if you are not using a credit account, you want to make sure that you keep it open. Closing these accounts can cause your credit score to drop lower than you may like. The cards will not harm your score by sitting there not being used. It is important that a small charge is put on them from time to time to keep them active. For example, paying with your card for gas and then going home and scheduling a payment to pay it off is ideal.

It is good to keep checking your credit score every 14-25 days because it will constantly change as you work on it. This will give you an idea of whether you’re going in the right direction or not. Some individuals even request a professional that can provide a list of things to do to fix or bring up your credit as fast as possible. It is also good to keep in mind that credit scores take time to work on and to improve.

Conclusion

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With a high enough credit score, you’re easily able to take advantage of various perks. Everyone has to build their way up from the bottom and then hold yourself there when trying to get a credit score that is acceptable. Following these guidelines can help those interested in having better credit overall. Knowing how to build credit is information you can use now and spread to all those that might struggle while building theirs. Regardless of where you are or they are in this process, having information to help you along the way is always helpful.