Capital One® Walmart Rewards™ Credit Card Review: Is It Worth It?
Lyle is a writer specializing in credit cards, travel rewards programs, and banking. His work has also appeared on MSN Money, USA Today, and Yahoo! Finance.
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Walmart has had its own store credit card for years, but recently, the retail giant decided to team up with Capital One for a new and improved version of its rewards card.
The Capital OneⓇ Walmart Rewards™ Mastercard® comes with an updated rewards rate and some benefits we don't often see with store cards, so it could be a valuable option if you like to shop at Walmart.
Diverse cash back program -- Cardholders receive 5% back on Walmart.com purchases and in-store purchases made through the Walmart Pay app, although the app rate promo is only for the first 12 months (2% thereafter). Travel and restaurants earn 2% back. All other purchases earn at the base rate of 1% back.
No annual fee -- Cardholders can harvest the full value of rewards earned by avoiding an annual fee.
Price protection -- If you purchase a new item and find it for a lower price within 120 days, you may be reimbursed for the difference.
Extended warranty coverage -- This automatically doubles the original manufacturer's warranty and store brand/purchased warranty when each is 24 months or less, for a total of up to 48 months.
Rental car insurance -- With MasterRental Insurance, you're covered against damages to rental vehicles, including physical damage and theft.
Baggage delay insurance -- If your baggage is delayed by four hours or longer on a covered trip, this coverage will reimburse you for emergency purchases of essential items.
Trip cancellation/interruption insurance -- If your trip is canceled or interrupted because of a covered accident or illness, your Walmart credit card can reimburse you for the unused, non-refundable portion of your common carrier passenger fare.
No foreign transaction fee -- Cardholders can use this card in other countries without paying extra fees on each swipe.
What could be improved
5% promo cash back rate -- The card would have more versatility if the 5% back rate lasted beyond 12 months for in-store purchases.
0% intro APR -- Cards intended for routine shopping are more valuable when offering a 0% intro APR on purchases.
Suggested credit score
Applicants with average credit -- FICO score in the mid 600's and higher -- will have the best odds of securing approval.
This card is right for you if:
Do you spend at least $100 at Walmart per month? If so, then you should apply for this credit card.
However, you will have a decision to make after you've had the card for a year. At that point, the card will only earn you 5% back on Walmart.com purchases. That works if you can make the majority of your Walmart purchases through the website, but if not, then you should look at other cash back credit cards with more diverse bonus categories.
Although you can redeem your rewards for travel through Capital One, this isn't a travel card. If travel benefits are what you're after, then you should check out travel rewards cards instead.