Capital One Walmart Rewards Mastercard: Annual Fee, Low Interest Rate and Generous Cashback Rewards

Last Updated on June 30, 2021

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The Capital One Walmart Rewards Mastercard, also called the Walmart Credit Card,  is one of the best credit cards tied to a major retailer. With flexible spending beyond Walmart stores, generous cashback rewards, and no annual fee, the Walmart Credit Card holds a top spot for in-store rewards cards.

The Rundown – Capital One Walmart Rewards Mastercard

The Capital One Walmart Rewards Mastercard can be used anywhere Mastercard is accepted, though the credit card really shines when shopping at Walmart, particularly online. There are no upfront costs or annual fees involved with the credit card, and it has an extensive rewards program for cardholders (especially Walmart loyalists) to enjoy.

Incentive: There is currently no initial incentive for the Capital One Walmart Rewards Mastercard, unlike other popular retail rewards cards. However, the credit card does start amassing cashback rewards as soon as the cardholder is approved.

Online Rewards: When shopping online with the Capital One Walmart Rewards Mastercard, shoppers earn 5 percent, which can be used on many rewards not limited to in-store gift certificates like other in-store cards. The purchases made online or through the Walmart mobile app are eligible for this high cashback program, even if those items are picked up at a Walmart store.

Note: In-store purchases are eligible for 5 percent cashback during the first 12 months if the Walmart Credit Card is connected with Walmart Pay, Walmart’s mobile application that lets customers pay using their phones. Walmart Pay must be used at checkout.

Other Rewards: After the 12-month introductory program, Walmart cardholders receive 2 percent back at both in-store Walmart locations and Murphy USA gas stations, an affiliated company. Restaurant and travel spending are also eligible for 2 percent cashback, and there is a 1 percent reward everywhere else Mastercard is accepted.

Earn more at Walmart.com. The Capital One Walmart Rewards Mastercard has a generous rewards program tied to its online store.
Earn more at Walmart.com. The Capital One Walmart Rewards Mastercard has a generous rewards program tied to its online store. Photo Credit: monticello / Shutterstock.com

Cash It In: Cardholders can redeem points in many ways and are not limited to Rewards certificates like the JCPenney or T.J. Maxx credit cards. Rewards can be applied toward statement credit or redeemed in the form of a check. Rewards can also be used to cover a purchase at Walmart.com or to purchase a gift card from Walmart and other partnering retailers. Cashback rewards can be redeemed for flights, hotels, or other travel goods.

Best APR For In-Store Credit Cards … If You Have The Right Score

The Capital One Walmart Rewards Mastercard has a unique program that limits the interest rate on an outstanding balance if your credit score is good. The regular APR ranges from 17.99 percent to 26.99 percent, depending on your credit score. Higher credit scores will score a lower interest rate, while those with higher scores will see numbers on the top of the spectrum. Though 26.99 percent is a hefty interest rate, even for an in-store credit card, the lower portion of the range is exceptionally low for credit cards tied to retailers.

For reference, the Target REDcard offers a 22.90 percent APR Variable, which in itself is an average interest rate among competitors. Still, if your credit score is not eligible for the lower APR, you’ll see your balance accrue hefty interest if left unpaid. Either way, the best credit card practices involve paying off your balance on time every month to take the most advantage of discounts and cashback rewards. If you don’t, you’ll see those rewards wasted as you pay off the additional interest that snowballs very quickly.

The Verdict:

The Capital One Walmart Rewards Mastercard is great for those who choose Walmart over other major retailers to do their shopping, especially when done online. The flexibility to use this card anywhere Mastercard is accepted is a huge bonus compared to other cards tied to retailers, especially when cashback points can be redeemed for a huge selection of rewards.

The major issue with the Walmart credit card is for those who aren’t keen on shopping online. After the first 12 months, purchases made in stores only receive 2 percent cashback, which is a major dip from the online cashback program. The 2 percent is also extremely low compared to Target’s credit card, which offers 5 percent both in-store and online. However, Walmart shoppers can make purchases online with 5 percent cashback and pick up those items on location, which can be helpful for those who don’t want to wait for shipping.

With its large range on the APR scale, the Capital One Walmart Rewards Mastercard can be either a blessing or a curse, depending on the cardholder’s credit score upon application. The higher part of the range is very high compared to most cards, however, the lower range is an exceptional interest rate, even for credit cards offered from financial institutions.

For avid Walmart shoppers, the Walmart credit card is an exceptional tool to earn rewards with every purchase.