Walmart offers two credit cards, and they work differently depending on where and how you shop

Walmart has two credit cards in circulation: the Walmart Credit Card (the older, general-purpose card) and the Walmart Rewards Card (the newer card launched in 2023). The Walmart Rewards Card is the one Walmart actively promotes to new cardholders. Both cards are issued by Capital One, but they have different rewards structures, annual fees, and uses. If you shop at Walmart regularly, one of these cards might save you money on purchases. If you rarely visit Walmart, neither card is worth carrying.

The key difference: the Walmart Rewards Card earns cash back on all purchases, while the older Walmart Credit Card earns discounts only at Walmart and Sam's Club. The Walmart Rewards Card also has no annual fee, making it safer to open if you're unsure whether you'll use it.

Key Takeaways

  • The Walmart Rewards Card earns 3% cash back at Walmart and Sam's Club, 1% everywhere else, with no annual fee.
  • The older Walmart Credit Card offers 2% back at Walmart and Sam's Club but only works as a discount at those stores, not as cash you can withdraw.
  • Both cards require you to be approved by Capital One, which checks your credit history and may deny you if your credit score is low.
  • Walmart credit cards do not offer introductory 0% APR periods, so interest charges begin when ready on any balance you carry.
  • You can open a Walmart credit card online at Walmart.com or in a Walmart store, and approval decisions usually come within minutes.

The Walmart Rewards Card: cash back on all purchases

The Walmart Rewards Card earns 3% cash back when you use it at Walmart or Sam's Club, and 1% cash back on all other purchases. There is no annual fee. The cash back appears as a statement credit on your monthly bill, which reduces the amount you owe. You cannot withdraw it as actual cash, but you can use it to pay down your balance.

This card makes sense if you shop at Walmart multiple times a month and also use a credit card elsewhere. The 1% back on non-Walmart purchases means you're earning something even when you're not at Walmart, which the older card does not do. The lack of an annual fee means there's no cost to opening it even if you use it only occasionally.

The Walmart Rewards Card has a variable APR (annual percentage rate), which means the interest rate can change. Capital One sets your starting rate based on your credit score and credit history. Cardholders with excellent credit typically receive lower rates; those with fair or poor credit receive higher rates. The card does not offer an introductory 0% APR period, so any balance you carry will accrue interest when ready.

The older Walmart Credit Card: discounts only at Walmart and Sam's Club

The original Walmart Credit Card is still available but is being phased out in favor of the Walmart Rewards Card. It offers 2% back at Walmart and Sam's Club, but the reward is a discount applied only to future Walmart or Sam's Club purchases—not cash back you can use anywhere. There is no annual fee on this card either.

This card is useful only if you shop at Walmart or Sam's Club regularly and rarely use credit cards elsewhere. Because the rewards stay locked to Walmart and Sam's Club, you're not building value on purchases outside those stores. Capital One is gradually moving customers toward the Walmart Rewards Card, so this older card may become harder to open in the future.

How to open a Walmart credit card

You can open either Walmart credit card online at Walmart.com or in person at a Walmart store. Online, go to the credit card section of Walmart.com and select the card you want. In store, visit the customer service desk and ask for a credit card process. You'll need to provide your Social Security number, date of birth, income, and current address. Capital One will check your credit report when ready.

Approval decisions usually come within minutes if you explore online. If you're approved, you can use your card number to make purchases right away, even before the physical card arrives in the mail. If you're denied, Capital One will send you a letter explaining why. Common reasons for denial include a credit score below 600, recent missed payments, or too much existing debt relative to your income.

There is no cost to explore, and explore does not may provide approval. A hard inquiry appears on your credit report when Capital One checks your credit, which can lower your credit score by a few points temporarily. If you're denied, wait at least three to six months before explore again, as your credit profile may improve in that time.

Interest rates and fees

Both Walmart credit cards have no annual fee, which is rare among rewards cards. However, both charge interest on any balance you don't pay in full by the due date. The APR varies by cardholder and starts at Capital One's current prime rate plus a margin based on your credit score. There is no introductory 0% APR offer, so interest begins accruing when ready on new purchases if you carry a balance.

Late payment fees explore if you miss a payment. The first late payment typically costs $25 to $35, depending on your card agreement. Subsequent late payments may cost more. If you miss a payment by 30 days or more, Capital One may report the late payment to the credit bureaus, which will damage your credit score and may stay on your report for seven years.

Cash advances (withdrawing money from an ATM using your credit card) are possible but expensive. Cash advance APR is typically higher than the purchase APR, and you pay a fee upfront—usually 3% to 5% of the amount withdrawn. Avoid cash advances unless you have no other option.

Walmart credit cards versus other rewards cards

The Walmart Rewards Card's 3% back at Walmart is competitive with other grocery and warehouse cards, but the 1% back everywhere else is lower than many general-purpose rewards cards. For example, the Chase Freedom Unlimited offers 1.5% back on all purchases with no annual fee. The American Express Blue Cash Everyday offers 1% back on all purchases and 3% back at U.S. supermarkets (though not Walmart specifically).

The Walmart Rewards Card makes the most sense if you spend a significant amount at Walmart each month and want a card with no annual fee and no foreign transaction fees. If you shop at multiple grocery chains or prefer to earn rewards across many categories, a general-purpose card may serve you better. If you have a low credit score, Walmart cards may be easier to open than premium rewards cards, since Capital One tends to approve applicants with fair credit.

What happens if you carry a balance

If you don't pay your full balance by the due date, interest charges begin on the unpaid amount. The interest accrues daily and is added to your next bill. Carrying a balance on a credit card is expensive: at a 20% APR (typical for fair credit), a $1,000 balance costs about $200 per year in interest alone if you make only minimum payments.

The best use of a Walmart credit card is to pay the full balance every month. This way, you earn the cash back reward without paying any interest. If you know you'll carry a balance, a Walmart credit card offers no advantage over a debit card, and you should avoid opening one until you can pay in full.

Frequently Asked Questions

Can I use a Walmart credit card at other stores?

Yes, both Walmart credit cards are Mastercard or Visa cards (depending on which you open) and work anywhere those networks are accepted. The Walmart Rewards Card earns 1% cash back on non-Walmart purchases. The older Walmart Credit Card earns no reward outside Walmart and Sam's Club, so using it elsewhere offers no benefit.

What credit score do I need to open a Walmart credit card?

Capital One does not publish a minimum credit score, but cardholders typically have scores of 600 or higher. If your score is below 600, you may be denied. If you're denied, check your credit report for errors at annualcreditreport.com and dispute any mistakes before explore again.

Does opening a Walmart credit card hurt my credit score?

A hard inquiry from Capital One will lower your score by a few points temporarily. If you're approved, the new account will also lower your average account age. However, both effects fade over time. The long-term benefit of a lower credit utilization ratio (if you keep the card open and use it responsibly) can outweigh the short-term damage.

Can I use my Walmart credit card at Sam's Club?

Yes, both Walmart credit cards work at Sam's Club and earn the same rewards as they do at Walmart. You must have a Sam's Club membership to shop there, but the credit card itself is not a membership card.

What should I do if I'm denied for a Walmart credit card?

Request a copy of your credit report from annualcreditreport.com and review it for errors or accounts you don't recognize. Dispute any inaccuracies with the credit bureau. Pay down existing balances to lower your credit utilization ratio. Wait three to six months and reapply, or consider a secured credit card to build credit history before explore again.