Review: Walmart Credit Card

walmart-mastercardWal-Mart offers two basic credit cards — a Walmart store credit card and a Walmart Mastercard. See below for a summary of each and a review / opinion on which is better:

  • The Walmart Mastercard offers 3% cash back on purchases (including groceries ordered online and picked up) but only 1% cash back on Walmart in-store purchases. It also offers 2% cash back on gas purchases at Walmart and Murphy USA gas stations, and 1% cash back on all other card purchases. (Cash back is given as a statement credit, reducing your Walmart credit card bill by the amount you’ve earned in rebates.) It has no annual fee and there is a chance you could get instant approval at a somewhat reasonable (for a retail credit card) 18.9% interest rate, but you could also get stuck with a 21.9% or 24.9% rate if your credit isn’t excellent. If you are instantly approved, you will get $25 off purchases you make on the same day you open your card account, provided you spend at least $75 total.
  • The Walmart Credit Card is a card that offers you credit in order to make purchases at Walmart stores only. (You can use it at the Walmart-owned Sam’s Club, too.) It offers everything the Walmart MasterCard offers, except you can’t use it outside of Walmart stores, so you obviously can’t get the 1% rebate on non-Walmart purchases that the MasterCard offers. There is no annual fee for this card but the interest rate is a hefty 24.9%.

Looking at the two Walmart credit cards, it seems obvious that the Walmart Mastercard offers a better value. So why would you ever choose the Walmart Credit Card?

Well, in most cases, you wouldn’t. But the catch here is that when you apply for a Walmart credit card, you really aren’t choosing which card you want — instead they are choosing which card to give you based on your credit history. If you meet their credit standards, you will get the Walmart Mastercard. If not, they will offer you the store-only Walmart card.

Both Walmart credit cards are issued by Synchrony Bank.