New Walmart Credit Card and Walmart MasterCard Issued by Capital One
The new Walmart credit card from Capital One is catching attention with consumers everywhere. These two have teamed up to help make your shopping experience more rewarding, especially for people who shop often. But, how does the Walmart MasterCard compare to the Target REDcard? If you shop at both stores, you’ll want to know which is best. We’ll break down the new Walmart credit card below before giving you a quick comparison.
New Walmart Credit Card Pros
1. Excellent Rewards with the New Walmart Cards
The Walmart MasterCard has enticing cash back rewards for cardholders. To start, you get 2% back on travel and dining with 1% everywhere else. However, when you shop at Walmart.com, you get 5% back on purchases, including groceries. You also get 5% back using Walmart Pay for in-store purchases for a full year. Once the year ends, this drops to 2% back.
2. Flexible Redemption on Rewards
Once you start earning rewards with the Capital One new Walmart credit card, you can redeem them a few ways. Choose statement credits, gift cards, travel, or savings at the online checkout on all Walmart purchases. Whatever you choose, you’ll reap the benefits of the higher rewards rate for at least a year.
3. Easy Application
The application process for this card is very straightforward. You can apply right at the register, or through any mobile device. All you have to do is text from anywhere to start the application process. You’ll get an approval or denial in a matter of minutes. If they approve you, you can verify your identity and use the card straight away.
4. Security Features from Both Walmart and Capital One
The new Walmart credit card takes identity theft and fraud seriously. You can set up a host of security features straight from the Walmart or Capital One app. They include instant purchase notifications, security alerts, and 0% fraud liability. You can also lock or unlock your card from the app if you should misplace it. All of these things combine to create a secure card.
5. Introductory Offer
We touched on the introductory offer earlier. However, it gives you 5% back on purchases for the first 12 months. This period is when you want to get your bigger items from Walmart because you get bigger rewards. At the end of the introductory offer, your amount falls to 2% back. While this is still good, it’s nowhere near the 5% back you get for 12 months.
6. Fully Digital
Walmart and Capital One have worked hard to offer cardholders a fully digital experience. They give them all of the tools they need to manage everything from their phones. You can monitor your card, check your purchases, and much more. Also, the app features a heavy layer of encryption that helps to protect your identity if you ever lose or phone. This gives you greater peace of mind.
7. Rewards Portal
Every person who has the new Walmart credit card gets access to their own rewards portal. This portal is where you choose how you’d like to redeem your rewards. You can stack them for a year before they expire. So, if you want to help with the cost of an expensive item, save. You can then redeem them at checkout as long as you shop online.
New Walmart Credit Card Cons
1. Short Introductory Reward Rate
The 5% back that draws people is only temporary. You get 5% back on your purchases for 12 months from the date you open the card. Once the 12 months pass, this rewards rate drops. This makes this card still useful, but not as useful when it has a higher rate.
2. Credit Score
Walmart and Capital One are keeping the exact score range required for this card under wraps. However, they did say that you need excellent to exceptional rates. If this is the case, it shuts out a lot of potential cardholders. If you apply, they’ll deny you for the card. This can drop your credit score. They set up their requirements like this because they want assurance that they’ll get their money.
3. High-Interest Rate
The new Walmart credit card comes with a higher interest rate. The Walmart MasterCard has interest rates between 17.99% are 26.99%. The store-only credit card has an interest rate of 26.99%. If you carry a balance from month to month, this can stack up. You can quickly get into debt that you have trouble getting out of.
Comparing the New Capital One Walmart Credit Card to the Target REDcard
The Target REDcard is the direct competition to the new Capital One Walmart credit card. As such, it’s important to see how they stack up. You want to make sure you have the one that is going to serve you best.
One of the biggest differences between these two cards is the rewards. Both do have a 5% cash back option, but they differ after that. The Target REDcard allows you to earn 5% when you shop in-store and online for as long as you have the card. Walmart’s card gives you 5% for the first year before dropping back to 2%.
Both of these cards are branded credit cards. This means that you can only use them at the specific stores, or Target and Walmart. You can use both of them online and in the physical stores without a problem. You can’t use either card anywhere else because it isn’t valid.
The Walmart MasterCard’s APR is 17.99% to 26.99% with the reward card having a flat 26.99% APR. The Target REDcard comes with a 25.15% variable APR. Depending on the card you get, you could end up paying more in interest fees with the Walmart card. If you don’t carry a balance, this won’t be a big deal either way.
The new Walmart credit card is the clear winning in the introductory offer category. You get 5% back for the first 12 months as an introductory offer. The Target REDcard will give you $40 after you spend $100 in the first three months. This isn’t much, especially when you stack the cards side by side.
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Capital One® Walmart Rewards™ Card
Final Thoughts on the New Capital One Walmart Rewards Card and Walmart MasterCard
When it comes to longevity, the Target REDcard wins against the new Walmart credit card with a Capital One partnership. However, the sheer options you get for going digital lean toward Walmart’s card. We believe that Walmart’s new card can compete with Target’s REDcard. Finally, Walmart has reported that Walmart credit reward benefits will continue to evolve with time. However, you have to decide whether or not the benefits outweigh the costs.