If you’re a frequent Walmart shopper, the Capital One Walmart Rewards® Mastercard® could be an excellent addition to your wallet. This no-annual-fee card offers some of the best rewards rates available for shopping at the retail giant, both online and in-store. However, like any credit card, it’s essential to understand its nuances to determine if it aligns with your spending habits and financial goals.
In this comprehensive review, we’ll dive deep into the Capital One Walmart Rewards® Mastercard®, exploring its rewards program, perks, fees, and more. We’ll also compare it with other popular cash-back credit cards to help you decide if it’s the right fit for you.
Rewards Program
The Capital One Walmart Rewards® Mastercard®’s rewards program is designed to benefit loyal Walmart customers. Here’s a breakdown of how you can earn rewards:
- 5% cash back on purchases made at Walmart.com and the Walmart app, including grocery pickup and delivery
- 2% cash back on restaurants and travel, and at Walmart stores, Walmart-branded gas stations, and Murphy USA fuel stations
- 1% cash back on all other purchases
The standout feature of this card is the impressive 5% cash back rate on Walmart.com and app purchases, which is one of the highest rates available for online shopping at a major retailer. This can be especially valuable for those who prefer the convenience of online ordering and grocery delivery.
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Welcome Bonus
For the first 12 months after opening your account, you can earn 5% cash back on purchases made in Walmart stores when using your Capital One Walmart Rewards Card with Walmart Pay. This introductory offer is a fantastic way to maximize your rewards during the first year of card ownership, but it does require using the Walmart Pay app for in-store purchases.
Redeeming Rewards
Redeeming your rewards with the Capital One Walmart Rewards® Mastercard® is straightforward. You can choose to receive a statement credit, redeem for purchases during online checkout at Walmart.com, or redeem at the cash register using Walmart Pay. Additionally, you can book travel through the Capital One Travel portal or purchase gift cards with your rewards.
Perks and Benefits
While the Capital One Walmart Rewards® Mastercard® is a no-frills card focused primarily on earning rewards, it does come with a few notable perks and benefits:
- Price protection: Get reimbursed for the price difference if you find the same eligible item advertised for a lower price within 120 days of your purchase.
- Extended warranty: Enjoy an additional two years of coverage on eligible items with existing warranties of two years or less.
- Cellphone insurance (World Elite Mastercard version only): Get up to $800 per eligible claim and $1,000 per 12-month period for covered cellphone damage or theft, with a $50 deductible per claim.
- Auto rental insurance coverage (World Elite Mastercard version only): Get secondary coverage for damage or theft to an eligible rental when you pay for the entire purchase with your card.
Fees and Interest Rates
Like most rewards credit cards, the Capital One Walmart Rewards® Mastercard® has a few fees and interest rates to consider:
- Annual Fee: $0
- Balance Transfer Fee: 3% of the amount of each transferred balance that posts to your account at a promotional APR
- Cash Advance Fee: 3% of the cash advance amount, with a minimum of $3
- Late Payment Fee: Up to $39
- Regular APR: 19.48% or 29.99% variable, depending on your creditworthiness
It’s crucial to note that this card does not offer an introductory 0% APR on purchases or balance transfers, so any outstanding balances will accrue interest at the regular APR from the start.
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Comparison: Capital One Walmart Rewards® Mastercard® vs. Other Cash Back Cards
To better understand the value proposition of the Capital One Walmart Rewards® Mastercard®, let’s compare it with a few other popular cash-back credit cards:
Capital One Walmart Rewards® Mastercard® vs. Citi® Double Cash Card
The Citi® Double Cash Card is a straightforward cash-back credit card that earns 2% cash back on all purchases – 1% when you buy, and an additional 1% when you pay your bill. While the Citi® Double Cash Card doesn’t offer higher rewards rates for specific categories, its flat 2% rate on all purchases can be more valuable for those who don’t shop primarily at Walmart.
Capital One Walmart Rewards® Mastercard® vs. Chase Freedom Unlimited®
The Chase Freedom Unlimited® is another excellent cash-back card with a flat rewards rate. You’ll earn 1.5% cash back on all purchases, plus a welcome bonus of $200 after spending $500 in the first three months. Like the Citi® Double Cash Card, the Chase Freedom Unlimited® could be a better choice for those who don’t heavily favor Walmart for their shopping needs.
Capital One Walmart Rewards® Mastercard® vs. Bank of America® Cash Rewards Credit Card
The Bank of America® Cash Rewards Credit Card offers a unique rewards structure that could be a good alternative to the Capital One Walmart Rewards® Mastercard®. You’ll earn 3% cash back in one category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% cash back at grocery stores and wholesale clubs (including Walmart), and 1% cash back on all other purchases. If you frequently shop at Walmart but also want higher rewards in other categories, this card could be a solid choice.
Conclusion
The Capital One Walmart Rewards® Mastercard® is an excellent option for Walmart loyalists, especially those who frequently shop online or use grocery pickup and delivery services. With a generous 5% cash back rate on Walmart.com and app purchases, this card can help you maximize your rewards on everyday essentials.
However, if you don’t primarily shop at Walmart or prefer the flexibility of higher rewards rates across a broader range of spending categories, other cash-back credit cards might be a better fit for your wallet.
Ultimately, the decision to apply for the Capital One Walmart Rewards® Mastercard® comes down to your spending habits and preferences. By carefully evaluating your shopping patterns and weighing the card’s perks against its limitations, you can determine if it’s the right choice to help you earn more rewards on your purchases.
Remember, responsible credit card usage is key to maximizing the benefits of any rewards program. Be sure to pay your balances in full and on time each month to avoid interest charges and late fees, which can quickly erode any rewards earned.
As with any financial decision, it’s always wise to carefully consider your options and choose the products that best align with your goals and lifestyle. With a little research and thoughtful planning, you can find the right credit card to help you earn valuable rewards while maintaining healthy financial habits.
FAQs
Can I use the Capital One Walmart Rewards® Mastercard® at other retailers?
Yes, the Capital One Walmart Rewards® Mastercard® is a World Mastercard or World Elite Mastercard, which means you can use it anywhere Mastercard is accepted. However, you’ll only earn the highest rewards rates on purchases made at Walmart.com, the Walmart app, Walmart stores, and Walmart-branded gas stations.
Is there a credit limit on the Capital One Walmart Rewards® Mastercard®?
Like most credit cards, the Capital One Walmart Rewards® Mastercard® will have a credit limit based on your creditworthiness and income. The credit limit will be determined when you apply and can be increased or decreased over time based on your credit history and usage.
Can I transfer a balance to the Capital One Walmart Rewards® Mastercard®?
While you can transfer a balance to the Capital One Walmart Rewards® Mastercard®, it’s essential to note that there is no introductory 0% APR offer for balance transfers. Any transferred balance will accrue interest at the regular APR from the start, and you’ll be charged a balance transfer fee of 3%.
Is the Capital One Walmart Rewards® Mastercard® worth it for non-Walmart shoppers?
If you don’t shop at Walmart frequently, especially online, the Capital One Walmart Rewards® Mastercard® may not be the best choice for you. Other cash-back credit cards that offer higher rewards rates on broader spending categories could be a better fit.
Can I use the Capital One Walmart Rewards® Mastercard® to shop at Sam’s Club?
Yes, you can use the Capital One Walmart Rewards® Mastercard® at Sam’s Club. However, purchases made at Sam’s Club will only earn the base 1% cash back rate, not the higher rewards rates for Walmart purchases.
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