Capital One and Walmart announced on Wednesday, Sept. 18, the joint Capital One® Walmart Rewards Credit Card Program, which includes two new credit cards: The cobranded Capital One® Walmart Rewards Mastercard® and the private-label Walmart Rewards Card, both launching September 24.
"Walmart's mission has always been to help customers save money so that they can live better, and our new credit card program — which both helps customers earn more when paying for things in and outside of Walmart and offers many other incredible benefits — is squarely aligned with that mission," Daniel Eckert, senior vice president, Walmart services and digital acceleration, said in the press release.
Below, CNBC Make It breaks down the two new card offerings, how to apply and the changes current Walmart cardholders can expect.
Capital One® Walmart Rewards Mastercard® | Source: Capital One
Capital One® Walmart Rewards Mastercard®
The Capital One® Walmart Rewards Mastercard® is a cobranded credit card that can be used anywhere Mastercard is accepted. There is no annual fee, no foreign transaction fees and the APR is currently 17.99% to 26.99% variable.
Here's the rewards breakdown:
- 5% back on purchases at Walmart.com, inclusive of Walmart Grocery Pickup and Delivery
- 2% back on Walmart purchases in stores
- 2% back on restaurants and travel
- 1% back everywhere else
There's also a special introductory offer: Earn 5% back on in-store purchases when using Walmart Pay for the first 12 months after approval. After the intro offer, earn 2% back.
Travel purchases include a broad range of categories, such as airlines, hotels, car rentals, ride-sharing services like Uber and Lyft, taxi, rail and bus rides, according to Daniel Mouadeb, senior vice president and head of the Walmart partnership at Capital One.
Similar to other Capital One credit cards, rewards can be redeemed at any time and for any amount. Redemption options include travel, gift cards, the ability to cash in points during online checkout at Walmart.com and statement credits.
Additional card benefits include extended warranty protection, car rental insurance, travel accident insurance, baggage delay insurance, trip cancellation/trip protection insurance, emergency roadside assistance, travel assistance services, price protection and more. Terms apply.
Walmart Rewards Card
The Walmart Rewards Card is a private-label card, also known as a store card, so you can only use the card at Walmart properties. Just like the Capital One® Walmart Rewards Mastercard®, the Walmart Rewards Card has no annual fee and a 26.99% variable APR.
Here's the rewards breakdown:
- 5% back on purchases at Walmart.com and on the Walmart app
- 2% back on Walmart purchases in stores
- 2% back at Walmart Fuel Stations, which includes Murphy gas stations
Cardholders also receive the 5% introductory offer for using Walmart Pay in stores for the first 12 months after approval (then 2% back).
Credit score requirements
Capital One is known for its transparency with the credit requirements for its credit cards. Mouadeb tells CNBC Make It that these new cards are aimed at consumers across the credit spectrum with broad eligibility for people with good to excellent credit.
According to credit bureau Experian, that credit range would represent a FICO Score of 670 or greater. However, it's key to note that Capital One may use another range that's higher or lower than Experian's.
On Capital One's website, the company provides credit level guidelines, which may help you gauge your creditworthiness for the Walmart credit cards. Below, we list the credit ranges.
- Rebuilding credit: You've defaulted on a loan more than once or you've been declined for a credit card in the last three months.
- Average credit: You've defaulted on a loan in the past five years or have limited credit history (you've had a credit card or other credit for less than three years — including students, people new to the U.S. or authorized users on someone else's credit card).
- Excellent credit: You've never declared bankruptcy or defaulted on a loan; haven't been more than 60 days late on any credit card, medical bill, or loan in the last year and have had a loan or credit card for three years or more with a credit limit above $5,000.
How to apply for the new cards
The new cards include various digital-first features that make it convenient to apply, earn and redeem rewards from the palm of your hand.
Interested applicants can apply for the card in traditional ways, such as at Walmart.com, CapitalOne.com or within the Walmart app. Walmart and Capital One also created a new mobile application experience where applicants can text to apply from anywhere and complete the application from their mobile devices.
If you're approved, simply verify your identity and you'll receive instant access to your card for Walmart purchases. And if you sign up for Walmart Pay or already have an account, you can load the card into the Walmart app for use in-store and on Walmart.com.
How current Walmart cardholders are affected
Starting October 11, current Walmart cardholders will be converted to the Capital One® Walmart Rewards Mastercard® or the Walmart Rewards Card and will start benefiting from the new rewards program.
As an added perk, current cardholders are also eligible for the special introductory offer of 5% back on in-store purchases when using Walmart Pay, through October 14, 2020.
Expect to receive a new card later this year or early next year. Your card will have the same number, but the expiration date and security code will change.
Non-Mastercard® Walmart cards will no longer be accepted for purchases at Sam's Club.
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