Review of Walmart Credit Card



The Walmart Credit Card was last reviewed on 7th January 2006

Summary - The Walmart credit card allows the cardholder to shop at Wal-Mart, SAM'S CLUB, Walmart.com, Thrifty Car Rental and AOL. There is no annual fee and you also get the occasional special financing offers from Walmart. You also get preferential rates for prepaid AT&T; long distance. This card will appeal to those who shop at Walmart frequently and perhaps looking to build a credit history. However, for those who have better credit and want to earn better rebates, either the Citi® Dividend Platinum Select® Card or the Chase Cash Plus® Rewards Card would be better alternatives as they pay 5% rebates on standalone purchases at supermarkets, gas stations and drugstores.

Features and Benefits - The Walmart credit card can be used at Wal-Mart, SAM'S CLUB, Walmart.com, Thrifty Car Rental and AOL. You can save 3� per gallon at participating Wal-Mart and SAM's Club gas stations. Furthermore, you can get better rates for pre-paid AT&T; long distance.

Fees - There is no annual fee for the Walmart Credit Card. The apr will depend on your credit. Walmart premier accounts get an apr of prime rate plus 4.12% (but the absolute rate cannot go below 9.87%). Preferred accounts get an apr of prime rate plus 10.12% (min rate is 15.87%). Choice account members get an apr of prime rate plus 14.12% (min rate is 19.87%). You get 25 days of grace period and the average daily balance method (including new purchases and cash advance) is used to calculate monthly balances.

Walmart Discover Card - It is also important to note that the Discover also has a Walmart card with similar features, but with two additional benefits. Firstly, it can be used any Discover cards are accepted. Secondly, you can earn cash rebates with the card. The cash rebate formula is shown below.

Amount of YTD Purchases Rebates
Up to $1,500 0.25%
$1,500-$3,000 0.5%
Over $3,000 1%


The rebate formula is a tiered one in that you need to spend above a certain amount to earn maximum rebates. Frankly speaking, the rebates you get using this card is not impressive at all as almost all cash rebate credit cards give cardholders a straight 1% rebate on all purchases without requiring any spending above a certain amount.

Conclusion - For those who shop frequently at Walmart but do not have a good enough credit to get a regular unsecured card, the Walmart credit card will be a good card to start building one's credit, and also get additional benefits from shopping at Walmart.

For those with better credit, we recommend getting either the Citi® Dividend Platinum Select® Card or the Chase Cash Plus® Rewards Card. Both these cards pay 5% rebates on purchases at standalone supermarkets, gas stations and drugstores and 1% rebates on other purchases. You should the 5% rebates for grocery purchases at Walmart supercenter. Both cards also have no annual fee.

Positives
  • No annual fee
  • Save 3 cents a gallon for gasoline at Walmart or Sam's Club


Negatives
  • Retail store card - can only used at Wal-Mart, SAM'S CLUB, Walmart.com, Thrifty Car Rental and AOL



Walmart Credit Card
Cost/Fees/Interest rates
Annual Fees No annual fee
Purchase APR Premier accounts - prime rate plus 4.12% (min rate is 9.87%)
Preferred accounts - prime rate plus 10.12% (min rate is 15.87%)
Choice account - prime rate plus 14.12% (min rate is 19.87%).
Cash Advance APR n.a.
Penalty/Default Rate P+19.24% (min rate is 24.99%)
Min Finance Charge $1.00
Grace Period 25 days
Balance Calculation Method Average Daily Balance (including new purchases)
Balance Transfer Fee n.a.
Cash Advance fee n.a.
Over-the-credit-limit fee $25.00
Late Payment fee Except in PR and IA, $0 if the account balance at the time the delinquent Minimum Payment is calculated is less than $30; $14.97 if the balance is $30-$49.99; $19.97 if the balance is $50-$99.99; $24.97 if the balance is $100-$299.99; and $28.97 if the balance is $300.00 or greater. In PR and IA the Late Payment Fee will be $0 if the balance is less than $30; $24.97 if the balance is $30 or greater.



If you already have this card, we appreciate your feedback and review as it will help our readers make better informed credit card decisions. You can post your review here.


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