Capital One Walmart Rewards® Mastercard® Review

In today’s world, where convenience and savings are paramount, a credit card that offers robust rewards, particularly in everyday spending categories, can be a game-changer. Among the myriad of options available, the Capital One Walmart Rewards® Mastercard® stands out, especially for those who frequently shop at Walmart. As a financial expert, I’ve delved deep into its offerings, benefits, and potential drawbacks to provide you with a comprehensive review. Let’s explore this card in detail and see if it aligns with your financial goals and spending habits.

Capital One Walmart Rewards® Mastercard® Key Takeaways

– No Annual Fee: This card does not charge an annual fee, making it a cost-effective option for budget-conscious consumers.
– Generous Cash Back Rates: Earn 5% cash back on purchases at Walmart.com, including pickup and delivery, and 2% cash back in Walmart stores, at restaurants, and on travel. All other purchases earn 1% cash back.
– Enhanced Rewards for the First Year: Earn 5% cash back in Walmart stores for the first 12 months after approval when using Walmart Pay.
– Travel and Purchase Protection: Includes MasterRental Coverage, Trip Cancellation/Interruption Insurance, and more, which can be particularly beneficial for frequent travelers.
– Variable APR: Purchase APR ranges from 19.48% to 29.99%, which can be high for those who carry a balance.
– No Foreign Transaction Fees: A significant perk for international travelers.
– Fair to Good Credit Required: Applicants with a credit score between 580-739 are likely to be approved.

Capital One Walmart Rewards® Mastercard® Pros and Cons

Pros

1. No Annual Fee: Unlike many rewards cards, the Capital One Walmart Rewards® Mastercard® doesn’t charge an annual fee, allowing you to earn rewards without an upfront cost.
2. High Cash Back Rates: The card offers competitive cash back rates, particularly for Walmart.com purchases and in-store purchases during the first year.
3. No Foreign Transaction Fees: This benefit makes it an excellent choice for those who travel internationally.
4. Comprehensive Travel Protections: Enjoy peace of mind with MasterRental Coverage, Trip Cancellation/Interruption Insurance, and other travel-related benefits.
5. Flexible Rewards: Rewards can be redeemed in various ways, including statement credits, gift cards, and travel.

Cons

1. High APR: The variable APR of 19.48% – 29.99% can be costly for cardholders who carry a balance.
2. No Intro APR Offer: The card lacks a 0% introductory APR period for purchases or balance transfers, which might be a drawback for those looking to finance large purchases or pay down debt.
3. Walmart-Centric Rewards: While the card offers high rewards for Walmart purchases, the rewards for other spending categories are relatively low.
4. Balance Transfer Fees: Although there are no fees for balances transferred at the Transfer APR, a 3% fee applies to balances transferred at a promotional APR.

Capital One Walmart Rewards® Mastercard® Benefits

Cash Back Program

The cornerstone of the Capital One Walmart Rewards® Mastercard® is its robust cash back program. Here’s a breakdown of the rewards:
– 5% Cash Back at Walmart.com: This includes pickup and delivery orders, making it incredibly convenient for online shoppers.
– 2% Cash Back in Walmart Stores, Restaurants, and on Travel: A well-rounded reward rate for common spending categories beyond Walmart.
– 1% Cash Back Everywhere Else: While this rate is lower, it’s consistent with what many other cash back cards offer for general purchases.
– 5% Cash Back in Walmart Stores for the First 12 Months: When you use Walmart Pay, you earn an enhanced rate, making it highly attractive for new cardholders.

Travel Benefits

For a card primarily focused on retail rewards, the Capital One Walmart Rewards® Mastercard® offers an impressive suite of travel protections:
– MasterRental Coverage: Provides coverage for damages to a rental vehicle due to collision, theft, vandalism, or accidental fire when the cardholder pays for the entire rental with the eligible Mastercard.
– Lost or Damaged Luggage: Cardholders are reimbursed when checked luggage is delayed or lost in transit. This benefit is in excess of the common carrier’s liability insurance.
– Trip Cancellation/Interruption Insurance: Reimburses pre-paid, non-refundable travel expenses such as airfare, cruises, train tickets, and hotel stays.
– Travel Assistance Services: Offers pre-trip destination information, emergency medical and legal referrals, and assistance with lost luggage.

Purchase Protections

The card also comes with several purchase-related protections, adding value to your everyday spending:
– Purchase Protection: Covers eligible purchases against damage or theft within a specific time frame.
– Extended Warranty Protection: Extends the manufacturer’s warranty on eligible items.
– Fraud Protection: Safeguards against unauthorized transactions.

Fees and Interest Rates

Understanding the fee structure and interest rates is crucial for maximizing the benefits of any credit card. Here are the key details:
– Annual Fee: $0
– Purchase APR: 19.48% – 29.99% Variable
– Intro Balance Transfer APR: None
– Balance Transfers APR: 19.48% – 29.99% Variable
– APR for Cash Advances: 29.99% Variable
– Balance Transfer Fee: 3% of the amount of each transferred balance that posts to your account at a promotional APR.
– Cash Advance Fee: Either $3 or 3% of the amount of each cash advance, whichever is greater.
– Late Payment Fee: Up to $39

How to Avoid Paying Interest

– Grace Period: Your due date is at least 25 days after the close of each billing cycle. You will not be charged interest on new purchases if you pay your previous balance in full by the due date each month.
– Interest on Cash Advances and Transfers: Interest on cash advances and transfers is charged on the transaction date.

Managing Your Account

Capital One offers several convenient ways to manage your account and pay your bill:
– Online Account Management: Pay your bill online through the Capital One website or mobile app.
– Customer Service: Reach out to customer service for assistance with your account.

Conclusion

The Capital One Walmart Rewards® Mastercard® is a compelling option for those who frequently shop at Walmart and are looking for a card with no annual fee. The high cash back rates on Walmart.com purchases and the enhanced rewards for in-store purchases during the first year make it particularly attractive for Walmart loyalists. Additionally, the travel and purchase protections add substantial value, making it a well-rounded card for both everyday spending and travel.
However, the relatively high APR and the lack of an introductory APR offer might be a concern for those who plan to carry a balance or are looking for a card to finance large purchases. Additionally, while the rewards for Walmart and select categories are generous, the 1% cash back rate for other purchases is relatively standard.
Ultimately, the Capital One Walmart Rewards® Mastercard® shines as a specialized rewards card for Walmart shoppers, offering significant savings and benefits with no annual fee. If you align with its strengths and are mindful of its limitations, this card can be a valuable addition to your wallet.