What the Walmart Credit Card Is
The Walmart Credit Card is a store card issued by Synchrony Bank that you can use at Walmart and Sam's Club locations. Unlike a general-purpose credit card, it works only at those retailers (though you can use it online and in stores). Walmart offers two versions: the regular Walmart Credit Card and the Walmart Rewards Card, which earns cash back on purchases.
Store cards are simpler to understand than bank credit cards because they have fewer moving parts. You get a credit limit, you make purchases, you receive a monthly bill, and you pay interest if you carry a balance. The trade-off is that you cannot use the card anywhere else, and the interest rates are typically higher than what you would see on a general-purpose card.
Key Takeaways
- The Walmart Credit Card charges interest rates between 16% and 24% depending on your credit history, which is higher than most bank credit cards.
- The Walmart Rewards Card earns 2% cash back on Walmart purchases and 1% on everything else, but only if you pay your full balance each month to avoid interest charges.
- Both cards offer promotional financing periods where you pay no interest on large purchases if you pay them off within a set timeframe, typically 12 to 24 months.
- You need to check your credit limit and available balance before checkout, because the card will decline if you exceed your limit, even if you have room on other cards.
- Walmart reports your payment history to the three major credit bureaus, so on-time payments help your credit score and late payments hurt it.
Interest Rates and How They Work
The Walmart Credit Card charges a variable interest rate, which means the rate changes over time based on market conditions. When you open the account, Synchrony assigns you a rate based on your credit score and credit history. That rate typically falls between 16% and 24%, though the exact number depends on what Synchrony sees in your credit report.
The interest rate applies only to balances you carry from month to month. If you pay your full statement balance by the due date each month, you pay zero interest, no matter how high your rate is. Interest charges begin only on the day after your payment due date if any balance remains unpaid.
The monthly interest charge is calculated by taking your average daily balance, multiplying it by your annual interest rate, and dividing by 12. This means that even small balances left unpaid can cost you money. For example, a $500 balance at 20% interest costs about $8.33 in interest that month alone.
Rewards and Cash Back
The standard Walmart Credit Card offers no rewards. You get a discount only during promotional periods that Walmart runs throughout the year, such as 5% off certain categories for a limited time.
The Walmart Rewards Card earns 2% cash back on all Walmart purchases (in-store and online) and 1% cash back on all other purchases. The cash back appears as a statement credit on your monthly bill. To earn the full 2% at Walmart, you must use the Walmart Rewards Card specifically; the regular Walmart Credit Card does not earn cash back.
The catch is that the cash back benefit only makes financial sense if you pay your full balance each month. If you carry a balance and pay 20% interest, the 2% cash back is wiped out by the interest charges within the first month. The math only works in your favor if you treat the card as a tool to pay off when ready, not as a way to borrow money.
Promotional Financing Periods
Both Walmart cards offer promotional financing, which means you can make a large purchase and pay no interest if you pay it off within a set timeframe. These offers change throughout the year, but common terms are 12 months, 18 months, or 24 months with no interest.
The key rule is that you must pay off the full promotional purchase within the promotional period. If you miss even one payment or leave a balance unpaid when the period ends, Synchrony charges you interest on the entire original amount, not just the remaining balance. That interest is charged retroactively, meaning you owe it all at once.
For example, if you buy a $1,200 television on a 24-month promotional offer and pay $49 per month for 23 months, then miss the final payment, you owe interest on the full $1,200 from the original purchase date, not just the $49 you still owe. This can add hundreds of dollars to your bill. Read the promotional terms carefully and set a phone reminder for the final payment date.
Credit Limit and How It Affects You
When you open a Walmart Credit Card account, Synchrony assigns you a credit limit based on your credit score, income, and credit history. This limit is the maximum you can charge to the card. If you try to make a purchase that would push you over the limit, the card will decline at checkout.
Your credit limit is separate from your available balance. Available balance is your credit limit minus what you currently owe. If your limit is $1,000 and you owe $600, your available balance is $400. Once you pay down the balance, your available balance increases again.
Walmart may increase your credit limit over time if you make on-time payments and keep your balance low. You can also request a limit increase by calling the customer service number on the back of your card. A higher limit gives you more flexibility, but it also makes it easier to overspend if you are not careful.
How Walmart Reports Your Account to Credit Bureaus
Synchrony reports your Walmart Credit Card account to Equifax, Experian, and TransUnion — the three major credit reporting agencies. This means your payment history, credit limit, and balance appear on your credit report and affect your credit score.
On-time payments help your credit score because payment history is the largest factor in how credit scores are calculated. Late payments hurt your score and stay on your report for seven years. A single 30-day late payment can drop your score by 100 points or more, depending on your starting score.
Your credit utilization — the percentage of your credit limit that you are using — also affects your score. If your limit is $1,000 and you carry a $900 balance, your utilization is 90%, which signals risk to lenders and lowers your score. Keeping your balance below 30% of your limit helps your score.
Comparing the Walmart Card to Other Options
The Walmart Credit Card makes sense only if you shop at Walmart regularly and can pay your balance in full each month. If you carry a balance, the 16% to 24% interest rate is expensive compared to general-purpose credit cards, which often offer rates between 12% and 18% for borrowers with similar credit profiles.
If you want cash back rewards, a general-purpose card like the Chase Freedom Unlimited or Capital One SavorOne offers 1.5% to 3% cash back on all purchases and works anywhere. The Walmart Rewards Card's 2% back at Walmart is competitive, but only if you shop there frequently enough that the rewards outweigh the higher interest rate if you ever carry a balance.
If you have fair or poor credit and cannot get approved for a bank credit card, a Walmart store card may be easier to open because Synchrony has less strict approval standards. However, the higher interest rate means you pay more for the privilege of borrowing. If you do get approved, use it to build payment history, then move to a lower-rate card once your credit improves.
Frequently Asked Questions
What happens if I miss a payment on the Walmart Credit Card?
A missed payment is reported to the credit bureaus after 30 days and damages your credit score. Synchrony will charge you a late fee (typically $25 to $35 for the first late payment) and may increase your interest rate. If you miss a promotional financing payment, the entire promotional purchase becomes subject to interest retroactively.
Can I use the Walmart Credit Card at other stores?
No. The Walmart Credit Card works only at Walmart and Sam's Club locations, both in-store and online. It cannot be used at other retailers. If you need a card that works everywhere, you need a Visa, Mastercard, or American Express from a bank.
How do I pay my Walmart Credit Card bill?
You can pay online through the Synchrony website, by phone, by mail, or in-store at Walmart customer service. The due date is printed on your monthly statement. Payments made online typically post within one business day.
Will opening a Walmart Credit Card hurt my credit score?
Opening any new credit account causes a small, temporary drop in your score because Synchrony pulls your credit report (a hard inquiry). This drop usually recovers within a few months. Over time, on-time payments and a low balance help your score recover and grow.
Can I transfer a balance from another credit card to the Walmart Credit Card?
No. The Walmart Credit Card does not offer balance transfers. You can only charge new purchases to the card. If you want to move debt from another card, you need a different card that offers balance transfer options.