Can a Walmart Credit Card Help Build Credit?

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Can a Walmart Credit Card Help Build Credit?

Walmart Inc. (WMT) provides two credit cards: the Walmart Rewards Mastercard, which may be used everywhere Mastercard is accepted, and the Walmart MoneyCard, which is a store credit card.

Capital One issues the Walmart Points Mastercard and its in-store credit card, and cardholders may earn rewards for shopping at Walmart. Both cards, when used appropriately, may help you increase your credit history and credit score.

You may ensure that your account activity is reported to the three credit agencies by examining the terms and conditions of the Walmart Rewards Mastercard and Walmart MoneyCard (Equifax, Experian, and TransUnion).Your account balance and a series of late payments will show on your credit history, which is used by credit bureaus to determine your credit score.

Discover the tactics listed below to help you develop credit with these two credit cards.

Key Takeaways

  • If used appropriately, both the Walmart Mastercard and the in-store credit card may help you establish credit.
  • If you buy at Walmart on a weekly basis for household necessities, you might consider using a Walmart credit card instead of cash. You may build credit and get prizes if you pay it off every week.
  • Capital One will offer both Walmart cards beginning in 2021.
  • Both cards charge up to $39 in late fees.

Make Payments on Time

Making on-time monthly payments is the single most critical thing you can do to enhance your credit, whether you’re just starting out or seeking to boost it. Payment history is the most important component of a strong credit score, accounting for 35% of your FICO credit score. 1 You improve your payment history and prevent late payment costs by paying on time.

  What Is a Good Credit Score?

If you miss a payment deadline, you must make it up within 30 days. A late payment is not recorded to a credit agency unless it is paid within 30 days of the due date. You will, however, be liable for any relevant late payment costs (up to $39 with any Walmart card). 2

You can only use your Walmart MoneyCard at Walmart. Your Walmart Rewards Mastercard may be used everywhere Mastercard is accepted.

Maintain a Low Balance

Maintain a low credit card debt by paying off the whole sum each month. The amount outstanding accounts for 30% of your FICO credit score. 3 You may improve your credit score by maintaining a low credit use ratio. Most credit providers want a credit usage percentage of less than 35%.

Keep Your Account Open

Don’t cancel your credit card. As the duration of your credit history increases, so does your credit score. Keep your Walmart Mastercard or Walmart MoneyCard open even if you no longer use it, particularly if it is your first or only credit card.

Enroll in Electronic Statements

When you sign up for electronic bills with your Walmart credit card, you may also sign up for a monthly FICO credit score to monitor your progress. Keeping track of your score on a frequent basis can verify that your personal and account information is valid and may assist in detecting indicators of possible identity theft. Furthermore, seeing your credit score rise will keep you motivated to continue growing it!

The Bottom Line

Walmart cards, like any credit cards, may help customers improve their credit ratings and histories if used responsibly.

  American Express and Morgan Stanley Team Up to Offer Cash-Back Credit Card

If you are new to credit cards or are concerned about credit card debt, applying for a Walmart in-store card that can only be used at Walmart may be more beneficial. Once your credit score has improved, you could consider applying for a Walmart Mastercard, which can be used for transactions other than Walmart.

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