Thread: Walmart Credit Card Exposed

Did a cashier peddle you the Walmart credit card application during checkout? This 2013 review will show you the ugly truth.

Recently I was speaking with a relative who said she wanted to apply for a Walmart credit card. When I asked her why, she said “Because Walmart is a good place to save money.” Well, you can’t deny that, but that same philosophy doesn’t apply to their credit card. Here’s why…

Rewards?
Believe it or not, the only rewards offered on the store version of the Walmart card is a measly 5 cent gallon discount at their participating gas stations. Please note that's only 5 cents, NOT percent. And aside from that, there is no cash back or points earned on any of your spending!

When you consider how outrageous gas prices are nowadays, this 5¢ discount is pathetic... as long as gas is above $4/gallon you are earning less than 1.25% cash back. At $4.50 per gallon it’s only 1%. Why bother when even your run-of-the-mill credit card will probably give you at least 1% in rewards? You would be better off with something like this instead...

The Walmart Discover card does give rewards elsewhere but they're nothing to write home about:

• 0.25% on total annual spending up to $1,500
• 0.50% on total annual spending from $1,500.01 to $3,000
• 1.00% on total annual spending over $3,000

Something to keep in mind is the this Discover credit card is not issued by Discover! It only operates over the Discover payment network (like a Visa or MasterCard). The actual card itself is issued and managed by GE Money.

Interest Rate?
As I write this review, the APR on this credit card is a crazy 22.90 percent on both the regular and Discover card. We all know carrying a balance is a bad idea, but is it really fair for us to pay through the nose if we do?

Acceptance?
The regular Walmart card can only be used for purchases at their stores. Everywhere else it’s totally useless. On the other hand the Discover can be used elsewhere, but with no bonus categories for higher rewards it's not too exciting, is it?

Customer Service?
Their cards are issued by GE Capital Retail Bank (formally known as GE Money Bank) which is a big issuer of store cards and are notorious for their subpar service. The number of negative GE Money Bank card reviews posted on this website and elsewhere speaks volumes as to the service (or lack thereof) they offer.

Benefits?
The Walmart credit card benefits are lacking, to say the least. There isn’t an annual fee (whoop de doo) and other than that, the only benefit I see worth mentioning is that once per day, you have the ability to get cash back at the register when paying (similar to what you can do with an ATM card).

Verdict?
It’s hard to find one good reason to fill out an application for the Walmart cards. At my local store they were trying to convince people to apply for the card by giving them a free 2 liter bottle of soda. I don’t know about you, but It’s going to take a heck of a lot more than that for me to ever consider this piece of crap!

More recently for 2013 I've seen they're offering a $20 bonus after you open an account and spend a hundred. Why care about $20 when you can do much better elsewhere!

I tried getting a wal-mart credit card and was denied and this was before economy crashed and I had good credit.

I signed up for a walmart credit card about 6 months ago and then I realized it was dumb so I cancelled it. I bought one chair on it for $100. Then I paid the card and then I waited about 5 months and cancelled the card..

How will this affect me? I'm only 21 and I didn't really know I was signing up for a CC, the guy at the cash register tricked me.

I tried getting a wal-mart credit card and was denied and this was before economy crashed and I had good credit.

I'm pretty certain this was due to what you filled out not matching what was in your credit report. 70% of reports have errors, and often this causes applications to become rejected.

@credit card guru- why do you hate on EVERYTHING? Wal*mart employs thousands of people and gives many americans jobs. While they may not pay alot NO ONE MAKES ANYONE work at wal mart. If you work at wal mart THAT IS YOUR CHOICE. No one makes you work there. Its better than working for a company that is laying off and is going under. Plus they have excellent prices. And in this economy EVERYONE can benefit from that. So I don't know why you are hating. Who are you to bash wal mart? You don't work there. So unless you HAVE worked there and have experienced what its like.... well you can figure out the rest. Wal mart was my first job when I was in high school. It was fine. I wanted a job with more pay.. so I left... and every employee that works there has the SAME opportunity if they don't like it. AS far as the credit card.... it is issued by GE MONEY bank. Not directly from wal mart. And as a former account holder of the GE MONEY BANK wal mart credit card... Yes... it does suck.

Well, over here (I don't live in the USA) the Walmart card gives 1.25% cashback on everything in their stores.

I am not critical of the Walmart credit card but would like to know why people get all types of random cards for every place they shop. If the reward programs are similar why would you need to get a card for each place. Can't one credit card do the trick just fine?

Ok, totally agreed here. Not so much on Walmart, JCPenneys etc. etc. it is GEMB in my opinion. Look, there is a way to use these cards and there is a way to not use these cards. If you are loyal to Penneys or Walmart and responsibly use these two cards in a charge card manner without running a balance: more power to people like us. If you are building credit and are not loyal to these two stores and want to carry a balance etc. maybe to lock a debt-to-credit ratio the guru is correct do not bother with this junk.

My Walmart card is my gas card straight and simple. No balance, no interest. My mother works a JCPenneys, same bank GEMB and same setup, I have her as an authorized user and instead of her swiping her debit card she uses my Penneys card racking up rewards and discounts etc. and just writes me a check for the statement balance. Given there are NO rewards for having a walmart card, BUT it is better than having a stupid gas card which is even more hoki-dok than having a Walmart card in my opinion haha.

Hey if you have a charge card mentality and you have store loyalty to a Walmart/Pennys etc. go for it. Do not try and establish good credit by running balances on junk like this. The cost for doing that is high, 29%/23%, and the reward is... basically nothing. I am a BIG charge card mentality consumer, my AMEX is my goto, I have two major credit cards cap one was my first which is junk, but I will never close my first card for length of history purposes and my citi forward card. Both are locked at 7% debt-to-credit with Penneys, Walmart, AMEX @ zero. I am under three years for length of history so I am just locked up getting time under my belt, when I cross three years I will be doing great. Inquiries 0/1/1, Sometimes in the credit game you just have to sit back and grow a little.

If you are thinking of a GEMB and you are not a big pay-in-full guy or gal do not go for a GEMB you will get your lunch eaten with interest.