A Walmart credit card does build credit, just like any other major credit card, as long as you use the card responsibly. That generally means paying your Walmart card bill on time every month and not maxing out your total credit limit. You can learn more from WalletHub’s guide on how to build credit.
Yes, a Walmart credit card does build credit. The Capital One Walmart Rewards® Mastercard® and the Walmart® Store Card report account activity to credit bureaus monthly, which means a Walmart card can help build a solid credit history as long as the cardholder pays the bill on time and stays well below the card’s credit limit.
The Walmart credit cards’ $0 annual fees also make them especially good for building credit because you can hold onto either card indefinitely without having to pay for it every year. Just be sure to make at least one transaction every 12 months and pay the bill, preferably in full, by the due date in order to keep the account active and in good standing. A pattern of late payments could quickly damage your credit score, after all.
The Walmart Credit Card credit score requirement is 640 or higher. That means people with fair credit or better have a shot at getting approved for this card. The Walmart® Store Card also requires at least fair credit for approval.
Other things you need for the Walmart Credit Card:
You should note that while your credit score is an important factor, there are plenty of other things that will impact your chances of being approved for the Walmart Credit Card, too. Some other key criteria include your income, existing debt load, number of open accounts, recent credit inquiries, employment status and housing status.… read full answer
Since all these criteria are taken into consideration, you might be able to get approved with a slightly lower credit score. But it’s best to wait to apply until you meet the Walmart Credit Card credit score requirement. You can check your credit score for free on WalletHub.
Yes, store credit cards can help build credit, if you use them wisely. Store credit cards report your payment history to credit bureaus the same as a regular consumer credit card. If you make timely payments for more than the minimum due, and stay within your credit limit, a store credit card can go a long way in building, or even rebuilding your credit.… read full answer
A store credit card is a card offered by a retailer. It's not to be confused with a charge card, in that a store credit card does not require you to pay off the entire balance every month. Store credit cards are also known as closed-loop cards, which means it can be used only for purchases within the store, its website, or affiliated stores. Retailers may also offer open-loop, or co-branded store cards. They're store cards, but they're on a credit card network such as Visa and Mastercard, and can be used anywhere the network's cards are accepted.
You can use a store credit card to help build credit because they're generally easier to get. Most store credit cards require a minimum fair credit score to have a chance of being approved. The drawback is that you'll likely start out with a higher interest rate and a lower credit limit than you would with a co-branded credit card. Co-branded store cards also come with stricter approval requirements.
Where you can run into trouble with a store credit card is the temptation to overspend. Your favorite retailer may bombard you with promotional offers, discounts and sales announcements. It's pretty easy to make additional purchases in the store, or online, thinking your sales item purchases will make up the difference.
In the end, you'll end up canceling out any discounts and burning up most of your credit limit. That doesn't bode well for your credit utilization, which should be at less than 30% of your available credit. And then there's the interest that will be tacked on if you have to carry a balance to the next month.
Speaking of interest, be wary of any 0% promotional offers, particularly for large purchases. Unlike a 0% APR you'll find on some regular credit cards, over half of all store cards operate on deferred interest, according to a WalletHub study. If you don't pay off the balance by the end of the promotional period, you'll be charged all the interest accrued on the original purchase price.
So store cards can definitely help you build credit, as long as you pay your bills on time and preferably in full, while maintaining a low credit utilization. The same rules apply to a regular credit card, so feel free to check out more tips on how to build credit with a credit card. Some of the best store credit cards offer extensive rewards and are worth getting, especially if you already shop at their respective stores.
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