MORE LIKE THISCredit CardsCash Back Credit CardsStore Credit Cards
TOPLINE:
Many people who carry Walmart-branded credit cards reported that their credit scores dropped soon after the retailer switched issuers in October 2019, moving from Synchrony to Capital One. Unfortunately, temporary declines in credit scores can occur as a side effect of these kinds of transitions.
KEY FACTS:
As of Oct. 28, 2020, Capital One confirms that all the accounts transferred should now be showing up on cardholders' credit reports. That means that if your credit score dipped during the transition, it should have bounced back, assuming that nothing else in your credit file changed significantly.
When Walmart's credit card business moved from Synchrony to Capital One on Oct. 11, the old Synchrony accounts were reported to the credit bureaus as sold and closed. But in many cases, the new Capital One accounts had not yet been added to cardholders' credit reports. During this period, scores dropped for a time for affected cardholders. In some cases, credit scores dropped sharply for those with few or no other credit cards or loans on their credit reports. But when the Capital One account began showing up on credit reports in the following days and weeks, credit scores recovered.
Short-term declines in credit scores as a result of issuer transitions are rooted in how creditors report account information to credit bureaus, the companies that compile the credit reports that form the basis of credit scores.
KEY BACKGROUND
Existing holders of Synchrony-issued Walmart cards were sent a new Capital One card that's eligible for the new Walmart rewards program — but they didn't have to apply for it, and it won't be treated as a new account.
That’s good news if you’re shopping for a mortgage or auto loan, for example. When you apply for credit and issuers pull your credit reports in the course of making a decision, it generally triggers a hard inquiry. A hard inquiry can temporarily ding your credit scores, and it can remain on your credit report for two years.
But in cases like these, where you’re not actively applying for new credit, you shouldn’t get hit with a hard inquiry.
“The transition of the account to Capital One will not be considered an application for credit,” Daniel Mouadeb, senior vice president and head of the Walmart partnership at Capital One, said in an email prior to the transition, when asked when if it would trigger a hard inquiry.
TANGENT
When Walmart cardholders look at their credit reports after the transition is complete, they can expect it to be a bit longer than before.
“There will be two tradelines on the credit report — the old Synchrony account and the new Capital One account.”
Lisa Lanspery, Senior vice president of public relations at Synchrony
A "tradeline" is a credit account reported to credit bureaus that includes details about your payment history.
The Synchrony tradeline should show the date that the original account was opened, and it should indicate that the account has been sold to Capital One.
The Capital One tradeline should show the same account opening date as the Synchrony tradeline.
Capital One has confirmed that the dates will be the same. For example, if you opened your Walmart credit card in January 2017, the new Capital One tradeline on your credit report would also show that you opened the account at that time. That’s reassuring for longtime cardholders concerned about losing their card’s history in the transition. Length of credit history is among the major factors that determine your credit scores.
It's also in line with credit-reporting conventions. Under the current reporting format, issuers are required to report accounts that have been purchased with the same “open date” and payment history as reported by the former lender, assuming the old issuer converts cardholders’ account history to the new issuer’s system. Additionally, the previous issuer is required to report such an account as sold.
In such transitions, "the average age of accounts would likely not change," Griffin of Experian says.
KEY RESOURCES
When a big credit card portfolio moves from one issuer to another, the transition can be incredibly complicated. There’s a chance you might run into some hiccups — or perhaps something about how your account is reported just doesn’t make sense to you. But when two issuers are involved, which one should you turn to for help? It depends.
“Cardholders should contact the institution who reported the credit data,” Mouadeb said via email. “For information about the Capital One account on their credit file, they should contact Capital One.”
Likewise, “any questions relative to account reporting prior to the transfer will be handled by Synchrony,” Lanspery of Synchrony said in an email.
Keep in mind that during the first few days of a big transition, customer service lines might be overwhelmed. Unless your question is urgent, consider calling at a later time; you might be able to get a faster answer.
FURTHER READING
More about the Capital One® Walmart Rewards™ Mastercard® |
New Walmart Mastercard: 5% Back at Walmart.com, Rewards Everywhere Else Full review of the Capital One® Walmart Rewards™ Mastercard® What Walmart's Upgraded Cards Have In Store for Shoppers How the Capital One® Walmart Rewards™ Mastercard® Stacks up vs. Competitors Should You Apply for the Capital One® Walmart Rewards™ Mastercard®? How to Get the Most Out of the Capital One® Walmart Rewards™ Mastercard® What Walmart's Switch to Capital One Means for Your Credit
|
This article has been updated. NerdWallet staff writer Kimberly Palmer contributed to this article.
FAQs
Many people who carry Walmart-branded credit cards reported that their credit scores dropped soon after the retailer switched issuers in October 2019, moving from Synchrony to Capital One. Unfortunately, temporary declines in credit scores can occur as a side effect of these kinds of transitions.
Is Capital One Walmart a good credit card? ›
Editor's Review
The Capital One Walmart Rewards® Mastercard® is a good credit card for people who frequently shop at Walmart, especially Walmart.com. The Walmart Card's rewards rates range from 1% to 5% back, depending on the type of purchase made.
Does Capital One Walmart give credit increases? ›
The Capital One Walmart Rewards® Mastercard® will increase your credit limit no more than once every six months generally. This time frame applies whether you request a credit limit increase yourself or wait for Capital One to offer you an automatic increase.
What credit score do you need to get approved for a Capital One Walmart rewards card? ›
You'll need good to excellent credit to qualify for a Capital One Walmart Rewards® Mastercard®. A credit score of 670 or higher is considered good on the FICO Score range. You'll need good to excellent credit to qualify for a Capital One Walmart Rewards® Mastercard®.
Can I get a Walmart credit card with a 520 credit score? ›
You probably can't get a Walmart Credit Card with bad credit because this card requires at least fair credit for approval. That means your chances are best if your credit score is 640+. The Walmart® Store Card has the same credit score requirements, too.
What is the credit limit on the Capital One Walmart card? ›
While the minimum credit limit on the Capital One Walmart Rewards® Card is $300, the actual amount will be based on your creditworthiness. Lenders determine this by looking at several factors, including your annual income, debt-to-income ratio and credit score.
What is the credit limit for Walmart Capital One? ›
Applicants need to have at least fair to good credit to be approved for the Walmart Rewards card. Once approved, you can automatically add your card to Walmart Pay to use it instantly. Credit limits start at $300, but your limit depends on your credit score, debt-to-income ratio and annual income.
How often does Capital One increase your credit limit? ›
Cardholders in good standing (e.g. good credit score, consistent on-time payments) may also receive an automatic credit limit increase once or twice a year. If requesting an increase from Capital One, approval can happen immediately or could take up to 30 days to process.
How often does Walmart increase your credit limit? ›
Yes, it's possible to get a credit limit increase without asking, typically after 6-12 consecutive months of on-time bill payments with a new credit card account.
Does Capital One ever raise your credit limit? ›
You can ask for a credit limit increase whenever you want. It depends on your unique circ*mstances. You may want to request one if your credit score has improved, your income has increased or you've had your card for at least six months. Policies for credit limit increases differ from issuer to issuer.
Some of the easiest store credit cards to get are the Fingerhut Credit Account, the Montgomery Ward Credit Account, and the Amazon Secured Credit Card. These cards accept people with “bad” credit, and they all have $0 annual fees.
What's the lowest credit score for a Walmart credit card? ›
You need a credit score of 640 or higher to get a Walmart credit card. This means you are eligible if you have fair credit or better, but factors such as your income, existing debt load, recent credit inquiries, employment status, and housing status will also impact your chances.
What is minimum credit score for Capital One? ›
You need a credit score of at least 700 (good credit) for the best Capital One credit card offers. However, other options are available for people with lower scores. It is possible to get approved for a credit card from Capital One with limited credit history or a bad credit score, for example.
How hard is it to get approved for a Walmart credit card? ›
No, it's not hard to get a Walmart Credit Card. You only need fair credit to qualify for a Walmart Credit Card, so you should have a good chance of getting approved as long as your credit score is 640 or higher, you have a steady income, and you're both a U.S. resident and 18+ years old.
Does everyone get approved for Walmart credit card? ›
The Walmart Store Card often has more lenient requirements than the Walmart Rewards Mastercard. While a higher credit score can improve your chances, other factors like income and credit history also significantly influence the approval decision.
What is the best credit card for a 550 credit score? ›
One of the best credit cards for a 550 credit score is the OpenSky® Plus Secured Visa® Credit Card because it has a $0 annual fee and there's no credit check when you apply, so approval is almost guaranteed.
Is the Walmart Capital One card good anywhere? ›
The Capital One® Walmart Rewards™ Mastercard can be used for Walmart purchases and anywhere else that Mastercard is accepted. The Walmart Rewards™ Card can only be used for Walmart purchases (Walmart.com, in the Walmart App(s), in stores, and at Walmart and Murphy USA Gas Stations).
Is the Walmart one card worth it? ›
The bottom line: If you're a Walmart loyalist, you'll probably want this $0-annual-fee card in your wallet, but keep in mind that it gives you much greater value on virtual shopping than on the in-store kind. Earn unlimited rewards every day, everywhere on purchases in and out of Walmart.
Is having a Walmart credit card worth it? ›
Is the Walmart Rewards Mastercard worth it? Because the Walmart Rewards Mastercard has no annual fee and pays rewards on all purchases, there's little downside to signing up for one. There may, however, be another credit card with better rewards and features for your personal needs.
What is the hardest credit card to get from Capital One? ›
Capital One Venture X Rewards Credit Card
A rating of 5 is the best a card can receive. Why it's one of the hardest credit cards to get: The Capital One Venture X Rewards Credit Card is hard to get because it requires excellent credit for approval and charges an annual fee of $395. You get a lot in return, though.
