Capital One® Walmart Rewards™ Credit Card Review: Is It Worth It?

Walmart has had its own store credit card for years, but recently, the retail giant decided to team up with Capital One for a new and improved version of its rewards card.

The Capital One® Walmart Rewards™ Mastercard® comes with an updated rewards rate and some benefits we don't often see with store cards, so it could be a valuable option if you like to shop at Walmart.

Diverse cash-back program: Cardholders receive 5% back on Walmart.com purchases, including grocery pickup and delivery, as well as in-store purchases made through the Walmart Pay app, although the app rate promo is only for the first 12 months (2% thereafter). Travel and restaurants earn 2% back. All other purchases earn at the base rate of 1% back.

No annual fee: Cardholders can harvest the full value of rewards earned by avoiding an annual fee.

Price protection: If you purchase a new item and find it for a lower price within 120 days, you may be reimbursed for the difference.

Extended warranty coverage: This automatically doubles the original manufacturer's warranty and store brand/purchased warranty when each is 24 months or less, for a total of up to 48 months.

Rental car insurance: With MasterRental Insurance, you're covered against damage to rental vehicles, including physical damage and theft.

Baggage delay insurance: If your baggage is delayed by four hours or longer on a covered trip, this coverage will reimburse you for emergency purchases of essential items.

Trip cancellation/interruption insurance: If your trip is canceled or interrupted because of a covered accident or illness, your Walmart credit card can reimburse you for the unused, non-refundable portion of your common carrier passenger fare.

No foreign transaction fee: Cardholders can use this card in other countries without paying extra fees on each swipe.

Limited 5% promo cash-back rate: The card would have more versatility if the 5% cash-back rate lasted beyond 12 months for in-store purchases.

No 0% intro APR: Cards intended for routine shopping are more valuable when offering a 0% intro APR on purchases.

Applicants with average credit -- a FICO® Score in the mid 600s or higher -- will have the best odds of securing approval.

Do you spend at least $100 at Walmart per month? If so, you should apply for this credit card.

However, you will have a decision to make after you've had the card for a year. At that point, the card will earn you only 5% back on Walmart.com purchases. That works if you can make the majority of your Walmart purchases through the website, but if not, you should look at other cash-back credit cards with more diverse bonus categories.

Although you can redeem your rewards for travel through Capital One, this isn't a travel card. If travel benefits are what you're after, you should check out travel rewards cards instead.