When you're eyeing that big-ticket item at Walmart, you've got choices beyond just swiping your regular debit card. Whether it's the 5% cash back from Walmart's credit card or the payment flexibility of buy now, pay later plans, each option impacts your wallet differently. The key is understanding which financing route actually puts more money back in your pocket.
Smart shoppers know that the right payment strategy can turn a necessary purchase into a money-saving opportunity. Before you buy, it's worth checking Groupon's latest Walmart discount codes for an extra nudge of savings. But once you're ready to checkout, here's how to choose between credit card rewards and BNPL flexibility.
Earn 5% Back with Walmart's Credit Card Rewards
Here's where things get interesting for reward hunters. The Capital One Walmart Rewards Mastercard delivers 5% cash back on Walmart.com purchases, including pickup and delivery orders[1]. That's a solid return that beats most general-purpose credit cards hands down.
For in-store shopping, you'll earn 2% back on purchases made in physical Walmart stores[2]. While that's not as generous as the online rate, it's still respectable for everyday grocery runs and household essentials.
However, there's a catch you should know about. Walmart ended its credit card partnership with Capital One in 2024, which means the future of these reward rates isn't guaranteed. If you're considering the credit card route, you'll want to stay updated on any program changes.
For more details on navigating Walmart's credit options, check out our comprehensive Walmart credit card guide that breaks down all your plastic options.
Split Payments with Walmart's BNPL Options
Buy now, pay later at Walmart comes primarily through Affirm, which lets you split purchases into manageable chunks over 3, 6, or 12 months[3]. The sweet spot for BNPL eligibility covers purchases between $150 and $2,000, making it perfect for electronics, home goods, auto parts, sports equipment, and toys.
What makes this particularly appealing is the payment flexibility. Instead of putting a $800 TV purchase on a credit card where you might pay high interest, you can break it into predictable monthly payments. Affirm shows you the total cost upfront, so there are no surprise fees lurking around the corner.
There's also a newer player in town. The fintech company One, which has Walmart's backing, recently introduced another BNPL option at Walmart stores. This creates more competition and potentially better terms for shoppers, though the specific details of this program are still developing.
Credit Cards vs BNPL at Walmart: When Each Wins
When Credit Cards Beat BNPL for Walmart Shopping
Credit cards shine when you're looking for immediate rewards and can pay off your balance quickly. That 5% back on online orders translates to real money – spend $500 on Walmart.com and you've earned $25 back. Do that consistently, and you're looking at meaningful annual savings.
Credit cards also help build your credit history when used responsibly. Every on-time payment strengthens your credit score, which can save you thousands on future loans for cars, homes, or other major purchases. BNPL plans don't always report positive payment history to credit bureaus, so you might miss out on this long-term benefit.
Another advantage? No purchase minimums for earning rewards. Whether you're buying a $10 item or a $1,000 appliance, you'll earn cash back on every transaction. BNPL options typically require that $150 minimum we mentioned earlier.
When BNPL Makes More Sense Than Credit Cards
BNPL can be the smarter choice when you're dealing with a large purchase and want to avoid potential high interest rates. Retail store credit cards often carry interest rates well above 20%, which can quickly erase any rewards you've earned if you carry a balance.
The payment structure of BNPL also helps with budgeting. You know exactly what you'll pay each month, making it easier to plan your finances around other expenses. This predictability can prevent the debt spiral that sometimes happens with credit cards when minimum payments barely cover interest charges.
Consumer protections have gotten stronger too. The Consumer Financial Protection Bureau now treats BNPL lenders like credit card providers, meaning you have the right to dispute charges and receive refunds for returned products[4]. This regulatory backing adds a layer of security to your BNPL transactions.
Top Tips to Manage Your Walmart Payments
The savviest shoppers don't pick just one payment method – they use the right tool for each situation. For smaller, everyday purchases where you can pay the balance immediately, the credit card's rewards make sense. For larger items where you need payment flexibility, BNPL keeps your budget on track.
Consider your credit score impact too. If you're building credit, responsible credit card use can help. If you're trying to avoid adding to your credit utilization ratio, BNPL might be the better temporary solution.
Timing matters as well. During major sales events, you might want to combine strategies. Use your credit card for smaller items to earn rewards, then switch to BNPL for that big-ticket purchase. Speaking of sales events, our Walmart Black Friday deals guide can help you maximize savings during peak shopping seasons.
Payment Method Comparison
| Feature | Walmart Credit Card | BNPL (Affirm) |
|---|---|---|
| Rewards | 5% online, 2% in-store | None |
| Purchase Range | No minimum | $150-$2,000 |
| Payment Terms | Flexible (with interest if carried) | Fixed 3, 6, or 12 months |
| Credit Building | Yes | Limited |
| Interest Risk | High if balance carried | Disclosed upfront |
FAQs
What does Walmart use for buy now, pay later?
Walmart primarily uses Affirm for BNPL financing, offering payment plans of 3, 6, or 12 months on eligible purchases between $150 and $2,000[3]. There's also a newer BNPL option through the Walmart-backed fintech company One, though details are still emerging.
What credit score do you need to get a Walmart store card?
While Walmart doesn't publish specific credit score requirements, most retail store cards typically require a fair to good credit score (around 580-670 or higher). Your approval odds improve significantly with scores above 650, though individual factors like income and debt-to-income ratio also matter.
Is buy now, pay later worse than credit card?
It depends on your situation. BNPL can be better for large purchases when you want predictable payments and rewards aren't a priority. Credit cards are typically better for building credit and earning rewards, but only if you can avoid carrying high-interest balances.
What is the difference between BNPL and credit card?
BNPL splits a specific purchase into fixed installments over a set period, while credit cards provide a revolving line of credit you can use repeatedly. Credit cards often offer rewards and help build credit history, while BNPL focuses on payment flexibility for individual purchases without ongoing credit access.
Decision-Making Checklist
- Can you pay off the full credit card balance within the billing cycle? If yes, go for credit card rewards
- Is your purchase over $150 and you need payment flexibility? Consider BNPL
- Are you trying to build or improve your credit score? Credit cards typically offer more credit-building benefits
- Do you want to earn rewards on smaller, everyday purchases? Credit cards have no minimum purchase requirements
- Are you concerned about high interest rates if you carry a balance? BNPL shows total costs upfront
- Is the purchase eligible for both options? Compare the 5% credit card reward against BNPL's payment flexibility for your budget
Start Saving on Your Next Walmart Purchase
Your payment choice at Walmart should align with your financial goals and spending habits. Whether you choose credit card rewards or BNPL flexibility, you're making a more informed decision than most shoppers. Before you check out at Walmart, take a moment to explore Groupon's latest Walmart discount codes. It's an easy way to stretch your budget without extra effort, regardless of which payment method you choose.
