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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
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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? ›
The Capital One Walmart Rewards® Mastercard®* is an ideal choice for those who do a significant amount of shopping at Walmart. Although the superstore is already known for its everyday low prices, using the Walmart credit card to pay for your purchases will snag you even more savings.
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®.
Is the Walmart store card the same as the Capital One Walmart card? ›
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).
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? ›
Often, you have to ask for a higher credit limit, and then the creditor will evaluate your credit, income and other financial details to decide whether to increase your credit limit. But with some Capital One cards, you have a chance to get a credit line increase in as few as six months with on-time payments.
How to get Capital One to automatically increase credit limit? ›
Yes, credit limit increases can happen automatically if your information is kept up to date, like employment status and total annual income. 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.
Does Capital One ever raise your credit limit? ›
The following list are examples of factors we consider when determining your request for a credit limit increase: If you make on-time payments (with all creditors) If you make larger monthly payments that pay down your balance. Changes in your employment status, total annual income, or credit score.
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 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.
What's the lowest credit score for a Walmart credit card? ›
Keep in mind that the Walmart Credit Card (see Rates & Fees) requires fair credit, which means you need a 640+ credit score for high approval odds.
Why did Walmart sue Capital One? ›
Capital One became the sole issuer of Walmart's private label and co-branded credit cards in 2018, but the retailer sued last year seeking to end their alliance, saying the bank failed to deliver replacement cards to customers within five days and promptly post transaction and payment information to accounts.
What bank is the Capital One Walmart card? ›
No, the Walmart Credit Card is not issued by Synchrony Bank. Both of Walmart's credit cards, the Capital One Walmart Rewards® Mastercard® and the Walmart® Store Card, are issued by Capital One.
Are there two Capital One Walmart cards? ›
The two different Walmart credit cards are the Capital One Walmart Rewards® Mastercard® and the Walmart® Store Card, both of which offer 2% - 5% back on Walmart purchases and have no annual fee. The Walmart Credit Card works anywhere Mastercard is accepted, whereas the Walmart® Store Card is more limited.
Is Capital One good for your credit? ›
If you're working to build your credit, the Capital One Platinum Secured Credit Card is one of the better choices available. Its flexible security deposit requirements, low fees and upgrade potential make it a solid starter card.
Is Capital One credit card any good? ›
But Capital One's cards are more than hype — they include generous rewards cards as well as excellent products for business owners, students and those with average or poor credit.
Does Walmart Capital One do a hard pull? ›
If you are preapproved and go ahead with your application, there will be a hard credit pull, however.
