The Capital One Walmart Rewards Mastercard isn't your typical store credit card, and it's now offering a $50 sign-up bonus for a very short time

This page includes information about the Discover it® Cash Back and Discover it® Student Cash Back, which are currently not available on Business Insider and may be out of date.

• Store credit cards are usually not a good deal. Most don't come with a welcome bonus or strong rewards earning, and they're known to charge very high interest rates.
• The Capital One® Walmart Rewards™ Mastercard® could be worth considering if you like a no-annual-fee card and spend a lot on Walmart purchases, dining, and travel, because it earns bonus cash back in these categories.
• Until December 1 (December 26 if you apply in-store), the Capital One® Walmart Rewards™ Mastercard® has a sign-up bonus of $50 cash back after you spend $300 on purchases in the first three months of account opening. Usually, the card doesn't offer a welcome bonus.
• Unless most of your spending is at Walmart, you'll likely do better with a rewards credit card that comes with a bigger sign-up bonus, better rewards earning, or benefits like an introductory 0% APR.
• Read Business Insider's guide to the best cash-back credit cards.

It can be tempting to apply for a store credit card, especially if it offers rewards at a chain you like to shop with. We've all encountered that sales pitch at the cash register to sign up and receive a big discount on our purchase, but in many cases, the benefits of opening a store card are short-lived.

You could also end up getting stung by exorbitant fees and interest if you end up carrying a balance, because store cards are notorious for charging extremely high rates. This is one of the reasons why we normally recommend avoiding store credit cards— with a handful of exceptions.

The Capital One® Walmart Rewards™ Mastercard® doesn't quite fit the store credit card mold. You can use it anywhere Mastercard is accepted, and it earns strong rewards in certain categories — including 5% cash back at Walmart.com with no cap.

Until December 1 (December 26 if you apply in-store), the Capital One® Walmart Rewards™ Mastercard® is offering a limited-time sign-up bonus of $50 cash back after you spend $300 on purchases in the first three months of account opening. 

Walmart credit card sign-up bonus

Earning $50 cash back from the no-annual-fee Capital One® Walmart Rewards™ Mastercard® after spending $300 on purchases in the first three months isn't terribly exciting, especially compared to some of the massive welcome bonuses we see on the best rewards credit cards. But keep in mind — this card normally doesn't offer a sign-up bonus at all. 

As part of the introductory offer, you'll also earn 5% back on in-person purchases at Walmart stores for the first 12 months, but only when you use your card through the Walmart Pay app.

The Capital One® Walmart Rewards™ Mastercard® earns bonus cash back in several categories, and if you're a frequent Walmart shopper, you could actually do fairly well with the card. You'll earn:

• 5% cash back at Walmart.com, including pickup and delivery
• 2% cash back at Walmart stores in the US and Puerto Rico, and at Walmart and Murphy USA gas stations (outside of the 5% introductory offer with Walmart Pay in the first 12 months)
• 2% cash back on gift cards purchased through Walmart (online, through the Walmart app,  in-store, or with Walmart Pay)
• 2% cash back at restaurants and on travel purchases 
• 1% cash back on everything else

With the Capital One® Walmart Rewards™ Mastercard®, rewards are issued in the form of points you can redeem for cash back, statement credits, gift cards, and travel. Your points won't expire as long as your account is open and there are no limits to what you can earn. On the downside, the card doesn't offer any notable benefits other than not adding foreign transaction fees. It doesn't come with an introductory APR either — you'll pay an APR of 17.99%, 23.24% or 26.99%, based on your creditworthiness.

However, there's a big caveat if you decide to apply. If Capital One isn't able to approve you for the Capital One® Walmart Rewards™ Mastercard® based on your credit score and other factors, it will automatically consider you for the lesser Walmart Rewards Card, which can only be used at Walmart and doesn't offer as generous an earning structure.

This is another reason you should look at all of your credit card options before settling on the Capital One® Walmart Rewards™ Mastercard®.

Alternatives to the Capital One Walmart Rewards card

Unless the vast majority of your spending is at Walmart, one of the best no-annual-fee credit cards is likely a better choice than the Capital One® Walmart Rewards™ Mastercard®. Most of these cards come with a substantial welcome bonus or offer ongoing rewards in wider categories, and several include benefits like purchase protection or a 0% introductory APR.

Some of these cards even earn elevated rewards on Walmart purchases as part of their quarterly rotating bonus category promotions. For example, the Discover it® Cash Back and Discover it® Student Cash Back earn 5% back on up to $1,500 in combined spending (then 1%) at Walmart.com, Target.com, and Amazon in the fourth quarter of 2020 when you activate the bonus. With these cards, Discover will also match the cash back you've earned after the first 12 months.

Here are a few other cash-back cards with no annual fee to compare:

Chase Freedom Flex

From October 1 to December 31, the Chase Freedom Flex℠ earns 5% cash back (5x Chase Ultimate Rewards points) on Walmart and PayPal purchases up to a maximum of $1,500 in combined spending (then 1%). Walmart has appeared on the Chase Freedom 5x rotating bonus category calendar in the past, in addition to popular categories like Amazon, restaurants, gas stations, and grocery stores. 

The Chase Freedom Flex℠ also earns 5% cash back (5x points) on travel purchased through the Chase travel portal, 3% cash back (3x points) on dining and drugstore purchases, and 1% back (1x points) on everything else. It currently comes with a compelling $200 Bonus after you spend $500 on purchases in your first 3 months from account opening— plus you'll earn 5% cash back (5x points) on grocery store purchases, excluding Target and Walmart, on up to $12,000 in combined spending your first year.

The Chase Freedom Flex℠ is a good choice if you need to carry a balance — it offers an introductory APR on purchases of 0% for the first 15 billing cycles, then a 14.99% – 23.74% APR after that. You'll also get excellent benefits that don't always come with no-annual-fee cards, including cell phone protection, purchase protection, extended warranty, trip cancellation and interruption insurance, and car rental insurance (secondary in the US, primary elsewhere). 

Citi Double Cash

If you don't want to worry about bonus categories but like earning solid cash back on every purchase, the Citi® Double Cash Card is hard to beat. You'll earn a total of 2% cash back (1% when you buy and 1% when you pay) on all purchases with no limit, and you'll have the flexibilty to convert your cash back to Citi ThankYou points for more redemption options, including travel.

The Citi® Double Cash Card doesn't currently offer a welcome bonus, but it does have a generous introductory 0% APR on balance transfers for the first 18 months (then a 13.99% - 23.99% (Variable) APR). This is handy if you're looking to consolidate high-interest debt, as long as you can pay off your balance before the promotional APR period ends.

Amex Blue Cash Everyday

For a limited time, the Blue Cash Everyday® Card from American Express has an increased welcome offer, and it's perfect for those who do a lot of shopping at Amazon. New applicants can currently get $200 statement credit after you spend $1,000 in the first 3 months from account opening. 

You'll earn 3% back on the first $6,000 spent at US supermarkets each calendar year (then 1% back), 2% back at US gas stations and select US department stores, and 1% back on everything else. The card also comes with secondary car rental insurance, access to exclusive American Express ticket presales and cardholder-only events, and a Global Assist 24/7 hotline for help when you're on the road.

The Blue Cash Everyday® Card from American Express can also help you save money if you need to pay for new purchases over time. It offers an introductory 0% APR rate on purchases in the first 15 months of account opening, then a 13.99% to 23.99% variable APR after that.

Jasmin Baron is an associate editor at Personal Finance Insider, where she helps readers maximize rewards and find the best credit cards to fit their lifestyles. Before joining Business Insider, she was a senior editor at The Points Guy and Million Mile Secrets, covering credit cards, loyalty programs, and all things travel.

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