There are a number of different reasons to choose a Wal-Mart credit card, but they are most often, and designed for use as a card for purchasing of daily household goods. The Wal-Mart credit card is overseen by GE Money financing. In order to be approved for a Wal-Mart card, you must meet more stringent credit requirements than those applying for many other similar type store credit cards.
Those with excellent credit are almost guaranteed approval. There is no annual fee associated with this card, making it an attractive option as far as department store credit cards go. There is a high approval rate for those applying for the Wal-Mart credit card, despite the increased standards for approval. A tracking site on credit card approval found that, of their members who applied for a Wal-Mart card, 83% were approved, making your chances for approval – if you have fair or excellent credit – fairly good, indeed.
You must have a recently solid credit history, with no negative judgments on your credit history for at least 12-months. It is recommended, but not required you have a FICO score of 620 or higher. But since this isn’t a requirement, that doesn’t necessarily mean you will not be approved at a lower credit score. As with most cards, the better your credit score, the better interest rate you’ll receive. There is also a good chance that with a higher credit score, you will qualify for the higher credit limits.
The unstable economy is responsible for the increased credit requirements associated with department store credit cards meaning that those with fair credit might still be approved, but they are likely to be stuck with a small line of credit and a high interest rate, reducing the attractiveness of this card to many in the fair credit score range. Regardless, the credit limit given on Wal-Mart credit cards is generally fairly small when compared with other lines of credit.
Those with poor credit are unlikely to qualify for a traditional Wal-Mart credit card, but there is a credit score-boosting option available to you as well. Wal-Mart offers a secured, prepaid credit card that will allow you to make purchases on credit, thus working to improve your credit score, without running the risk of building up debt levels that you cannot support.
While department store credit cards might seem like a great idea for those looking to build credit, there are likely better, more affordable ways of going about it. Getting a Wal-Mart credit card requires a fair or excellent credit score, and for those with great credit, the terms are incredibly attractive. For those with lesser credit scores, other department store cards might be better options, or perhaps the secured prepaid card would be an option worth looking into, while trying to get your score to a level that will allow you to qualify for traditional credit cards.