A:

Through Synchrony Bank, Wal-Mart Stores, Inc. (NYSE: WMT) offers two credit cards: the Walmart MasterCard and the Walmart credit card. When used properly, both of these credit cards can help you build your credit history and credit score.

By reviewing the terms and conditions of the Walmart MasterCard and Walmart credit card, you can verify that your account activity is reported to the three credit bureaus (Equifax, Experian and TransUnion). Data, such as your account balance and list of late payments, will appear on your credit history, which the credit bureaus use to calculate your credit score.

5 Tips for Building Your Credit Score with a Walmart Credit Card

Whether you're just beginning your credit history or looking to strengthen it, the single most important thing you can do to improve your credit is to make monthly payments on time. Accounting for 35% of your FICO credit score, payment history is the biggest component of any credit score. By paying on time, you improve your payment history and avoid late payment fees.

If you miss a payment deadline, make that payment within 30 days. A missed payment isn't reported to any credit bureau unless it is made 30 days after the deadline. However, you'll still be responsible for applicable late payment fees (up to $35 with either Walmart card).

Keep a low balance on your credit card by paying off the entire balance every month. The amount owed is the second-largest component (30%) of your FICO credit score. By keeping a low credit utilization ratio, you're contributing positively to your credit score. Most credit issuers like to see a credit utilization ratio below 35%.

Don't close your credit card account. Your credit score improves as the length of your credit history grows. Even if you stop using your Walmart MasterCard or Walmart credit card, keep them open, especially if they're your first or only credit cards.

By enrolling in electronic statements with your Walmart credit card, you can also enroll to receive a monthly FICO credit score to keep track of your progress. Watching your score go up will keep you motivated to keep on building your credit.

RELATED FAQS
  1. Can a Best Buy credit card help you build credit?

    Learn about how using a Best Buy credit card responsibly can lead to a higher credit score and lower interest rates on mortgages ... Read Answer >>
  2. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ... Read Answer >>
Related Articles
  1. Personal Finance

    The Importance Of Your Credit Rating

    A great starting point for learning what a credit score is, how it is calculated and why it is so important.
  2. Personal Finance

    6 Benefits of Increasing Your Credit Limit

    If you can resist the urge to overspend, then raising your credit limit could benefit you in various ways.
  3. Personal Finance

    Take the Right Steps to Build Excellent Credit

    There are several things you can do to protect and improve your credit score.
  4. Retirement

    6 Methods to Maintain a Healthy Credit Score During Retirement

    Learn how to improve your credit score during retirement. Your credit score still matters in retirement, and these tips can give it a boost.
  5. Investing

    Millennials: Prevent a Bad Credit Score

    Here are five ways to help prevent getting a bad credit score that could affect future loan, credit card or mortgage approvals.
  6. Personal Finance

    6 Ways To Build Credit Without A Credit Card

    It's definitely possible – if a bit more complicated – to build a credit history without traditional credit cards. Just follow these steps.
  7. Personal Finance

    4 Unexpected Things That Lower Your Credit

    It's important to maintain a good credit score. Discover what could be lowering it without your knowledge.
  8. Personal Finance

    Should You Increase Your Credit Card Limit?

    Should you ask for a credit limit increase? The answer is yes, and there are several good reasons why.
  9. Managing Wealth

    5 Common Misconceptions About Your Credit Report

    Your credit report is one of the most important factors in determining your ability to get loans and new credit and has a major influence on your rates.
  10. Personal Finance

    Is Your Credit Score at 850? It Can Be!

    Use these tips to increase your credit score and your ability to get low interest rates on loans.
RELATED TERMS
  1. Credit Score

    A credit score is a number ranging from 300-850 that depicts ...
  2. Credit Mix

    The types of accounts that make up a consumer’s credit report. ...
  3. Balance Chasing

    The gradual lowering of a consumer’s credit limit by a credit ...
  4. Credit Card Balance

    The amount of charges, or lack thereof, owed to the credit card ...
  5. Thin File

    A limited credit history which can make it difficult to get credit ...
  6. Negative Information

    Data in a consumer’s credit report that lowers his or her credit ...
Trading Center