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. How can you cancel your Walmart credit card?

    Learn how to close your Walmart credit card or Walmart MasterCard and read details about the process of closing those credit ... Read Answer >>
  2. 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 >>
Related Articles
  1. Personal Finance

    Take the Right Steps to Build Excellent Credit

    There are several things you can do to protect and improve your credit score.
  2. Personal Finance

    Should You Close Your Credit Card?

    Discover factors you need to consider before closing a credit card, including a hit to your credit score.
  3. Personal Finance

    3 Easy Ways To Improve Your Credit Score

    A better credit score can improve your financial future. How can you improve your score?
  4. Personal Finance

    Should you increase your credit card limit?

    Understand the fundamentals between credit scores, credit card limit, and your credit utilization rate. Find out why you should ask for your credit limit increase and the benefits that follow.
  5. 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.
  6. Personal Finance

    Debunking Credit Myths and Improving Your Score

    The best way to improve your credit score is to ignore the many credit myths that exist and use these tips.
  7. Personal Finance

    Why You Should Improve Your Credit and How to Do It

    With credit playing a big role in many financial decisions, it is important to maintain good credit.
  8. Personal Finance

    Combining Credit For A Happy Financial-Ever-After

    A couple's finances may not always be a match made in heaven. Find out when to say "I Do".
  9. Personal Finance

    Best Ways to Get Free Credit Scores in 2016

    You've probably seen spammy ads offering the opportunity to check your credit score for "free." Well, not all credit score services are created equal!
  10. Personal Finance

    Credit Score vs. Credit Report: Which Is Better?

    They sound alike, but can serve very different ends.
RELATED TERMS
  1. Credit Card Balance

    Credit card balance is the amount of charges, or lack thereof, ...
  2. Credit Card Debt

    Credit card debt is a type of unsecured liability which is incurred ...
  3. Credit Mix

    The different categories of debt within a consumer's credit history ...
  4. FICO Score

    A FICO score is a type of credit score that makes up a substantial ...
  5. Consumer Credit File

    A consumer credit file contains data about a consumer’s past ...
  6. Bad Credit

    A qualification of an individual's credit history that indicates ...
Trading Center