Should You Apply for the Walmart OnePay CashRewards Card?

Walmart sells virtually every household item you could ever need, from groceries, electronics and cosmetics to party supplies, auto parts and even gas in some cases. The OnePay CashRewards Card aims to reward you more for those purchases.

The $0-annual-fee card, issued by Synchrony Bank, earns:

• 5% cash back on purchases at Walmart and Walmart.com for Walmart+ members. 

• 3% back on purchases at Walmart and Walmart.com for non-members. 

• 1.5% back on all other purchases. 

Those are good rates for a store-branded card. But is it right for you? Here's how to figure that out.

Why you might want the OnePay CashRewards Card

1. You turn to Walmart for most household items

Store cards are the most rewarding when much of your budget is dedicated to that particular retailer. If Walmart is your source for both regular purchases (food, clothing, toiletries) and bigger buys (televisions, patio furniture, above-ground swimming pools), the OnePay CashRewards Card becomes a compelling option. This is especially true for Walmart loyalists who might already have a membership to the retailer. Those who have a Walmart+ membership earn the highest rate with the card, 5x back, on Walmart spending. A Walmart+ membership costs $98, or $12.95 if you choose to pay monthly.

» MORE: NerdWallet's best store credit cards

2. You seek flexibile rewards

Walmart's OnePay CashRewards Card offers rewards as OnePay "points" that you can redeem for cash back at a value of a penny each. As such, it's considered a cash-back card. You're not earning "reward certificates" or "store credit," as you might with some other co-branded store cards.

You can take your cash back as a statement credit or a deposit into a OnePay Cash account, and you can then use that cash back on anything you like — not just toward more purchases at Walmart.

Another plus is that points don't expire, which isn't always the case with store cards. You do, however, need a minimum of 25 OnePay points to start redeeming.

3. You want no annual fee

You’ll need to pay for a Walmart+ membership to earn the card’s coveted 5% back at Walmart, and that could be considered a de facto annual fee.

But keep in mind that you can still earn an uncapped 3% back for all Walmart purchases even without a membership — for a $0 annual fee.

» MORE: NerdWallet's best credit cards to use at Walmart

Why you might pass on the OnePay CashRewards Card

1. You’re loyal to a different 'everything store'

Inertia is strong, and if you habitually turn to other retailers and are happy with them, the OnePay CashRewards Card may not motivate you enough to change how you shop. That’s especially true if you live closer to a Target or routinely make small Amazon purchases below the $35 free shipping threshold set by Walmart.com. (For what it's worth, the OnePay CashRewards Card doesn't get you free shipping, or really much of anything in the way of store perks.)

The ideal retail card is one that meets you where you already shop.

2. You want a higher rewards rate on specific spending

Earning 1.5% back on purchases outside of Walmart certainly elevates this card above store cards that reward you only for shopping at that specific retailer. But there are cards that earn elevated rewards in specific categories like dining or travel, for example, that can better match your spending habits.

For example, the Chase Sapphire Preferred® Card earns 5 points per $1 spent on all travel booked through Chase; 3 points per $1 spent on dining (including eligible delivery services and takeout), online grocery purchases (not including Target, Walmart and wholesale clubs), and select streaming services; 2 points per $1 spent on travel not booked through Chase; and 1 point per $1 spent on other purchases. There’s a $95 annual fee, but that's cheaper than a Walmart+ membership. And it also offers a generous welcome bonus that can help offset that cost: Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. Plus, points can be worth more when redeemed for travel through Chase, and you'll get access to more than a dozen travel transfer partners to which you can move your points.

Alternately, if you're not interested in keeping track of bonus categories, consider a general cash-back credit card that offers the same high rewards rate on everything you buy. For instance, the $0-annual-fee Wells Fargo Active Cash® Card earns 2% cash back on all eligible purchases. You can redeem that cash back as a statement credit; as a withdrawal from Wells Fargo ATMs in $20 increments using a Wells Fargo ATM or debit card; as a direct deposit into a Wells Fargo checking or savings account; or asa mailed paper check.

3. You want a general card not tied to a brand