Can a Walmart MoneyCard be used as a credit card?

Can You Use a Walmart MoneyCard Like a Credit Card? The Short Answer is No.

The Walmart MoneyCard often gets mistaken for a credit card, perhaps due to its plastic form and widespread acceptance. However, it’s crucial to understand that it operates fundamentally differently. While it offers convenient purchasing power, a Walmart MoneyCard is essentially a prepaid debit card, not a credit card. This distinction carries significant implications for how you use it and its impact on your finances.

Instead of tapping into a line of credit, the Walmart MoneyCard draws directly from the funds you’ve pre-loaded onto the card. Think of it as a digital version of cash stored on a card. You can add money through direct deposit, cash loads at Walmart stores, or bank transfers. This pre-funding requirement is the key differentiator between the MoneyCard and a traditional credit card. With a credit card, you’re borrowing money to make purchases, which you then repay later, potentially with interest.

Because the Walmart MoneyCard doesn’t involve borrowing, it won’t affect your credit score in any way. Credit bureaus track your borrowing and repayment behavior to calculate your score. Since the MoneyCard doesn’t report any activity to these bureaus, using it responsibly or irresponsibly won’t build or harm your credit. This can be a disadvantage if you’re looking to establish or improve your credit history.

While the Walmart MoneyCard provides a convenient spending method and some useful features like online bill pay and direct deposit, it’s essential to understand its limitations compared to a credit card. It won’t help you build credit, and it doesn’t offer the same protections as a credit card, such as purchase protection or fraud liability limits. So, while you can use it in many places that accept credit cards, remember it functions as a debit card, drawing from your existing balance rather than extending a line of credit. Choose the card that best suits your financial needs and goals.