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Target REDcard™ Credit Card review
Last updated:
Get discounts and benefits for all purchases made at this big-box store.
- Get this card if you frequently shop at Target.
- Pick something else if you want cash back.
- Apply with a fair credit score of 580 or higher.
Up to 5%
Cash back
$0
Annual fee
22.9%
Purchase APR (variable)
580
Recommended credit score
Details
| Product Name | Target REDcard™ Credit Card |
|---|---|
| Card type | Mastercard |
| Annual fee | $0 |
| Purchase APR | 22.9% variable |
| Balance transfer APR | N/A |
| Interest free period | Up to 25 days |
| Late payment fee | Up to $40 |
| Returned payment fee | Up to $29 |
Expert review
Review by
Jeremy Cabral
jeremy.cabral@gmail.comJeremy is finder's Global Head of Publishing & Editorial. Jeremy has been with finder since the very beginning and is part of the founding team working closely with Fred and Frank to build finder.com into the comparison network it is today.
Expert review
The Target REDcard™ Credit Card is a $0-annual-fee store card that’s valid only at Target. Its key feature is a 5% discount on in-store and online Target purchases. This is among the highest cashback rates you’ll find among rewards cards, though you’ll find even higher rates with products such as the Blue Cash Preferred® Card from American Express.
In addition to the 5% discount, the Target REDcard™ Credit Card offers free two-day shipping at Target.com, an extended return and exchange window, additional discounts and access to exclusive products. On the downside, it has a high interest rate — and you don’t have the opportunity to receive a lower rate even if you have strong credit. That said, pay off your balance in full each month to avoid heavy interest.
How to apply for the Target REDcard™ Credit Card
- Go to the provider's site and click Apply now.
- Complete the application form with information such as your name, address and income.
- Review your details and submit your application.
What credit score do I need?
While many consumers have reported approval with scores of 620 and above, some consumers say they’ve been approved with scores in the high 500s.
As with all credit products, you have better odds of approval if you have a higher credit score. If you’re not sure your score qualifies you for the Target REDcard™ Credit Card, consider working on your credit for several months before applying.
Pros and cons
Pros
- No annual fee
- 5% discount on in-store and online Target purchases
- Free two-day shipping at Target.com
- For each purchase, get an additional 30 days to make returns and exchanges
- Special discounts and access to exclusive products
Cons
- No signup bonus
- High interest rate
- Can only be used at Target
Why you’ll like the Target REDcard™ Credit Card
If you’ve ever been approached by a Target staffer asking if you wanted to apply for a Target REDcard™ Credit Card, you might have said “no” out of habit. How good could a store card be, anyway?
But sometimes you just need a little time, outside of the store, to carefully evaluate whether the card is actually right for you. Here’s the verdict in a nutshell: The card offers an effective discount, and it’s a good pick if you’re a frequent Target shopper.
Get a 5% discount off a variety of Target purchases
Your shopping cart could include clothes, video games, books and appliances and more — get a 5% discount on all any of those eligible purchases.
This discount is applied at checkout, and makes the Target REDcard™ Credit Card a good choice for grocery shopping. Only a few cards, such as the Blue Cash Preferred® Card from American Express, offer better reward rates.
According to Target, other purchases are also good for 5% discounts, including:
- Clearance items
- Target Top Deals of the week
- In-store Starbucks locations
- Specialty gift cards
- Subscriptions for items such as diapers, toilet paper and personal care items
- Target Drive Up orders
- Same-day delivery orders through Shipt when you order on Target.com
Pro tip: If you want to squeeze out the highest possible discounts, download the Target app. You can combine the Target REDcard™ Credit Card‘s 5% savings with the 5% to 50% discounts you can find through Target Circle.
Exclusions to this card’s discount
These types of purchases aren’t eligible for the 5% discount:
- Certain medical purchases, such as prescriptions and clinic services, over-the-counter items you buy at the pharmacy counter, and eye exams and protection plans from Target Optical.
- Target prepaid cards and gift cards, lottery gift cards and Gift of College cards.
- Purchases you’ve already made.
- Some restaurants in Target stores, including but not limited to Pret A Manger and D’Amico & Sons Italian Kitchen.
- Certain financial transactions such as payments on your credit card account or, if you’re upgraded, cash advances with the Target Mastercard®.
- Shipt membership fees.
- Alcohol purchases in Indiana.
- Gift wrap and shipping and handling fees when you buy from Target.com.
- Mobile carrier deposits and wireless protection programs.
- Purchases where the discount doesn’t apply because it’s prohibited by law.
Get free two-day shipping on eligible Target.com purchases
To see whether this card’s free two-day shipping is right for you, consider Target’s normal options for standard and two-day shipping.
Standard shipping is three to five business days, and two-day shipping is always free if you spend $35 or more. The minimum shipping charge is $5.99. When you use your Target REDcard™ Credit Card, you get free two-day shipping at Target.com, regardless of order size. That means the card’s shipping benefit is most useful if you often make small purchases on the retailer’s website.
Still, shipping rates offered by the Target REDcard™ Credit Card compare favorably to its rival, the Amazon Rewards Visa Signature Card. The latter doesn’t offer free shipping.
Some products on Target.com might be designated with “Only ships with $25 orders.” That means you can buy those items only if your cart subtotal is at least $25. In this case, you won’t receive two-day shipping if you don’t meet the minimum — even if you have the Target REDcard™ Credit Card.
Get an extended window for returns and exchanges
Target already has a lenient return policy: You can return most new, unopened products within 90 days of purchase. If you like having even more time for returns, however, the Target REDcard™ Credit Card offers an additional 30 days for returns and exchanges.
At this time, Target lists only two exclusions for extended returns and exchanges: non-returnable items and Target Optical purchases
Get regular discounts and special-access sales
According to Target, carrying a Target REDcard™ Credit Card affords you access to “exclusive extras, including special items, gifts and offers.” These benefits change throughout the year.
Here are a few examples of what you might find:
- Anniversary benefit. Target sends you a special offer each year after your card anniversary if you’ve signed up to receive marketing emails. An example is a 10% off coupon.
- Periodic discounts. Get a $10 discount off in-store and online purchases of at least $100.
- Hotels.com savings. Until December 31, 2020, save 10% on hotel bookings through Hotels.com.
- Access to special items. At the time of this writing, Target is promoting a Batman Funko POP figurine that’s available only to Target REDcard™ Credit Card members.
Consider the drawbacks before applying for the Target REDcard™ Credit Card
The biggest weaknesses of the Target REDcard™ Credit Card are two-fold. For one, it’s not that useful if you don’t shop at Target much. And this is one card you don’t want to carry a balance on, as you’ll get dinged heavily on interest.
Use this card only at Target and nowhere else
The Target REDcard™ Credit Card is closed-loop, meaning it’s only valid at Target or Target.com. This is different from a card such as the Walmart Rewards™ Mastercard®, that can be used anywhere that accepts Mastercards. Accordingly, Target REDcard™ Credit Card might take up unnecessary space in your wallet if you rarely shop at Target.
Along the same lines, the discounts you’ll receive are valid only at Target. Saving 5% on a rare Target trip might not be worth the hassle of maintaining an additional credit product. Even if you do shop at Target regularly, you might wish the card offered discounts at other merchants.
Watch out for the high interest rate
Credit card issuers often have a range of APRs that depends on your creditworthiness. However, the Target REDcard™ Credit Card has just one purchase APR: 22.9% variable.
While this rate is standard for a store card, it’s significantly higher than the average credit card APR of around 17%. Carrying a balance with a rewards card means you’ll effectively erase the rewards you earn when you pay interest. In the case of the Target REDcard™ Credit Card, collecting interest could easily mean you essentially don’t save anything with your card’s 5% discount.
You won’t get a signup bonus
Store credit cards aren’t known for their signup bonuses. However, some cards will give you a goodie as you open your card. For example, the Kohl's Credit Card gives you an extra 35% off your first Kohl’s Charge purchase. And the Amazon Rewards Visa Signature Card — a close competitor — offers a $50 Amazon.com gift card upon approval. Unfortunately, there’s no signup bonus with the Target REDcard™ Credit Card.
Target REDcard™ Credit Card reviews and complaints
Many customers say they enjoy having the card’s 5% discount. Cardholders rightfully point out that the card has a high purchase APR. They advise others to pay off their balances in full each month to avoid interest.
If you don’t want a credit card, consider taking up a common suggestion of applying for the Target REDcard™ Credit Card instead. You’ll get many of the same benefits as you would with the Target REDcard™ Credit Card, along with the ability to withdraw up to $40 in cash at checkout.
Authorized users or cosigners
You can add authorized users to your Target REDcard™ Credit Card account by calling your card’s support phone number. TD Bank, the card issuer, doesn’t allow cosigners.
How does the Target REDcard™ Credit Card compare to other similar cards?
Compare signup bonuses from big-box retailer store cards
| Card | Signup bonus value |
|---|---|
| Target REDcard™ Credit Card | None |
| Walmart Rewards™ Mastercard® | $130 |
| Amazon Prime Rewards Visa Signature Card | $100 |
| Amazon Rewards Visa Signature Card | $50 |
| Sam's Club® Credit Card | $45 |
| Costco Anywhere Visa® Card by Citi | None |
Compare reward and discount value for $5,000 in annual spending exclusively at the retailer
| Card | Annual rewards and discounts |
|---|---|
| Target REDcard™ Credit Card | $250 |
| Amazon Rewards Visa Signature Card | $150 |
| Amazon Prime Rewards Visa Signature Card | $131 |
| Costco Anywhere Visa® Card by Citi | $90 |
| Sam's Club® Credit Card | $50 |
Compare similar store credit cards
Consider other cards if …
You don’t shop much at Target — its competitors have their own cards. Get a card that offers accelerated rewards for the categories in which you spend the most.
- Amazon Rewards Visa Signature Card. If you prefer to shop at Amazon or Whole Foods, this is a good store-card alternative.
- Walmart Rewards™ Mastercard® The card of choice if you like shopping at Walmart. It’s true that you get ongoing 5% back only at Walmart.com, through the Walmart app, and for Grocery Pickup and Delivery. But you’ll earn 5% in stores through Walmart Pay for 12 months after account opening.
- Blue Cash Preferred® Card from American Express. If a grocery card is what you’re after, consider this product. It offers top-notch cash back in this category, as well as accelerated rewards in other categories such as US gas stations.
Cards to pair with the Target REDcard™ Credit Card
The Target REDcard™ Credit Card is most useful if you’re a frequent shopper at Target. What’s more, you can get a variety of items at the retailer, so you can conceivably get a 5% discount on a large portion of your overall spending.
However, the Target REDcard™ Credit Card isn’t valid outside of Target. For purchases outside of the retailer, you’ll want to use a different rewards card.
Here are a few cards to consider:
- Citi® Double Cash Card. Earn 1% cash back on all purchases and another 1% as you pay them off. If you consistently pay off your purchases, you’ll find solid rewards on all of your spending.
- Capital One® Savor® Cash Rewards Credit Card. This card’s top rewards rate is 4% cash back on dining and entertainment — two categories for which the Target REDcard™ Credit Card isn’t optimal.
- Wells Fargo Propel American Express® Card. This card offers excellent rewards in categories the Target REDcard™ Credit Card is weak in, such as dining, gas stations and eligible travel.
How to make the most out of your card
If you’re approved, here’s what to do to maximize your Target REDcard™ Credit Card:
-
Shop at Target frequently.
Target is a big-box store with a variety of items, and you could do much of your shopping there — including, perhaps, your grocery runs. The card’s 5% discount can lead to significant savings. -
Download the Target app.
You can combine your card’s discounts with savings you’ll find through the Target app. While the app’s discounts may not be as consistent, they’re often steeper than the savings you’ll get with your card. -
Avoid interest.
Unfortunately, you’ll be saddled with a high interest rate even if you have strong credit. This makes your strategy easy: Pay off your credit card bill in full each month. This way, you’ll get the most out of your card’s discounts.
How to upgrade your card
The Target Mastercard® is another version of this card. While it has essentially the same features, it has an important difference of being valid at merchants outside of Target.You can’t apply for the Mastercard version. However, you may be upgraded to it after you become a cardholder of the Target REDcard™ Credit Card.
Back to topBottom line
The Target REDcard™ Credit Card is an excellent choice if you’re a frequent shopper at Target, as you’ll receive a strong 5% discount on most purchases. If you rarely shop at the retailer, consider another rewards card that’s valid at a variety of merchants.
Frequently asked questions
Images: Target