Target REDcard™ Credit Card review

How to apply for the Target REDcard™ Credit Card

1. Go to the provider's site and click Apply now.
2. Complete the application form with information such as your name, address and income.
3. 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

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:

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.

How does the Target REDcard™ Credit Card compare to other similar cards?

Target REDcard™ Credit Card

Not yet rated

Find out more
Minimum credit score 580
Annual fee $0
Purchase APR 22.9% variable
Balance transfer APR N/A
Rewards 5% discount at Target stores and Target online
Welcome offer N/A

Costco Anywhere Visa® Card by Citi

★★★★★

Finder Rating: 3.6 / 5

Go to site
Minimum credit score 740
Annual fee $0
Purchase APR 15.24% variable
Balance transfer APR 15.24% variable
Rewards 4% at gas stations on up to $7,000 annually (then 1%), 3% at restaurants and on travel, 2% at Costco and 1% on all other purchases
Welcome offer N/A

Sam’s Club® Mastercard®

★★★★★

Finder Rating: 3.8 / 5

Rates & fees

Go to site
Minimum credit score 670
Annual fee $0
Purchase APR 14.9% to 22.9% variable
Balance transfer APR 14.9% to 22.9% variable
Rewards Up to 5% at Sam's Club with Plus membership, 5% cash back on gas (on up to $6,000 annually, then 1%), 3% on dining and 1% on all other purchases
Welcome offer Get a $30 statement credit when you open a new account and make $30 in Sam's Club purchases within 30 days.

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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.

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.

Bottom 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

• Should I get the debit-card version of this product?
  The debit card might be valuable if you don’t want to deal with paying off your credit card bill. The card will draw funds directly from your linked bank account. You can also use it to get cash at checkout.
• Which number can I call if I have questions about my card?
  Call RedCard Guest Services at 800-424-6888.
• Can I add authorized users or cosigners to the Target REDcard™ Credit Card?
  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.
• Can I get prequalified for the Target REDcard™ Credit Card?
  You can’t get prequalified for the Target REDcard™ Credit Card. However, you can gauge your approval odds by considering your credit score.
• Do I have to redeem my Target REDcard™ Credit Card discounts?
  You don’t have to redeem your Target REDcard™ Credit Card discounts. The discounts are applied immediately as you check out with your credit card.
• Will I have online access to my RedCard account?
  Yes. Target has a RedCard portal that you can use to view details about your account.

Images: Target