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$25
Welcome offer
Up to 5%
Cash back
$0
Annual fee
24.65%
Purchase APR (variable)
| Product Name | Target REDcard™ Credit Card |
|---|---|
| Card type | Mastercard |
| Annual fee | $0 |
| Purchase APR | 24.65% variable |
| Balance transfer APR | N/A |
| Interest free period | Up to 25 days |
| Late payment fee | Up to $39 |
| Returned payment fee | Up to $28 |
Review by
Jeremy 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.
The Target REDcard™ Credit Card is a store card with a $0 annual fee. It comes with many Target-related perks, such as 30-day extended returns and free shipping. On your card anniversary, you get gifts, special items and a 10% discount.
But what makes this card really special is the 5% discount on purchases at Target stores and Target.com. The discount stacks with additional offers, such as Black Friday deals, which can save you a solid amount of money if you spend a lot at the store.
What’s more, you can get 5% discount on Specialty Gift cards for a variety of dining, entertainment or travel purchases.
Considering it has no annual fee, the Target REDcard™ Credit Card is definitely worth considering.
You can apply with a fair credit score of 580 or higher. But to get a high credit line, apply with an excellent credit score.
Get an automatic 5% discount on purchases at Target stores and online. This means you’ll save $100 for every $2,000 spent at Target stores.
Get an additional 30 days to make returns when you make a Target or Target.com purchase with your card.
Get free standard shipping on orders over $35 when you make online Target purchases with the card.
Get gifts, special items, offers and coupons for 10% off on your REDcard anniversary.
You won’t pay an annual fee to own the card.
Depending on your previous purchases and where you live, get early access to events, products and promotions, like Black Friday sales.
Earning 5% on purchases made at Target both in-store and online is one of the highest rewards rates you can find with a credit card. This discount is automatically applied when you make the purchase, so you don’t have to collect points to redeem toward your purchases.
Unfortunately, the 5% discount doesn’t apply to all purchases. This includes:
The card comes with relatively high APR on purchases of 24.65% variable. However, if you pay your entire balance by the due date, you won’t accrue interest.
Discounts can’t be used for gift cards, prepaid cards, prescriptions, eye exams, Target clinic services, credit card account payments, gift-wrapping or wireless protection programs required by mobile carriers.
Late payments come with fees of up to $39 and returned payments have fees of up to $28.
Satisfied customers love the 5% discount and the additional perks that come with this card. Those with complaints talked about poor customer service, hidden fees and lack of credit line increases even after years of using the card.
TD Bank USA, the issuer of the card, has been accredited by the Better Business Bureau and receives an A+ rating. Overall, you can avoid some potential issues by thoroughly reading and understanding your card agreement.
You can add authorized users to your Target REDcard™ Credit Card without cost, and they will be reported to the three major credit bureaus by TD Bank.
TD Bank doesn’t allow applying for a credit card with a cosigner.
| Target REDcard™ Credit Card | Amazon Prime Rewards Visa Signature Card | Walmart Rewards Mastercard | |
|---|---|---|---|
| Rewards rate | 5% discount on Target and Target.com purchases |
|
|
| Welcome offer | $$25 off when you make a qualifying purchase of $100 or more until November 11, 2019 | $$70 Amazon.com gift card upon credit card approval | 5% cash back when you use your card to pay at Walmart stores with Walmart Pay for the first 12 months |
| Minimum credit score requirement | 580 | Amazon Prime Rewards Visa Signature Card | 580 |
| Annual fee | $0 | $0but you need Amazon Prime membership | $0 |
| Target REDcard™ Credit Card | Amazon Prime Rewards Visa Signature Card | Walmart Rewards Mastercard | |
|---|---|---|---|
| Purchases made at the store | $5,000 | $5,000 | $5,000 |
| Welcome offer | $25 | $70 | N/A |
| Restaurants | $5,000 | $5,000 | $5,000 |
| Gas stations/Walmart gas stations | $5,000 | $5,000 | $5,000 |
| Drugstores | $1,000 | $1,000 | $1,000 |
| Travel | $2,000 | $2,000 | $2,000 |
| Everything else | $2,000 | $2,000 | $2,000 |
| Total spent | $20,000 | $20,000 | $20,000 |
| Total rewards | $275 | $560 | $520 |
Luckily, there’s a workaround with the Target REDcard™ that can beat any other store card with a 5% discount on dining, travel and entertainment purchases.
To get it, you need to purchase Target Specialty gift cards. Some of the gift cards include:
Note: Some restrictions apply, such as a maximum of $500 per gift card ($25 discount). Make sure you read the program rules.
Considering the Target REDcard™ Credit Card has no annual fee, it can be a valuable addition to your wallet for Target and Target.com purchases. Unfortunately, the card has little value outside of Target.
In this case, consider pairing the Target REDcard™ Credit Card with:
With this card, you can save up to $200 when you spend $4,000 at Target in a year — online or in the store. For eligible purchases over $35 you won’t pay shipping, which can save you even more when you shop online. Because of that, the only way to make the most of this card is to use it only for Target and Target.com purchases. Consider using other rewards credit cards on all other purchases.
In addition, you could:
Target frequently marks down select items both in stores and online. Each department usually gets marked down on a different day of the week, so keep your eyes peeled for discounts on big-ticket items Monday through Friday. Target’s Black Friday and Cyber Monday sales also promise some of the best deals of the year, with some sales kicking off as early as the first week in November.
Other times of year, snap up a coupon or browse the clearance section on Target’s website to score the lowest possible prices.
If you’re a loyal Target customer, this could be a great card for you. You’ll get a 5% discount on all purchases, extended return period, free shipping and other cool extras.
However, if you’re not sure whether this card is the right pick for your needs, check out other store cards or cashback cards to compare your options.
