Target Debit Card vs. Target Credit Card – Which is better?

*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on product links. For more information, please see our Advertiser Disclosure

Established over 50 years ago, Target introduced the concept of a mass market discount store that caters to the needs of customers. The mission was to provide a high quality shopping experience for consumers that could also strengthen their bonds within the community. This still remains the goal for Target team members as they have branched out for new ways to provide services to their loyal customers.

More recently, Target has done this by providing financing options and rewards programs through the REDcard program. This card comes two forms; one being a debit card and the other a credit card. Both of these cards have appealing features, but which one is better? Let’s take a look at the differences between these two cards, and you can decide which card is a better option to fit your needs.

Target Debit Card

The Target Debit Card works similarly to any other debit card, but it offers some generous discounts and perks for consumers who frequently shop at Target. Like regular debit cards, it is available to receive cash withdrawal at the register, but is limited to $40.00 at the point of sale. The benefits of this card are that there is no annual fee, 5% off all Target purchases, free shipping for purchases made online, and an additional 30 days allowed for returns. When you consider that there is no annual fee, the Target Debit Card seems like a no-brainer for people who regularly spend money at Target stores. More information is available in the Target Debit Card agreement.

Target Credit Card

Before we get too excited about the Target Debit Card, we still need to review the basic features of the Target Credit Card. Similar to the debit card option, this credit card features no annual fee, 5% off all Target purchases, free shipping for online purchases, and an additional 30 days allowed for returns. The one major difference between these two cards is that this particular card works on credit, meaning you have the option to pay the bill at a later date. The interest rate for this credit card is 22.90%, which is a higher that most cards, but relatively typical for a retail card. Be sure to read up on the full list of rates and fees before you decide if the Target Credit Card is the right card for you.

Key Differences

Target Debit Card Target Credit Card
No annual fee No annual fee
5% off everyday 5% off everyday
Free shipping at Target.com Free shipping at Target.com
Works with your checking account Charges 22.99% interest APR
No credit check required Credit check required

Non-Target Alternatives

There are many credit cards that will earn you rewards not only on Target purchases, but on everything else you buy as well. The Citi® Double Cash Card – 18 month BT offer, for example, will earn you up to 2% cash back for purchases anywhere and every day. Another option is the Chase Freedom® credit card that offers 0% intro APR on purchases and balance transfers for 15 months, as well as 5% back in certain rotating categories like gas, groceries, and dining, plus 1% back on all other purchases. The ongoing APR for the Chase Freedom in 14.24%-23.24% Variable.

The Choice is Yours

Now that you have all the facts laid out for you, it’s up to you to decide which would be the best fit for your need. If you find yourself to be a big fan of Target, and make most of your purchases there, then both of these cards would make a good choice. If you pay your balance off in full every month, then neither card will cost you anything to have. However, the Target Credit Card will help you build your credit score if you use it responsibly, while a debit card will not.

If the credit card is what interests you, then I would encourage you to do a credit card comparison before deciding on signing up for the Target Credit Card. There may be better offers available to you that you were unaware of; particularly if you’re looking for low interest credit cards or cards that will earn you rewards on all purchases.

* Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.

*The content in this article is accurate at the publishing date, and may be subject to changes per the card issuer.

Recommended Posts:

Having Trouble Choosing a Credit Card?

Sign up to receive a copy of our free ebook, The Ultimate Guide to Credit Cards. It will help you pick the perfect card!

Easily see your credit score in seconds.
Concierge icon Learn More
Concierge screenshot on mobile device Concierge screenshot on laptop device
CompareCards icon
Join Our Newsletter
Please enter a valid email address.
Thanks for signing up!
Ask Our Credit Experts Submit questions to our credit experts.
Thank you, we’ve received your question. Look for the response in your inbox in the next few days and subscribe to our newsletter.
Error sample
Most Popular Posts
CompareCards ad