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Target REDcard Review

Target REDcard Review

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Dec 06, 2018. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

Target offers the Target REDcard Credit Card, a $0 annual fee store card that can be used at Target stores and Target.com. The main draw of the Target REDcard Credit Card is the 5% discount on Target and Target.com purchases. This is a great perk compared with other store cards that offer lower discounts or inconsistent special offers.

Target customers can choose between the Target REDcard Debit Card or Target REDcard Credit Card. Both cards offer the same perks, but the Target REDcard Debit Card is linked to your existing checking account and provides the option of up to a $40 cash withdrawal at checkout.

Benefits of the Target REDcard Credit Card

5% discount on Target and Target.com purchases: Target REDcard Credit Card holders receive a fantastic 5% discount on Target and Target.com purchases, which includes the majority of items Target sells. This discount is automatically deducted when you check out — so no need to worry about redeeming rewards.

The 5% discount on Target and Target.com purchases also applies to select specialty gift cards (which is atypical) and at Starbucks located in Target stores (which is a better discount than the rewards provided by the Starbucks® Rewards Visa® Card*).

But you can’t earn that high rewards rate on everything.

5% discount on Target and Target.com purchases does NOT apply to the following:

  • Prescriptions, over-the-counter items located behind the pharmacy counter and clinic services at Target
  • Target Optical eye exams
  • Target gift cards and prepaid cards, Stockpile and Gift of College gift cards
  • Previous purchases
  • Certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen and Pret A Manger
  • Target credit account payments, Target REDcard Debit Card cash back and cash advances on the Target Mastercard
  • Gift wrap and shipping and handling charges on Target.com purchases
  • Wireless protection program purchases and deposits required by mobile carrier
  • Where otherwise prohibited by law

REDcard exclusive extras & early access: Target REDcard Credit Card holders can benefit from early access to special events, products and promotion, among other exclusive perks. Earlier this year, Target REDcard Credit Card holders received early access to select items from the highly anticipated Hunter for Target collaboration.

Free 2-day shipping: You can get free 2-day shipping on many items purchased at Target.com. Just note, some exclusions apply and you may not be able to receive small-ticket items in two days. This benefit it also available to non-REDcard holders, but you’d have to spend at least $35.

Extended returns: Use your Target REDcard Credit Card to purchase items at Target or Target.com and you can receive 30 additional days to return the purchase beyond the standard return policy. However, there are several exclusions: Target mobile purchases, purchases with a fixed return date and nonreturnable items.

Where this card falls short among store cards

Unlike many other store cards, the Target REDcard Credit Card does not come with special financing offers. You won’t be able to benefit from any interest-free periods with your card, but this may be a good thing since store cards offering special financing typically have pesky deferred interest charges.

Beware this card has a 24.65% variable APR. High APRs are standard among store cards, so it’s key to pay each bill on time and in full so you don’t incur high interest charges. You can conveniently set up autopay or payment reminders so you don’t miss a due date.

Tip: If you’ll need some time to pay off your balance, check out our picks for the best low-interest credit cards.

We recommend considering the American Express Cash Magnet® Card – $150 Welcome Offer for a low interest card that also offers an intro 0% on purchases for 15 months (after, 14.99%-25.99% Variable APR). This can provide you with the needed time to pay off any new purchases you make while also earning unlimited 1.5% cash back on your purchases.

The information related to the American Express Cash Magnet® Card – $150 Welcome Offer has been collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication. This offer and/or promotion may have since changed, expired, or is no longer available.

Pair your Target REDcard Credit Card with Cartwheel discounts

While Cartwheel is available for everyone to use, regardless if you have a Target REDcard Credit Card or not, it can help you save additional money beyond the 5% discount on Target and Target.com purchases.

Cartwheel is accessible through the Target app and online. The Target app is user-friendly and allows you to scan items while you shop in the store. It will then tell you if there are any active Cartwheel offers, and if not, it recommends similar items that are currently offering discounts. The discounts range from 5%-50% off the price of hundreds of items. When you use your Target REDcard Credit Card with Cartwheel, you can deduct an extra 5% off most purchases, potentially saving you up to 55% on select items.

Bottom line

If you’re a fan of Target and prefer to shop there for groceries, clothes, house supplies and more, you can benefit from becoming a Target REDcard Credit Card holder. The 5% discount on Target and Target.com purchases and free two-day shipping are great ways to save on everyday purchases and make your Target purchases less expensive.

Whether you choose the Target REDcard Debit Card or Target REDcard Credit Card depends on how responsible you are with making on-time payments. Since there’s a high 24.65% variable APR with the credit card version, that card is best suited if you know you can pay bills on time and in full each billing cycle. If you don’t have the best track record with payments, consider the Target REDcard Debit Card — but make sure you don’t overspend.

*The information related to the Starbucks® Rewards Visa® Card has been collected by CompareCards and has not been reviewed or provided by the issuer of this card.


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