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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 May 20, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

If you regularly shop at Target or Target.com, then you know how easy it is to spend a large amount on toiletries, cleaning supplies, household decor, clothing and groceries there. To help offset those costs, you may want to consider the Target RedCard Credit Card.

The $0 annual fee card offers a 5% discount on Target and Target.com purchases. Plus, cardholders have access to exclusive perks, such as free two-day shipping and extended returns.

We break down the pros and cons of the Target RedCard Credit Card, and show how it compares to the Discover it® Cash Back, which offers cash back on every purchase, as well as an introductory APR on purchases for more than a year.

Target RedCard Credit Card pros

5% discount on Target and Target.com purchases. Target RedCard Credit Card holders receive a 5% discount on Target and Target.com purchases. This discount is automatically deducted when you check out — so there’s no need to worry about redeeming rewards. The discount also applies to clearance items, purchases at in-store Starbucks locations, subscription deliveries, specialty gift cards and same-day delivery orders through Shipt.

Annual fee. The Target RedCard Credit Card comes with a $0 annual fee.

Free two-day shipping. When you use your Target RedCard Credit Card to shop at Target.com, you will receive free two-day shipping on most items. All other Target.com purchases will receive free standard shipping.

Extended returns. Target RedCard Credit Card holders receive 30 additional days to return a purchase beyond the standard return policy. Note, this does not apply to Target Optical(™) purchases or non-returnable items.

RedCard Anniversary bonus. After your account anniversary opening date, cardholders receive an exclusive offer. For example, through Dec. 31, 2020, cardholders can receive 10% savings on hotels through Hotels.com.

Pair it with Target Circle. Target RedCard Credit Card and Target RedCard Debit Card holders are automatically enrolled in Target Circle, the company’s new loyalty program. You can take advantage of special discounts through Target Circle while still receiving a 5% discount through the Target RedCard Credit Card. For example, during May 2020, Target Circle members can redeem 10% off Tide laundry detergent as well as 5% off Hefty slider bags.

Check out the current Target Circle offers here.

Target RedCard Credit Card cons

Can only be used at Target. Unlike traditional credit cards, which allow you to use your card anywhere, you can only use the Target RedCard Credit Card at Target stores and Target.com.

High purchase APR. We recommend that you pay your balance in full each month. Otherwise, you will be subject to a high APR of 22.90% variable on purchases. That said, store credit cards typically charge higher interest rates than traditional credit cards.

If you want to receive 5% off at Target and Target.com without risking racking up high-interest debt, you may want to consider the Target RedCard Debit Card instead. The debit card offers the same perks as the Target RedCard Credit Card, but since it’s linked to an existing checking account, funds will automatically be withdrawn when you make a purchase, instead of applied toward a balance. The debit card also allows you to withdraw up to $40 at checkout.

No 0% intro APR on purchases. If you want to finance a large purchase, such as a TV or a furniture item, and pay it off over time, you may be better off with a card that doesn’t charge interest for an extended period of time, such as the Discover it® Cash Back (details below).

Discount doesn’t apply to all Target purchases. The 5% discount doesn’t apply to prescriptions, Target Optical eye exams and protection plans, Target gift cards and prepaid cards, certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen, Shipt membership fees, alcohol purchases in Indiana, gift wrap and shipping and handling charges on Target.com purchases or wireless protection program purchases.

Compare it to the Discover it® Cash Back card

  • 0% for 14 months on purchases and Balance Transfers, then 11.99% - 22.99% Variable.

  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. *

  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically*

Highlights
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • See Rates & Fees

See additional details for Discover it® Cash Back

More Info

If you want the ability to earn cash back on every purchase you make – no matter where you shop – you may want to consider the Discover it® Cash Back card.

The $0 annual fee card offers the following rewards rate: Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.

Cash back can be redeemed for gift cards, charitable donations, credit to your Discover account, electronic deposit into any account you designate or merchandise.

Target RedCard Credit Card vs. Discover it® Cash Back

 Target RedCard Credit CardDiscover it® Cash Back
Annual fee$0$0
Sign-up bonusN/AFor new card members only, Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards rate5% discount on Target and Target.com purchasesEarn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Intro APR on purchasesN/A0% for 14 months
APR on purchases22.90% variable11.99% - 22.99% variable

The 2020 Discover cashback calendar includes a variety of merchants, including gas stations, Uber, restaurants and PayPal. In fact, during the fourth quarter of 2020, Discover will offer the bonus rate at Target.com, Walmart.com and Amazon.com.

If you max out $1,500 spend cap each quarter, you can earn $300 cash back at the end of the year. Once you factor in the Discover cashback match bonus, that amount jumps to $600.

Additionally, the Discover it® Cash Back card offers an intro APR of 0% for 14 months on purchases, then a regular APR of 11.99% - 22.99% Variable. By contrast, if you plan to carry a balance on your Target RedCard Credit Card, you will be subject to interest charges at a rate of 22.90% variable APR.

Read our Discover it® Cash Back review.

Which credit card is best for me?

If you regularly shop at Target or Target.com, the Target RedCard Credit Card could be a great fit. In addition to saving on most Target purchases, cardholders receive free two-day shipping and an extra 30 days for returns and exchanges.

But if you want more flexibility in where you can earn rewards, the Discover it® Cash Back may be a better fit, since it offers cash back on every purchase. Just keep in mind that, while the card includes Target.com as a bonus category during the fourth quarter of 2020, you can only earn the elevated rate for online purchases, and not in store.

 


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