If you love to shop at Target, the RedCard is an essential card to have. Instead of earning points or miles, you get savings.
Card summary
The Target RedCard isn’t your traditional rewards credit card. With the card, you save 5% when you shop online or in-store at Target. Plus, there’s no annual fee. It’s a valuable card if you’re a frequent shopper at Target, and you pay your statement balance in full.
⭐⭐⭐ Rating: 3
Ratings and opinions are of More Money More Choices editors. It’s not influenced or endorsed by any card issuer or financial institution.
Rates and fees
Important information about the Target RedCard credit cards rates and fees are as follows:
- Annual fee: $0
- APR for purchases: 22.90%
- Intro APR: N/A
- Late payment: Up to $40.
- Returned payment: Up to $29.
Key benefits
The Target RedCard is a store credit card that has an unconventional rewards system. You don’t have to worry about earning and redeeming rewards.
Instead, you get a 5% discount upfront when you shop in-store or online at Target. The discount is applied at checkout.
When you shop online, you’ll receive free standard shipping on most items and free 2-day shipping on eligible items.
To maximize your discounts, sign up for Target’s email list because you’ll get a 10% coupon on your card anniversary. You’ll also have access to exclusive special items, gifts, and offers.
If you hold the RedCard, you’ll also get more time when it comes to returns. You’ll get an additional 30 days for returns and exchanges. This gives you more time to decide whether or not you like a product.
While you’re shopping at Target, grab a drink from Starbucks. The 5% discount also works at any in-store Starbucks location.
The discounts that you get with the RedCard are valuable, and there’s no annual fee for the card. If you’re a loyal Target shopper and pay your balance in full, it’s an excellent card to consider.
Drawbacks
The main drawback of the RedCard is the high APR. If you carry a balance, the credit card may not be for you because you’ll be paying a lot of interest.
Related: How do credit card balance transfers work?
Interest charges add up and can outweigh the 5% discount that it offers. To maximize the card, pay your balance in full.
Another drawback is that you can only use it at Target. If you use the card anywhere else, it’ll get decline.
Even if Target upgrades you to the Mastercard version, you won’t get much value. It’s better to use another credit card, such as one from Discover. You can earn 5% cashback without an annual fee.
Before applying for the RedCard, consider the types of transactions you do at Target. Not all purchases are included in the 5% discount.
For example, prescriptions, eye exams, Target gift cards, and gift wrapping services are a few purchases that don’t receive the discount. If you shop at Target for other items, you’ll find the card to be valuable.
Frequently asked questions
How do I make payments to my Target RedCard?
You can make payments online, via phone by calling 800-659-2396, mail to the address on your billing statement, or at a Target store.
How do I apply for the Target RedCard credit card?
You can apply for the Target RedCard online or at any Target store.
How do I get a credit limit increase on my Target RedCard?
To get a credit limit increase, request one by calling Target at 800-440-0680.
Conclusion
If you’re a loyal Target customer, the RedCard is a no-brainer because there’s no annual fee, and you’ll get a 5% discount at checkout when you shop in-store or online at Target.
However, the high APR means that it’s best if you pay your balance in full. If you’re looking for another card, try cashback credit cards as they’ll offer more flexibility.
Additional resources:
Featured image courtesy of Target.
About David Em
Founder
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.
