Target REDcard Credit Card: Must-read Review

Have you ever walked into a Target to buy one item and ended up walking out with two full bags instead? You’re not alone. Target has that effect on nearly everyone who shops there, which is why many people benefit from using the Target REDcard credit card.

It can help you save a little money on your next Target run, and it comes with some other convenient benefits as well. But is this card right for you? Let’s find out.

Here’s everything you need to know about the Target REDcard.

Target REDcard overview

The Target REDcard is a card offered by Target to its customers. It comes in the form of a debit card or credit card. Like many store credit cards, this card can only be used at Target stores (including Target.com).

REDcard Features and benefits

Here’s what the card can offer you:

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • Save 5% on Target purchases in-store and online
  • Get free standard shipping on most items you buy from Target.com (when shipping to any of the 50 states, APO/FPO addresses, Puerto Rico, and the District of Columbia)
  • Extended returns: Get 30 extra days to return items online and in-store
  • Save 5% when you use the REDcard at any in-store Starbucks
  • Gain early access to special promotions, events, and products
  • Get a 10% coupon each year on your REDcard anniversary
  • Get access to exclusive offers and items
  • Save 5% more when you subscribe to everyday essentials
  • Save 5 to 50% more with coupons from Cartwheel
  • Account is periodically reviewed for limit increases
  • Use the Wallet service to pay with your smartphone.
Cons
  • Clinic services
  • Target Optical eye exams
  • Prescriptions
  • Items behind the prescription counter
  • Target prepaid and gift cards
  • Gift of College and Stockpile gift cards
  • Some restaurants in Target
  • Gift wrap charges on Target.com
  • Shipping and handling charges on Target.com
  • Other areas limited by law

Rates and fees

Now let’s take a look at the costs associated with this card.

  • No annual fee
  • No over limit fees
  • APR will vary with the market based on the prime rate
  • Late payment and returned payment fees apply

Overall, the Target REDcard does not have many fees. The main costs will come from interest charges if you carry a balance and late fees (if you pay late). The APR changes with the prime rate, so check the current rate when you are applying.

Keep in mind that REDcard has a 25-day grace period. If you pay off your balance in full by the due date each month, you won’t pay any interest.

Check out our review of the Banana Republic store credit card

Account management

Target offers an online platform where REDcard holders can log in and manage their card account. You will be able to review all of your transactions, enroll in credit card statements, set alerts, add additional users, and manage your pin.

When it’s time to pay, you can do so online, over the phone, or at the Guest Services counter in-store. You can also set up autopay if you prefer to have your payments processed automatically.

Target REDcard customer service

Target offers various ways to get in touch with their customer service team if you have questions or problems with your REDcard. You can send them a message online by logging into your account, send a message by mail, or call the Target REDcard phone number at 1-800-424-6888.

How to apply for the Target REDcard

To qualify for this card, applicants will need the following:

  • Be at least 18 years old
  • Social security number
  • A government-issued ID

If you have these ready, you can head over to the website and apply online. Here’s how the process works:

  1. Visit the REDcard product page and click “Apply now.”Target REDCard credit card review

  2. Enter your basic information.Target REDCard credit card review

  3. Provide your identity and income information.Target REDCard credit card review

  4. Review the terms and create a pin.Target REDCard credit card review

And that’s it. Upon approval, you can have the REDcard in hand within a few business days.

REDcard FAQ

Where can you use a Target credit card?

The Target REDcard credit card can only be used in Target stores and online when shopping at Target.com.

Compare the Target REDcard to the best credit cards of 2018

Is the Target REDcard a credit card?

Target offers a REDcard credit card and debit card. The credit card allows you to charge purchases and then receive a monthly bill. The debit card is linked to your checking account, so the funds in your bank account cover the purchases.

Is there an annual fee for Target credit card?

No, there is no annual fee for the card.

Should you get the Target REDcard credit card?

David Yu, Certified Financial Planner, says, “I have the Target REDcard, and I like it. It really isn’t all the much different from other store cards except that you get a 5% savings on every purchase and free shipping on most items.

The current APR is high at 23.90%, so I would not recommend maintaining a balance on it. That 5% of savings will be quickly wiped out by interest costs if you pay off your statement balance in full each month.”

He adds, “The returns are easy as well. You don’t need a receipt. Just give them the card, and they’ll process it. This applies to any card that you charged the purchase on, but knowing that you only use the REDcard for Target purchases simplifies the guessing game of trying to figure out which card you put it on.”

Another user of the card, Alexander Bekhterev, offered the following pros and cons:

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • 5% discount on everything at Target, all the time
  • No need to carry the card in your wallet – you can add it to the Target mobile app and use that barcode to check out at the register
  • Extended returns (30 extra days)
  • Free shipping
  • No annual fee
Cons
  • Although a REDcard can be added to the Target mobile app, it is impossible to configure autopay, see your balance, or select other card-related things from the app
  • No discounts or cash back at other stores
  • High APR
  • Low limit (only $2,000 as opposed to my other credit cards with $5,000 and more)”

See the best cash-back credit cards

The final verdict?

Overall, if you are a loyal Target customer that frequents the store, this is a card you’ll want to consider adding to your wallet.

It will help you save money, offer you exclusive benefits, and extend your return period. However, with the high APR, you’ll want to make sure you pay off this card in full each month.

For those who don’t shop much at Target or want to carry a balance, another card will be more beneficial. You’ll want to find a card that offers you rewards at many locations (or another store you frequent) and has a lower interest rate.

Click here to learn more details about the Target REDcard.

If you’re highly considering applying for this card, see how it stacks up against other credit cards to ensure you’re making the right decision.

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