Strongly not recommended
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Target’s store card: REDcard, has been around since 1995. Although back then it was called Target Guest Card. As a store card, it can only be used to make purchases at Target stores or at Target.com.
The card comes in two flavors: a credit card or a debit card. The cards offer shoppers exclusive discounts and perks. The credit card is issued by TD Bank USA, the largest bank in Canada and 19th largest in the world.
The debit card version is issued by Target and works like a check drawing directly from your checking account. There is no annual fee and you can withdrawal up to $40 when you go through an in-store checkout.
Who is Target REDcard’s Credit Card Designed For?
Target REDcard is designed for frequent shoppers at Target stores and Target.com who have fair to good credit and want to save money on their purchases. Its free shipping on Target.com purchases make it an attractive option for avid online shoppers.
What are the Rates for Target REDcard’s Credit Card?
Target’s REDcard has a rate of 23.90% APR that applies to all cardholders, regardless of their credit history. There is no penalty rate on late payments, but there are fees to consider. This is a store card, not a regular credit card, so it doesn’t allow for balance transfers or cash advances.
What Are the Fees for Target REDcard’s Credit Card?
Target REDcard doesn’t have an annual fee or an overlimit fee. It does, however, charge a $38 on late payments and a $27 fee on returned payments.
What Is Target REDcard’s Credit Card Rewards Program Like?
Target REDcard doesn’t have a traditional rewards program with points, cashback or miles. Instead it gives shoppers a 5% discount on all purchases, with the exception of pharmacy and gift card purchases. Target’s pharmacy has a separate program with similar terms.
Although a 5% discount may not seem as sexy as a regular rewards program, it provides immediate savings, there are no minimum amounts, and the rewards rate is much higher than most cashback programs.
What about Target REDcard’s Signup Bonus?
Target REDcard does not offer a signup bonus at this time.
Does Target REDcard’s Visa Signature® Credit Card Have Any Other Benefits?
Target REDcard members receive free standard shipping to all 50 states at Target.com. Notice that shipping fees will apply if you upgrade from standard shipping.
Cardholders also receive 30 extra days to return purchases. There are few exceptions, such as mobile phone purchases and items that have a fixed return date.
The 5% savings and other shopping perks are in addition to Target’s Cartwheel discounts and coupons.
How Is Target REDcard’s Special Connections Visa with Rewards Better Than Other Credit Cards?
Target REDcard’s 5% discount, free shipping and extra month to return purchases make it a solid option for frequent Target shoppers but it cannot be used anywhere else. Although marketed as a 5% discount, the Target REDcard offers a higher rewards rate than most store card programs and there are no annual fees or penalty rates to worry about.
The rate is high when compared to traditional credit cards, but it is comparable to the APR charged by most store cards. Needless to say, using this card for its rewards (as generous as they are) only makes sense if you pay off the balance on your card every month as carrying a balance on this card will cancel any savings or perks you may have otherwise enjoyed using the card.
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