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|5% discount on all eligible purchases at Target and Target.com||High variable APR on purchases|
|Free shipping on eligible online orders||Can’t be used at other stores|
|Extended returns for both in-store and online orders|
|Can be used with the Target Circle rewards program and other discounts|
|$0 annual fee|
What you need to know about the Target RedCard™
The Target RedCard™ is a rewards credit card that can only be used in Target stores or on Target.com. While opening a retail card can often be a risky decision, the benefits that come with this one make it worth considering for frequent — or even occasional — Target shoppers.
5% discount on Target purchases
The headline feature of the Target RedCard™ is its 5% discount on eligible Target transactions, both in store and online.
That’s a rate you usually only see from bonus categories on certain cash back credit cards. For example, the Discover it® card has included Target purchases in its rotating 5% cash back categories in the past, but that rate lasted for just three months. Plus, Target’s rate is a true discount on your purchase, not cash back that can be redeemed only as a statement credit or deposit.
There are other opportunities to save with the Target RedCard™, too. The 5% discount can be used together with the Target Circle rewards program, which allows customers to save 5% to 50% on hundreds of items by simply scanning a barcode at checkout. And Target RedCard™ cardholders can combine the 5% Target RedCard™ discount with other deals, including other types of in-store coupons and discounts.
But keep in mind that there are a few exceptions to the 5% discount, including prescriptions, Target Optical eye exams (though glasses and contacts do qualify for the discount), and Target gift cards and prepaid cards.
With the Target RedCard™, you can get free two-day shipping on eligible items bought on Target.com. While you can already get free shipping on the site when you make purchases of $35 or more, using the Target RedCard™ removes the spending minimum.
Not all items are eligible for two-day shipping on Target.com. Eligible items will be noted on the product-detail page, in your cart and at checkout. But whether your purchases are eligible for two-day shipping or not, most everything that you buy online with the card ships free.
Target RedCard™ cardholders get an extra 30 days to return items they purchased at Target or on Target.com. While this perk is nice to have, it’s worth remembering that Target’s standard return policy is already generous at 90 days.
For big-ticket items, though, that extra 30 days could add some peace of mind to your purchase.
There are a few more benefits that Target offers exclusively to cardholders.
- Anniversary coupon: Each year on your cardmember anniversary, you’ll receive a 10% discount to use in store, as long as you’re subscribed to Target’s marketing emails.
- Discount at Starbucks: You’ll also get a 5% discount at in-store Starbucks locations.
- Discount on Target subscriptions: Add an extra 5% to Target’s standard 5% discount on subscriptions.
While none of these benefits may make a big difference individually, together they add up to a nice collection of perks.
High interest rate
While the Target RedCard™ has no annual fee, it does come with a high interest rate on purchases — the variable purchase APR currently sits at 24.4%.
If you plan to carry a balance, then this probably isn’t the card for you. If you carry a balance with the Target RedCard™, your interest payments might end up canceling out whatever you get in savings.
Keep in mind that Target also offers a debit card version of the Target RedCard™ with many of the same benefits as the credit card.
Who this card is good for
If you spend a few hundred dollars at Target every year, you’re likely to get meaningful value from the Target RedCard™. The 5% discount on eligible purchases you’ll make at the store provides a clear benefit, and the card is easy to use. Unlike many other store cards, you don’t have to worry about tracking complicated rewards systems — you’ll see your savings when you pay. In fact, the 5% discount is so nice that even occasional Target shoppers may find value in this card.
But if you don’t have a Target near you or simply don’t like to shop there, then you might want to stay away from the card. Also, if you don’t shop often or simply don’t want to carry around another card, you may want to pass.
More than anything, though, the Target RedCard™ probably isn’t going to be the right choice if you plan to carry a balance. The interest rate on purchases is high enough to cancel out any savings you might get from the 5% discount.
Not sure this card is for you? Consider these alternatives.
- Capital One® SavorOne® Cash Rewards Credit Card: This card could be a good option if you want to save on many different kinds of purchases with no annual fee.
- Amazon Prime Rewards Visa Signature Card: If you prefer to do most of your shopping online, this card could be a good choice.
- Costco Anywhere Visa® Card by Citi: This card could be a good option if you fill up your gas tank often.