Target RedCard™ Credit Card Review: 5% Off at Target Plus 2-Day Shipping

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Target RedCard™ Credit Card

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• Our Rating 3/5 How our ratings work
• APR29.95% Variable APR
• Annual Fee$0

The best part of the Target RedCard is the 5% discount at Target and Target.com. Those with the Target Mastercard can earn additional rewards on dining and gas. If you’re a frequent Target shopper, this card could save you a solid chunk of cash.

Great Card for Loyal Target Fans Who Want to Unlock More Savings

Target‘s credit card offerings, the Target Mastercard (which can be used at other stores) and the Target Credit Card (which can’t), both come with nice benefits for frequent Target shoppers. You’ll save 5% on most Target purchases online and in store, enjoy free 2-day shipping on online orders and get an additional 30 days to return or exchange your items at Target. If you’re working on building your credit and can pay off your card in full each month, the Target RedCard™ Credit Card can be a great way to earn discounts and rewards just for shopping at Target. Otherwise, the high interest rate these cards charge negates any benefit you’ll get.

Card Highlights

• No annual fee, but very high interest rates 
• Credit card available as a store credit card or Mastercard 
• All cards offer 5% off Target purchases, free two-day shipping from Target.com, an extended return window and special items and offers
• Target Mastercard earns 2% on dining and gas, 1% everywhere outside of Target

Sign-Up Bonus

The Target RedCard doesn’t offer a regular, ongoing sign-up bonus. However, Target does offer bonuses for new cardholders occasionally, usually in the form of a Target gift card or a discount towards a future Target purchase.

Currently, new cardholders can save $50 on a future qualifying purchase over $50 if approved for the RedCard. Offer is valid from Valid 10/29/23 – 12/9/23.

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Earning Rewards

Cardholders can earn rewards and save on their Target purchases:

• 5% off at Target and Target.com
• 2% back on gas and dining purchases (Target Mastercard exclusive)
• 1% cash back on all other purchases outside of Target (Target Mastercard exclusive)

You’ll earn 5% on eligible Target purchases no matter which Target RedCard you get. (Prescriptions, over-the-counter items, clinic services at Target and eye exams are a few exclusions to the rule.) But whether you can also earn rewards depends on which credit card you get. Only the Target Mastercard lets you earn rewards and use the card outside of Target (anywhere Mastercard is accepted). Unfortunately, it’s not up to you to choose this card: You’ll be assigned to this one or another, depending on your credit, when you apply. 

If you are approved for the Target Mastercard, you’ll earn 2% cash back on dining and gas purchases and 1% cash back on all other purchases outside of Target. (You’ll only get the 5% discount on Target purchases; the discount and the rewards don’t stack.) There aren’t any limits on how much you can stockpile rewards. 

One important note on cash back: You’ll only earn the higher 2% back rate at stores that are dedicated to these purposes, due to the idiosyncrasies of how merchants are classified. For example, you won’t earn the 2% rewards rate if you buy a sandwich from a lunch counter within a garden center.

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Redeeming Rewards

When redeeming rewards earned with the Target RedCard, here are some things to know:

• Can only redeem rewards for Target gift cards
• Can’t redeem any rewards until you reach a rewards balance of $10
• Rewards never expire, but you will lose any rewards balance in your account when you close the card

You can redeem your rewards for a Target gift certificate anytime after you reach a rewards balance of $10 or more. You can choose how much you want to redeem, which you request via your online account or by calling the number on the back of your card. You can also choose whether you want a physical Target gift certificate mailed to you or a digital Target gift card. 

Tip: Use Your 5% Off on Specialty Gift Cards Purchased at Target

Since the Target rewards program is fairly simple, there aren’t a ton of ways you can maximize your rewards. However, the basic 5% discount on Target purchases—available with any Target RedCard, not just the Target Mastercard—also applies to gift cards for other stores like Disney, Starbucks and movie theaters. This is one handy way to extend your 5% discount to other stores.

Card Benefits and Perks

• Special sales and items 
• 5% discount on Target purchases

The standout benefit of the Target RedCard is the 5% discount on Target purchases. Since Target carries a wide range of items—groceries, home goods and clothing, with even more available online—that’s like getting an automatic 5% discount on most of the things you need to buy. Plus, it’s available with all Target RedCards, even the non-credit options. 

You’ll also get access to special deals and items just for RedCard holders. It’s hard to gauge whether this is really worth anything of value, though, since Target doesn’t specify what those might be.

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Drawbacks

• Very high interest rates
• Can’t choose which credit card option you get
• Target Credit Card can only be used for Target purchases
• Target Mastercard rewards can only be redeemed for Target gift certificates of $10 or more

Target offers several types of RedCards, which is handy in expanding access to everyone, but it also leaves a bit to be desired if you’re looking for a specific credit card. The Target Credit Card, for example, can only be used at Target. A good credit score might automatically approve you for the Target Mastercard whether you want it or not. Some folks may prefer the store-only card to limit spending temptations, but Target doesn’t give you that option. 

What's more, the credit cards charge very high interest rates—it’s one of the biggest drawbacks of the Target RedCard. We highly advise against carrying a balance on this card. Instead, use it to earn rewards and discounts, then pay it off each month.

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Annual Fee

The Target RedCard doesn’t charge an annual fee.

APR

The Target RedCard Credit Card and Mastercard both charge a 29.95% Variable APR on all purchases. You can use the Target Mastercard for cash advances from an ATM, but you’ll be charged an even higher rate. These are very high interest rates comparatively and one of the main drawbacks of Target RedCards.

Other Fees

The Target RedCard also comes with a few other fees:

• Late payment: Up to $41
• Returned payment: Up to $30
• Cash advance fee: $10 or 3% of the advance amount, whichever is more (Target Mastercard only)

Surprisingly, the Target Mastercard does not charge a foreign transaction fee.

Recommended Credit Score

One of the nice things about the Target RedCard is there are options for everyone. The listed requirements for a Target RedCard Reloadable Card suggest that the card is a good option for people without a bank, while the Target RedCard Debit card might suit those who have a bank account but don’t want a credit card. These two cards don’t rely on credit, so there is no minimum credit score requirement.

There are two RedCard credit cards as well, and whichever one you’re approved for depends on your creditworthiness when you apply. The Target RedCard Credit Card is a store credit card that can only be used for Target purchases in store or online. Typically, store credit cards are easier to get approved for if you have bad credit. 

The Target RedCard Mastercard requires better credit, although Target doesn’t specify an exact score. Generally, if you have good or excellent credit, you’re more likely to be approved for any credit card.

Is the Target RedCard Worth It?

If you shop at Target a lot, we recommend the Target RedCard for its great 5% discount. If you don’t want a credit card, don’t have good credit or would be tempted to carry a balance, the reloadable card or debit card are smarter options because they’ll help you avoid high interest rates. 

The Target Mastercard or Target Credit Card are good choices for building credit. The Target Mastercard also allows you to earn rewards outside of Target, but better, higher-earning cash back card options are available for this—with fewer limits on reward redemptions, too.

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FAQs

• Can the Target RedCard only be used at Target?

  The Target Debit Card and Target Credit Card can only be used at Target, while the Target RedCard Reloadable Card and Target Mastercard can be used at other stores.

• Does the Target RedCard build credit?

  The Target Credit Card and Target Mastercard RedCard can help you build credit if you avoid racking up a large balance and make all of your payments on time.

• Does the Target RedCard affect your credit score?

  Yes, if you have the Target Credit Card or Target Mastercard RedCard. Credit cards can increase or decrease your credit score, depending on many factors. Missing a payment can decrease your credit score, while making on-time payments over time can improve your credit score.

• Is it hard to get approved for the Target RedCard?

  You can get approved for the reloadable Target RedCard without any credit at all. The Target Credit Card may be more widely available, like most store credit cards. The Target Mastercard likely requires a good or excellent credit score to get approved.

• What is the Target RedCard credit limit?

  Target doesn’t specify any set credit limit for the Target RedCard. Instead, your credit limit will depend on personal factors like your credit score and your payment and purchase history.