Besides Macy’s, Walmart, Amazon, Best Buy, and TJX, Target is one of the top destinations for individuals looking for significant savings. It is the perfect place to do your weekly and monthly shopping due to the plethora of products it offers. This makes the place a one-stop shop for all your needs. What makes it even more attractive for everyone now, however, is the store’s introduction of the RedCard Target credit card.
Intro Bonus: None
Regular APR: 22.90% (Variable)
Credit Score: Good to Excellent
Annual Fee: $0
- The card offers 5% off on almost all Target purchases.
- It requires $0 annual fees.
- There are no reward programs available.
- It has a regular variable APR of 22.90%.
- The card can also be used at in-store Starbucks locations.
- The open-loop RedCard Mastercard version is only offered to upgrade your current RedCard Target store credit card.
RedCard Target Credit Card Review:
The RedCard Target credit card is a closed-loop card with minimal use. It is fashioned to work just mainly at Target stores, so you can’t count on it in terms of flexibility. It also doesn’t come with the traditional welcome bonus (though there is a limited-time $40 off, valid from 1/2 to 1/15) you see in other cards, but it charges zero annual fees. With this, anyone can enjoy it without committing to a yearly payment responsibility. But where it really hits the spot is the unlimited discount opportunities it provides to cardholders.
Unlike other credit cards that rely on cashback programs, RedCard Target credit card offers a direct 5% off on almost anything you’ve purchased on Target. There are no processes needed or days to wait or observe. Whether you are shopping online, in-store, or through Drive Up, you can directly apply the discount on any items except:
- Prescriptions, over-the-counter items located behind the pharmacy counter, and clinic services at Target
- Target Optical eye exams and protection plans (Target Optical products, such as glasses and contact lenses, do receive the 5% discount)
- Target gift cards and prepaid cards, Game On, Gift of College, and lottery gift cards
- Previous purchases
- Target credit account payments, Target Debit Card cashback, and cash advances on the Target Mastercard
- Shipt membership fees
- Alcohol purchases in Indiana
- Wireless protection program purchases and deposits required by mobile carrier
- Gift wrapping services
- Taxes, shipping, delivery, handling, and all other fees or charges
The 5% discount also applies at any in-store Starbucks location, on specialty gift cards, clearance prices, and Target’s top deals of the week. Even better, you can maximize the card’s discount capability by using it with other discounted items! With this, though the card has no reward programs, you can be sure that you can amass hundreds of dollars in savings if you would use the card consistently whenever shopping at Target. As a plus, the card comes with other benefits, including free shipping on most items at Target.com and an additional 30 days for returns and exchanges.
On the other hand, while the RedCard Target credit card is a truly reliable tool for shopping, you might still want to use it with caution. The card has a regular 22.90% variable APR, and the late payment penalty fee can hit up to $40. That being said, enjoying its benefits is only possible if you can make your payments on time.
Target also offers an open-loop version of the Target credit card called RedCard Mastercard. However, it is not available for new applicants. Instead, it serves as an upgrade that will be offered to you after some time of properly using the RedCard closed-loop credit card version. And although the RedCard Mastercard is open-loop in nature, its benefits are solely focused on Target fanatics. Thankfully, there is a better alternative for it: general rewards cards. Such cards offer the utmost flexibility wherever you use them. Some even allow you to convert your points in a variety of ways. You can try those cards provided by Bank of America, Capital One, Discover, and Chase to learn more about those perks.