Typically I shy away from store credit cards like the plague. And why wouldn’t I? High interest rates, limited usage potential, and another balance to carry – all for a teaser of Would you like to save 20% off your purchase today? No thanks. I will stick with my own carefully researched high-reward credit cards.
Target was one of the worst pushers. Every single shopping trip, for years, I would be asked if I wanted to sign up for their REDcard. And every single time, for years, I said NO.
Until I quit my job and became more focused on savings opportunities. I finally looked into the REDcard in more detail, decided to sign up, and now love it. I genuinely wish that I had signed up years sooner.
What Is It?
The Target REDcard is a store-specific credit or debit card that will save you 5% on every purchase. Now this is an important distinction – credit OR debit card – yes, there is a choice. I had mistakenly believed that only debit cards were available, which I am not a fan of for a variety of reasons. But a credit card option is offered as well (and is what I went with).
The Target Debit Card is chip-and-pin enabled and draws directly from your checking account. I discourage the use of debit cards for payment, even those that are chip-and-pin enabled, for security and other reasons. But this may be a viable option for someone who is building credit and may not qualify for the Target Credit Card. When paying with the Debit Card, the cardholder will save 5% off of every purchase. In addition, the cardholder can withdraw up to $40 at store checkout. There is no annual fee for the card.
The Target Credit Card similarly provides the cardholder 5% off every purchase with no annual fee. But there is a credit check process to go through at which point a credit limit will be assigned. Note that the APR is very high at 22.90%. This means that the card only saves you money if you pay off your entire balance each month. If you typically carry credit card balances, you’re better off going with a lower interest rate non-Target credit card for your purchases.
As any Target shopper knows, you can simply sign up during your next shopping trip – the cashier will ask you lest you forget. I chose to sign up online. I went to Target’s Website, clicked on Apply Now, and entered the requested information for a Target Credit Card. The system ran my credit and within a few minutes, I received my approval, credit limit amount, and temporary card number for immediate shopping. The physical card arrived in the mail within a couple of weeks.
Why I Love the Target REDcard Credit Card
- I save 5% off of every. single. Target. purchase. If you’re anything like me, you find yourself shopping at Target quite a bit. This 5% really adds up, especially when combined with Ebates (see my Ebates review), the Target Cartwheel app, Target coupons, and manufacturer coupons.
- Shipping on all online Target purchases is FREE (with no minimums).
- No annual fee.
- Additional 30 days for returns (beyond standard return policy).
- Ability to manage account online or via phone app.
- Target donates 1% of your REDcard purchases to the K-12 school of your choice.
- Two card options to suit cardholder preferences – Credit or Debit.
- If Debit, the ability to withdraw up to $40 cash at checkout.
- No more annoying cashier requests to sign up – small, but true.
Don’t wait for years like I did – I kick myself over the missed savings opportunities (I can’t even begin to tell you how much I spend at Target on an annual basis). Sign up and start saving today: Target Red Card.
Disclosure: This post contains affiliate links. All opinions are 100% my own.