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.
Application Process
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.
Conclusion
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.
I JUST signed up for the debit card on Friday! I’m so excited to start saving!!!
Isn’t it great? I can’t believe it took me so long to sign up!
I never realized that you saved 5% on every purchase, or that they had a debit option (as someone who does not like the idea of credit cards, that is exciting).
Yes! The 5% has really added up for me, along with the free shipping if I shop online!
I love my Target Redcard too. I’ve had one since I used to work there over 10 years ago. The extra 5% discount makes it totally worth it.
And did you receive an additional discount when you worked there? I think I’ve heard that employees receive 10% off and can also combine that with REDcard savings of 5% for a total of 15% off.
I love the Target Red card and Ebates!!! What a win-win. I’ve tried to get people to sign up on my page for Ebates, but no one bites. I think they think its too good to be true.
I admit that I was skeptical of Ebates for a LONG time. It was only when I quit my job and I was looking for more ways to save that I signed up. Boy – I wish I had done it sooner! I am getting so much cash back just for buying what I was going to buy anyway! And when you add it to Target’s REDcard, you’re just increasing your savings there as well.
I didn’t realize the Target REDCard has a debit card option – this is something I may consider! Thanks for sharing the breakdown of benefits for this nifty little savings tool.
I love it and save so much (considering all the things we buy at Target). I hope you like it as well!
My fiancé and I have the RED card and we’re obsessed.
We frequent Target so it’s definitely worth it.
xoxo, Jenny
My husband hasn’t gotten his own yet (he uses mine), but this is a good idea!
I LOVE the redcard…..it’s saved me so much money for no extra effort!
Ditto!
I might sign up for #9 alone! The rest would just be extra blessings!
LOL – It’s true! I got so sick and tired of them asking me to sign up for the REDcard. Now I just pull it out before they even ask.
Okay, okay, okay…I have been debating on the red card for so long. I think you just convinced me. 🙂
LOL – you won’t regret it!
I never knew this – 5% off every purchase! Wow! My girls (adults in their 20’s) would truly be interested in this! Thanks for the great information!
I’m glad it helps! Thanks for stopping by.
All great points! I actually have both the credit card and the debit card! LOL
Oh wow – double the savings opportunity! 🙂
I LOVE my redcard! You can’t beat getting an extra 5% off on great prices already.
I agree! I wish I had signed up for one much sooner.
It’s my favorite card! Use it way too frequently!
Haha me too!
I love my RED card! And yes, it’s nice when they ask you if you’re using your red card to simply have to say “yes”. 🙂
Definitely – no more pressure!
I love Ebates and I love my Red Card. Both crucial pieces of my shopping puzzle!
Every dollar counts!
I really need to make it happen to get a red card!
Another alternative is the Target Prepaid REDcard. The prepaid version offers all the aforementioned REDcard benefits, but it is issued by American Express. As such, it can be used at stores or online anywhere Amex cards are accepted and it provides up to $50K/year purchase protection. Additionally, it doubles as a free checking account (free bill pay & deposit, no min deposit or monthly fees) and it offers budgeting tools with its sub-accounts feature. The Prepaid REDcard requires no credit or ChexSystems approval.
Great point, with some strong benefits!