Target RedCard — Target’s Store Credit Card

Andrew Reyes  | 
  • Annual percentage rate (APR): 22.90%.
  • Purchase intro APR: None.
  • Rewards: 5% discount on Target purchases with the card.
  • Annual fee: $0.
  • Late fee: Up to $40.
  • Credit score: Good to Excellent (700-850).
  • Compare cards here.

Benefits

  • Target discount and exclusive offers: When you use your Target RedCard for an in-store or online purchase, you automatically qualify for a 5% discount on the purchase price. On your one-year anniversary of being an account holder, you’re eligible for a 10% discount on a Target purchase, as long as you’re signed up for Target marketing emails. You’re also eligible for a 10% discount at Hotels.com. Exclusive Target REDcard offers, such as special items or additional discounts, are updated regularly and emailed to cardholders.
  • No annual fee: While some credit cards charge an annual fee, there’s no fee associated with the Target RedCard. You’ll only pay more than your card balance if you accumulate interest, make a late payment, or have a payment returned.
  • Free shipping and extended returns: When you use your Target RedCard while shopping online with Target, you may be eligible for free standard shipping. Some items may even qualify for free two-day shipping. Your purchases are also eligible for an additional 30 days for returns, beyond Target’s standard return policy. Non-returnable items and purchases from the optical department are excluded from this extended return policy.

Drawbacks

  • Penalty fees: If you make a late payment, you’re charged up to a $40 late payment fee. If your payment is returned for insufficient funds or another reason, a $29 fee is tacked onto your balance. If your balance carries over to the next statement, it’s susceptible to a 22.90% APR. To avoid these charges and fees, pay your entire statement balance at the close of the billing cycle. Be sure your payment is sufficient and received on time.
  • Can only be used at Target: The Target RedCard can only be used for purchases at Target stores or online with the retailer. You can’t use the card for purchases with other businesses or for balance transfers. You’re also not eligible for cash advances or to request cash back at checkout. To request cash, you’ll need to use your debit card at checkout.
  • High APR: If you leave a balance on your card until the next billing cycle, a 22.90% APR applies to this unpaid balance. This high APR causes your balance to grow and may make it hard to catch up on payments. To avoid paying extra for your Target purchases, pay off your balance in full each month.

What Can You Expect From the Target RedCard?

Application Process

You can apply for a Target RedCard on the retailer’s website or in person at checkout. To apply, you must provide your personal information and Social Security number so the company can run your credit, verify your employment, and review other financial details. If you’re approved for the Target RedCard, you can begin using it for purchases at Target to receive your 5% discount.

Paying Your Balance

You can pay your balance online, by phone, at the Guest Service Counter in a Target store, or by mail. If you choose to pay your statement online, you’ll be prompted to create a myRedCard online account with Target. When you log into this account, you can view your transactions, review exclusive offers for cardholders, and pay your balance.

Redeeming Your Target Discount

Your 5% discount on Target merchandise is automatically applied when you use your Target RedCard as your payment method. Whether you’re making a purchase in a Target store or on the retailer’s website, your 5% discount is applied without entering a code or using a coupon, as long as you enter your RedCard information or use your card exclusively at checkout.

Who Should Get the Target RedCard?

Since the perks, offers, and discounts for the Target RedCard are exclusively used at Target stores and through online purchases with the retailer, it’s best for consumers with good credit who shop with the retailer frequently. The card is associated with a high APR and steep late or returned payment fees so it’s ideal for consumers who plan to pay their statement balances on time and in full to avoid these charges.

If you shop at Target frequently and feel you would benefit from a discount, free shipping, and other exclusive offers, consider the Target RedCard. Be aware of the penalty fees for late payments and the steep APR before applying for the card.

Compare other rewards credit cards and learn more here.


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