Target RedCard: Is It Right for You?

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The Target RedCard is one of the few store credit cards that might actually be worth the trouble. On top of a regular discount cardholders receive at checkout, the card's range of perks can help save you money. Read our full Target RedCard review to see if it's right for you.

Ratings Methodology

Target RedCard

Rating image, 3.50 out of 5 stars.

3.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Rating image, 3.50 out of 5 stars.

Credit Score:Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good (670-850)

Poor

Fair

Good

Excellent

300-579

580-669

670-739

740-850

Credit ScoreFalling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Good (670-850)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

28.15%, variable

Rewards5% discount on Target and Target.com purchases. 2% cash back on gas and dining purchases. 1% cash back on other purchases outside of Target.

1%-5% rewards

Annual Fee

Welcome Offer

Save $40 on a future qualifying purchase over $40 when approved for a credit card.

Full Target RedCard™ review

This credit card is a good fit for: Loyal Target shoppers who want a discount on Target purchases, earn Target gift card rewards on all purchases, and free shipping benefits.

Top perks

If you're a Target regular, the Target RedCard can have a lot of valuable perks.

5% discount on purchases

Unlike your typical cash back card, the Target RedCard doesn't earn purchase rewards that you'll need to redeem down the line. Instead, you'll get a 5% discount on your eligible purchases when you checkout, both in store and online. So, if you make a $100 purchase, your total will be knocked down to $95 when you pay with your Target RedCard. The 5% discount also applies to Starbucks outlets inside Target stores, as well as Target's various subscription services.

Target gift card rewards on all purchases

When you use your Target RedCard Mastercard to make an eligible purchase, you earn 2% rewards toward a Target GiftCard for each eligible purchase you make in gas or dining merchant categories, and 1% for all other purchases.

You can redeem rewards if you have earned at least $10 in rewards and otherwise qualify for rewards redemption. You also will not earn 1% rewards when you shop at Target or Target.com, but the 1%-5% rewards applies.

Free shipping for online orders

One of the biggest downsides to ordering things online is the ridiculous fees you may pay to have your items delivered. The Target RedCard eliminates that problem with free two-day shipping on most online purchases. There may be a minimum order amount, and you will have to pay fees if you want upgraded shipping. Additionally, the free shipping offer doesn't apply to same-day delivery or grocery delivery orders made through Shipt.

No annual fee

As with most store cards, the Target RedCard is a no annual fee credit card. This is a nice benefit because any savings -- including your 5% discount at check out -- won't be lost on a pricey annual fee. And, in contrast to a store card like the Prime Visa that requires a Prime membership, you won't need to join the store's membership program to unlock the best discounts and perks.

Exclusive extras and extended returns

If the cardholder discount and free shipping weren't enough incentive, the Target RedCard also comes with a host of exclusive extras, including an extended return window for cardholders. That's right, you'll have an additional 30 days to return purchases made with your Target RedCard on top of the standard return period (other regular return rules and restrictions apply). Other exclusive extras include special discounts and offers, as well as occasional free items and gifts.

Alternatives to consider

If you want to earn cash back everywhere: The no-annual-fee Citi Double Cash® Card earns 2% cash back on purchases, everywhere. You'll get 1% when you buy and 1% when you pay on time. So, you can earn 2% cash back everywhere you shop, including Target.

If you want to earn a big sign-up bonus: The Chase Freedom Unlimited® has a well-rounded and robust rewards program, plus it comes with no annual fee. It also packs in a potentially big sign-up bonus.

See more great picks: Best Credit Cards

As of Nov. 27, 2023


Citi Double Cash® Card	Chase Freedom Unlimited®
Rating image, 4.00 out of 5 stars. 4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor	Rating image, 5.00 out of 5 stars. 5.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Apply Now for Citi Double Cash® Card OnCiti'sSecure Website. Rates & Fees	Apply Now for Chase Freedom Unlimited® OnChase'sSecure Website.
Read Full Review	Read Full Review
Credit Rating Requirement:Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions. Recommended Credit Score required for this offer is: Fair to Excellent (580-850) Poor Fair Good Excellent 300-579 580-669 670-739 740-850 Fair to Excellent (580-850)	Credit Rating Requirement:Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions. Recommended Credit Score required for this offer is: Good/Excellent (670-850) Poor Fair Good Excellent 300-579 580-669 670-739 740-850 Good/Excellent (670-850)

Welcome Offer:Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. 20,000 ThankYou® Points	Welcome Offer:SPECIAL OFFER: Unlimited Matched Cash Back. Chase will automatically match all the cash back you earned at the end of your first year! There is no limit to how much cash back you can earn. Matched Cash Back

Rewards Program:2% cash back: 1% when you buy plus 1% as you pay Up to 2% cash back	Rewards Program:Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases 1.5% - 5% cash back

Intro APR:N/A Purchases: N/A Balance Transfers: 0%, 18 months	Intro APR:0% Intro APR on Balance Transfers, 15 months Purchases: 0% Intro APR on Purchases, 15 months Balance Transfers: 0% Intro APR on Balance Transfers, 15 months

Regular APR: 19.24% - 29.24% (Variable)	Regular APR: 20.49% - 29.24% Variable

Annual Fee: $0	Annual Fee:N/A $0

Highlights: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24. Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 19.24% - 29.24%, based on your creditworthiness. Balance Transfers do not earn cash back. Intro APR does not apply to purchases. If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).	Highlights: SPECIAL OFFER: Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match. Unlimited 1.5% cash back is just the beginning of what you can earn. You'll enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases. Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%. No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open! No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more. Member FDIC
Apply Now for Citi Double Cash® Card OnCiti'sSecure Website. Rates & Fees	Apply Now for Chase Freedom Unlimited® OnChase'sSecure Website.
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What could be improved

So far as store cards go, the Target RedCard has a lot to offer. However, there are also some drawbacks.

High APR and no intro offers

High credit card APRs are a big negative for most store cards, and the Target RedCard is no exception. It's definitely a bad -- and potentially expensive -- idea to carry a balance on your Target RedCard. You'll likely get a lower (better) APR from a regular credit card (unless you have poor or limited credit).

Moreover, the Target RedCard doesn't offer any kind of introductory APR deal, like 0% intro APR credit cards do. You won't get a break on your purchase APR. Only use your Target RedCard for purchases you can pay off right away.

Poor welcome bonus

New cardholders will receive a one-time $40 discount off a qualifying purchase of $40 or more. As welcome bonuses go, this one doesn't really hold up against most regular rewards cards -- or even your typical store card.

Rewards only usable at Target

Perhaps the most serious drawback of the Target RedCard is that the benefits can only be used to make purchases at Target and Target.com.

Discount doesn't apply to everything

As great as the Target RedCard's 5% discount may be, it does have limitations. The discount won't actually apply to every single Target item you purchase. For example, you can't get the 5% discount on prescriptions or over-the-counter pharmacy items. It also won't apply to an eye exam or protection plan through Target Optical (though the actual frames and contact lenses may qualify). Other types of purchases that may not receive the discount include: gift cards, prepaid cards, Shipt fees, gift-wrapping services, wireless deposits, and taxes and delivery charges.

Learn more: Best Store Credit Cards

Find the best credit card for your needs

Compare credit card rewards, fees, APRs, and more using our side-by-side comparison tool.

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Suggested credit score

You'll need to have at least fair or average credit -- a credit score over 580 -- to qualify for the Target RedCard. Like any card, you'll have a better chance of being approved if you have good credit or better. Applicants with lower credit scores may also be offered a lower credit limit.

Read more: Best Credit Cards for Fair/Average Credit

Target RedCard is right for you if:

In the world of credit card rewards, it's hard to find a card that provides a consistent 5% return on purchases. The Target RedCard's hassle-free 5% discount on your purchases at checkout does just that. You can use the Target RedCard Mastercard for any purpose and receive up to 2% rewards in the form of a Target gift card.

When you throw in the other perks, like free shipping, you have the makings of a very useful store card -- provided you're a regular Target shopper.

Even if you're only an occasional Target shopper, you could get some benefit out of the Target RedCard, though you'd likely be better served with a regular cash back card that can be used anywhere.

See more options: Best Grocery Credit Cards

FAQs

The credit limit for the Target RedCard™ generally ranges from $200 to $2,500 or more. Credit limits tend to start low, but cardholders who consistently pay on time can receive sizable credit limit increases.
The Target RedCard™ can be used in Target stores, on its website, and at in-store Starbucks.
Yes, the Target RedCard™ can build credit. Card activity is reported to all three consumer credit bureaus, so you can raise your credit score if you use your card and pay the bill on time.

Our Credit Cards Experts

By:Brittney Myers

Writer

Brittney started her writing career in the world of science, putting her physics degree to good use. Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. She wholly believe most problems can be solved with the right research -- and a good spreadsheet -- and she specializes in translating complex financial topics into actionable advice to help educate and empower readers.

By:David Chang, ChFC®, CLU®

Writer, Consultant

David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.

Fact CheckedEric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

As an expert with a deep understanding of credit cards and personal finance, I can confidently provide insights into the information presented in the article about the Target RedCard. My expertise is built on a comprehensive knowledge of credit card features, rewards programs, and considerations for consumers.

Firstly, the article discusses the Target RedCard, emphasizing its unique features and perks. The credit card offers a 5% discount on Target and Target.com purchases, 2% cash back on gas and dining, and 1% cash back on other purchases. Additionally, it highlights the welcome offer of saving $40 on a future qualifying purchase over $40 when approved for the credit card.

The article uses a rating methodology based on a 5-star scale to assess the Target RedCard, indicating that it has received a rating of 3.50 out of 5 stars. The ratings consider factors such as versatility and cost-cutting benefits.

Key concepts covered in the article include:

Credit Score Requirements: The recommended credit score for the Target RedCard is "Good" (670-850). The article emphasizes that falling within this credit range does not guarantee approval, and an application must be submitted for a potential decision.
Introductory APR and Regular APR: The Target RedCard does not offer an introductory APR for purchases or balance transfers. The regular APR for purchases is 28.15%, variable.
Rewards Program: The credit card provides a 5% discount on Target purchases, 2% cash back on gas and dining, and 1% cash back on other purchases. Additionally, users can earn Target gift card rewards on all purchases.
Annual Fee: The Target RedCard does not have an annual fee, making it a cost-effective option for cardholders.
Welcome Offer: New cardholders can save $40 on a future qualifying purchase over $40 when approved for the credit card.
Perks and Benefits: The Target RedCard offers free shipping for online orders, exclusive extras, and extended returns with an additional 30 days for cardholders.
Drawbacks and Limitations: The article notes some drawbacks, including a high APR, lack of intro offers, a modest welcome bonus, and rewards only usable at Target.
Alternatives: The article suggests alternative credit cards for those seeking cash back or a big sign-up bonus, providing options like the Citi Double Cash® Card and Chase Freedom Unlimited®.
Suggested Credit Score: The Target RedCard is recommended for individuals with at least a fair or average credit score (580 and above).
Expert Contributors: The article features expert contributors, including Brittney Myers and David S. Chang, who provide valuable insights and expertise in personal finance and credit cards.

In summary, the Target RedCard is positioned as a suitable option for loyal Target shoppers, offering a combination of discounts, rewards, and additional perks. The article provides a comprehensive review, considering both the positive aspects and potential drawbacks of the credit card.

Target RedCard: Is It Right for You? | The Ascent (2024)