Target REDcard credit card review: Should you apply?

Review Summary: The Target REDcard is a store credit card you can use for shopping at Target stores and online at Target.com. The card gives you 5% savings on the majority of purchases at Target, though it also charges a lot of interest if you don’t pay off your card in full by the due date.

Pros

Cons

• 5% back on most Target purchases in-store or online
• Annual 10% savings coupon on card anniversary
• Free shipping at Target.com for cardholders
• Return window extended by 30 days for most items

• • High 25.15% variable APR interest rate if you don’t pay it off
  • Store cards can harm your credit score
  • Only works at Target

How the Target REDcard credit card works

The Target REDcard is a store credit card from Target. This card offers a valuable 5% discount on all eligible Target purchases. Target also offers a debit card which works as an alternative to the REDcard for those who don’t want to deal with credit.

With this store credit card, you can make purchases at Target and Target.com only. That means the card doesn’t work anywhere else. This card only makes sense if you are a dedicated Target shopper and would get extensive value from the 5% discount.

The card currently charges an interest rate of 25.15% APR, which can change at any time with market interest rates. That’s on the high end for most credit cards. This is why we only recommend this (and any credit card) if you will pay it off in full by the monthly due date. If you do so, you’ll never pay any interest.

While this card charges no annual fee, it offers many benefits similar to what you may see with something like Amazon Prime. Cardholders get free two-day shipping on eligible Target.com purchases, 30 days extra for returns both in-store and online, and 15% off when you subscribe for baby items like diapers, wipes and formula.

Target REDcard review: Table of contents

How to earn rewards

You can earn Target REDcard rewards with every purchase at Target and Target.com. For coffee fans, that includes in-store Starbucks locations too. You’ll get 5% back on all eligible purchases. The Cartwheel program gives you up to 50% off on bonus items. You can also subscribe for a total 10% discount on a wide range of items. Many gift cards are included, giving you an effective 5% off at those restaurants, movie theaters, travel companies and other partners. Just use the card for the eligible purchase and the discount will be applied automatically.