Target REDcard Credit Card Review

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The Target REDcard credit card, issued by TD Bank, is a no-brainer for loyal shoppers of the retailer, offering a good discount on everyday shopping, along with some perks that will make in-store and online shoppers swoon. If you spend a significant amount of money with Target, this card can save you time and money every time you shop.

Target REDcard™ Credit Card

overall rating
2.6
Target REDcard™ Credit Card
Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Good - Excellent
Regular APR (%) 24.65% variable
Annual Fee $0
Rewards Earning Rate 5% off at Target. In store. Online. Every time.
Ratings Breakdown
for Interest
1.9
for Fees
3.9
for Rewards
4.1
for Credit
4.0

Who is This Credit Card Best For?

  • Avatar for Deal Seeker Persona
    Diligently searches for the best products and delights in a good bargain
    Deal Seeker
  • Avatar for Family Shopper Persona
    Looks for good quality at a fair price while buying for the household
    Family Shopper
  • Avatar for Trendsetter Persona
    Loves being the first to try something new
    Trendsetter
  • Avatar for Brand Loyalist Persona
    Frequently shops with a particular merchant and wants to be rewarded for their loyalty
    Brand Loyalist

Because of the way the Target REDcard Credit Card is designed, it’s best for people who regularly shop at Target stores and on Target.com. The card is a closed-loop store card, which means cardholders can’t use it anywhere else. 

While that makes it less appealing as an everyday card, the value it provides in discounts, free shipping, extended returns, and exclusive extras more than make up for it.

Pros

  • Generous discount on Target and Target.com purchases

  • Free two-day shipping

  • Extended returns and other perks

Cons

  • Limited acceptance

  • No traditional rewards program

  • High ongoing APR

Pros Explained

  • Generous store discount: You get 5% off of all eligible items purchased at Target stores and on Target.com. You’ll be hard-pressed to find a rewards credit card that offers that kind of value on an ongoing basis.
  • Free two-day shipping: Most Target.com shoppers need to order at least $35 worth of items to qualify for free shipping, and even then, it takes three to five days to arrive. With the Target REDcard, you get free standard shipping on most items and free two-day shipping on eligible ones. 
  • Extended returns and other perks: Cardholders get an extra 30 days on top of the regular 90-day return period. You also get 15% off baby essentials subscriptions, early access to select products and promotions, an anniversary offer, and more.

Cons Explained

  • Limited acceptance: The Target REDcard can only be used at Target stores and on Target.com. While this setup is relatively common for store credit cards, there are some that offer the ability to use the card elsewhere.
  • No traditional rewards program: The card provides a 5% discount on eligible items, but doesn’t offer rewards that you can accumulate over time. 
  • High ongoing APR: The card doesn’t offer an introductory 0% APR promotion, and has no special financing promotions like you find with some other store cards. Its ongoing variable APR is on the high side, so it’s best to avoid carrying a balance.

While the Target REDcard Credit Card doesn’t offer a traditional rewards program, the 5% upfront savings has the same effect. Add in the free shipping, extended returns, and other perks, and the card is worth it for loyal customers.

How to Get the Most Out of This Card

The card offers its 5% discount on more items than not, but it’s important to know what’s not eligible in order to maximize the value of the perk. You won’t get discounts on prescriptions and over-the-counter pharmacy items, eye exams, gift cards and other cash-like purchases, some in-store restaurant purchases, and some gift wrap and handling fees at Target.com.

Also, keep in mind that the card’s free, two-day shipping perk doesn’t apply to all online orders. If you need an order fast, check the item page to make sure it’s eligible for two-day shipping and order it before the cutoff time.

If you don’t pay off your balance every month, the hefty 5% discount will soon be swamped by interest charges. 

Customer Experience

TD Bank doesn’t offer a mobile app for the Target REDcard, so you’ll need to do all your account management online. You can, however, add your card to the Target app and use your phone to check out instead of needing to have your card on hand. 

If you have questions about your account, you can call customer service or send a secure message through your online account.

Security Features

Target employs fraud protection processes to help keep thieves from using your card and may call you to verify purchases that look suspicious. However, the card does not offer zero-liability fraud protection, which is standard for many major credit cards. 

This means that if someone steals your card and uses it without your permission, you may be liable for up to $50 of the fraudulent purchases, which is the limit set by the Fair Credit Billing Act.

Target suffered a data breach in 2013 that exposed the credit card details of 41 million customers. In the aftermath, the company announced that all REDcards would require a PIN when used in store. This adds an extra layer of security to your transactions. 

Fees

The Target REDcard Credit Card doesn’t come with a lot of fees, and none of them are out of line with industry standards.

For Target REDcard™ Credit Card
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CURRENT CARD
Target REDcard™ Credit Card
overall rating
2.6
Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application.
350 579
580 669
670 739
740 799
800 850
Good - Excellent
Regular APR (%) 24.65% variable
Annual Fee $0
Rewards Earning Rate 5% off at Target. In store. Online. Every time.

Our Methodology

  • At The Balance, we are dedicated to giving you unbiased, comprehensive credit card reviews. To do this, we collect data on hundreds of cards and score more than 55 features that affect your finances.
  • Our Reviews Are Always Impartial: No one can influence which cards we review, the way we present them to you, or the ratings they receive. The scores and reviews come directly from the data we collect and our editorial expertise, and we focus on three areas:
  • How Much Does It Cost? With credit card debt at an all-time high, we believe you should know the cost of carrying a balance. Because of that, we give regular purchase APRs significant weight in overall scores, and cards receive low marks if they have an array of pricey fees.
  • What Are the Rewards Worth? Cards accumulate rewards in different currencies—points, miles, cash back—and their values vary widely. To simplify the problem, we built a system that fairly compares rewards and gives them a dollar value. We do this by looking at the ways you can earn and use rewards, which includes evaluating Americans’ typical spending habits and analyzing common travel patterns.
  • Does It Make Your Life Easier? Our scoring system favors cards that accept a wide range of credit profiles and offer simple solutions for things like checking your credit score or contacting customer service. Finally, we give preference to credit cards that have several tools for dealing with fraudulent charges.
  • For every review on The Balance, we hold the credit cards to these standards, and we set the bar high. While we recognize the appeal of splashy features like six-digit sign-up bonuses, our approach ensures that credit cards with the best combination of value, affordability, and accessibility receive the highest scores. See our full methodology for more details.