Who is This Credit Card Best For?
Diligently searches for the best products and delights in a good bargain
Looks for good quality at a fair price while buying for the household
Loves being the first to try something new
Frequently shops with a particular merchant and wants to be rewarded for their loyalty
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.
Generous discount on Target and Target.com purchases
Free two-day shipping
Extended returns and other perks
No traditional rewards program
High ongoing APR
- 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.
- 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.
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.
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.
The Target REDcard Credit Card doesn’t come with a lot of fees, and none of them are out of line with industry standards.