Our Verdict
The Target RedCard™ Credit Card* hits the bull’s-eye for those who frequently shop within the superstore’s red-accented walls. Because it’s a store card, it can’t be used outside of the Target ecosystem. But you’re likely to find almost everything you could need in-store or online. If you typically carry a balance, the sky-high APR on the card will outweigh the value of the 5% cardholder discount.
Pros
- 5% discount on nearly all Target purchases
- Free two-day shipping on Target.com
- Extended returns for 30 extra days in-store or online
Cons
- Some items do not qualify for the 5% discount
- Very high APR
- Late payment fees and high APR can outweigh the 5% discount
Highlights
- Free two-day shipping available on eligible items at Target.com
- Additional 30 days for returns and exchanges
- No annual fee
- 5% off on purchases at Target in store or online
- No annual fee
Introduction
The Target RedCard™ Credit Card* is a no-annual-fee store card that rewards Target’s most loyal shoppers with a generous 5% off on purchases at Target in store or online purchases. Although the Target RedCard does not offer a traditional credit card rewards program, it could arguably be one of the most rewarding credit cards out there with its straightforward savings on each purchase.
The card’s 5% discount is also stackable with any additional deals available through the Target app and other exclusive sales.
The perks from the Target RedCard Credit Card could easily rack up hundreds of dollars worth of savings each year on a vast array of Target purchases, which is noteworthy for a no-annual-fee card.
The biggest drawback of the Target RedCard Credit Card is the high interest rates and fees, which can quickly snowball and substantially outweigh the value of the 5% savings.
Quick Facts
- No annual fee
- Can only be used on qualifying Target purchases
- Get 5% off on purchases at Target in store or online purchases
- Free two-day shipping from Target.com
- Extended return policy benefit adds 30 days onto Target’s regular return policy
Target RedCard Rewards
Earning Rewards
The card earns an automatic 5% off on purchases at Target in store or online purchases. Be aware that some purchases are not eligible for the 5% discount including Target Optical eye exams, Target and other select gift cards and prescription items.
You can also use the card’s discounts on top of other offers found in the Target app to stack the savings. Other discounts range between 5% and 50% off merchandise and can be stacked with the 5% RedCard discount.
Redeeming Rewards
You don’t have to take steps to redeem your earnings—it happens automatically during the checkout process.
Rewards Potential
Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households brings in $118,438 annually and can reasonably put $39,337 in expenses on a credit card.
Based on Forbes Advisor’s estimates, our sample household would spend $11,790 at Target on groceries, drugstore spending, electronics and apparel. With the Target card, they’d save 5%, or $589.50, for a total outlay of $11,200.50.
Other Target RedCard Benefits
- 5% discount at in-store Starbucks
- 5% discount on clearance
- 5% discount on specialty gift cards
- 5% discount on your same-day-delivery order through Shipt when placed on Target.com (delivery fees may apply)
Fine Print
Interest Rates
- Regular APR: 29.95% variable
Fees
- Annual fee: $0
How the Target RedCard Stacks Up
Target RedCard™ Credit Card* vs. Prime Visa
The Prime Visa is a no-brainer for anyone who regularly shops through the online retailer and/or at Whole Foods Market. The card earns 5% back on purchases at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership, 2% back at gas stations, restaurants and on local transit and commuting (including rideshare), and 1% back on other purchases. This makes it a far more flexible option than the Target RedCard because you can use the card anywhere Visa is accepted.
There’s no annual fee or foreign transaction fees, but a $139 Prime Membership ($69 for students) is required to apply. Rewards can be taken as cash back, a statement credit or used towards future Amazon purchases.
Target RedCard™ Credit Card* vs. Capital One Walmart Rewards® Mastercard®*
If you’re looking to get rewarded for online shopping at a store that can fulfill most of your household needs, the Capital One Walmart Rewards® Mastercard®* could be a worthy option. It earns 5% cash back on purchases made at Walmart.com and the Walmart app, including grocery pickup and delivery, 2% cash back on restaurants and travel, and at Walmart Stores, Walmart & Murphy USA fuel stations and 1% back everywhere else.
There’s no annual fee and no membership requirement to apply. Because the Walmart Rewards Card runs on the Mastercard network, it can be used anywhere Mastercard is accepted.
Target RedCard™ Credit Card* vs. Citi Double Cash® Card
If you’re seeking a card that earns solid returns without being tied to one store, the Citi Double Cash® Card fits bill. The card carries no annual fee and earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. You can take your earnings as a statement credit, cash-back deposit or Citi ThankYou points.
Earning 2% isn’t as generous as the 5% rewards offered by the Target RedCard, but you can use the Citi Double Cash everywhere Mastercard is accepted, which might net you more earnings overall. This card is also useful when paired with the Target RedCard for non-Target shopping.
Compare Target RedCard™ Credit Card With Other Cards
Is the Target RedCard for You?
The Target RedCard offers top-notch value for shoppers who use the retail giant to fulfill most of their household needs. But if you spread your spending among other retailers, a rewards credit card with versatility is more likely to hit the mark.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Annual percentage rates
- Ongoing earning rates
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Target RedCard™ Credit Card, Capital One Walmart Rewards® Mastercard®. The card details on this page have not been reviewed or provided by the card issuer.