Target REDcard Review Pros and Cons

The Target REDcard Review and Pros and Cons

People often overlook or under appreciate retail cards for what they can offer. They can be an excellent tool for building credit if you use them correctly. If you shop at Target a lot, you should have the Target REDcard. The REDcard is a Target credit card, and this article will review it. We’ll list pros and cons as well so you get a feel for what it can offer and the drawbacks.

The Target REDcard offers many rewards and benefits to cardholders.

Target REDcard Pros

Shopping Discounts

The Target credit offers excellent discounts for using it when you shop at Target. You’ll also get 5 percent off if you shop either in the store on online. This 5 percent discount is automatic at checkout, and it applies to every purchase. You won’t have to wait to get a particular point number to use it. You can compare this to a card that gives you 5 percent cash back on all of your purchases. So, this discount has huge savings potential depending on how much you shop at Target.

Free Shipping

If you shop at Target online with the Target REDcard, you’ll get free shipping. This allows you to skip going to the store and standing in line to save on shipping costs. There is also no minimum purchase amount for this to be valid, and there are no strings attached. You get it simply for using the REDcard at

No Annual Fees

The Target REDcard has a $0 annual fee. This means that you can enjoy the full benefit of your discounts on your purchases without interest. This is only valid if you pay your balance off at the end of each billing cycle. So you’re able to get 5 percent off, and no additional fee and this can add up quickly.

Extended REDcard Return Period

The Target REDcard offers a unique perk if you use it in Target or online. So it will extend your return date an extra 30 days, on top of Target’s 90-day return policy. This means you’ll get 120 days to return something if you’re dissatisfied. You know how frustrating it is when you try to return something and you just missed the deadline. This card gives you the flexibility to return something if you forget or lose track of time.

Additional Percentage Off

Another unique point to the Target REDcard is that they reward you for filling your prescription at the store. For every two prescriptions you fill, you’ll get one day with an additional 5 percent off. This means that you’ll make your purchases on the set date and get 10 percent off. So,you don’t have to do anything extra to get this perk. If you’re going to fill your prescription anyway, why not get rewarded for it?

Use in Tandem with the Cartwheel App

If you have a Smartphone, download the Cartwheel app. You’ll get discounts from 5 to 50 percent on special items throughout Target. Before you go shopping, look for things you’re going to purchase and add the code. Once you get to the checkout, the app will give you a barcode. Scan this barcode, and it’ll take the percentages off. Then it’ll take the additional 5 percent off for having and using a REDcard. Update: Cartwheel app has been replaced by the regular Target App.

Special Target REDcard Promotions and Events

Once you get the Target REDcard, you’ll get access to things non-cardholders don’t have. Target will notify you of any upcoming special sales, promotions, or discounts. This warning will give you time to prepare for them and pre-shop online.

Target REDcard Cons

High APR

The Target credit card is a retail card. It has a higher APR, and if you plan to carry a balance the 5 percent reward isn’t worth it. The APR for this card runs at 23.40 percent, and this can add up quickly if you carry a balance.

Fees and Penalties

If you miss a payment with this card, you’ll get a late fee added on. This practice is standard no matter what card you apply for and get. The Target REDcard has a late fee of $35 per late payment. There is also a $27 fee if your bank returns your payment. These costs can add up, especially if you get them more than once.

Certain Items are Excluded
Even if you’re shopping at Target, the Target credit card may not apply to certain items. It doesn’t work on eye exams, certain restaurants, credit account payments, gift wrap, wireless protection, and more. The card website has a complete list of the items you’re not allowed to get the 5 percent off with.

Easy to Max Out

Also, you have to be careful with credit utilization with this card. If you shop a lot at Target, it could be easy to overspend. If you do this, you could be in danger of maxing out your card. This can cause your credit utilization to drop. If this happens, your credit score could drop a few points as well.

The Target Debit Card

On top of the Target REDcard, they also offer a Target debit card as well. This card will link to your bank account and act like an ordinary debit card. The money will come out of your account each time you purchase something at Target or You’re not allowed to use it anywhere else, just in the store or online. This card comes with no annual fee as well. You can withdraw up to $40 at the register when you’re finished shopping.

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Final Thoughts on the Target REDcard

Finally, the Target REDcard is a good way to build credit if you shop at Target frequently. If you don’t carry a balance from month to month, it’s worth the 5 percent discount. All in all, this is a solid retail card that can have huge benefits if you use it correctly. So if you shop at Target and you don’t have this card, look into it. Lastly, it has the potential to save you a lot of money.

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CreditFast website –, provides information about the best credit card applications, as well as other financial products and services. Our goal is to provide you with fair, balanced reviews. Some credit offers that appear on our website are from companies from which CreditFast receives compensation, and some are not.

Monica Kowollik


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