The Target RedCard™ is one of the few store credit cards that might actually be worth the trouble. On top of a regular discount cardholders receive at checkout, the card's range of perks can help save you money. Read our full Target RedCard™ review to see if it's right for you.
Ratings Methodology
Target RedCard
Rating image, 3.50 out of 5 stars. 
3.50 stars
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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= Fair
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Credit Score:
Good (670-850) Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
22.90%, variable
Rewards
5% discount on target purchases
Annual Fee
$0
Welcome Offer
N/A
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Good for loyal Target shoppers who can make the most of the purchase discount and free shipping benefits. Otherwise, the card's features are limited for most other people.
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- Discount on purchases (in lieu of cash back)
- Free shipping for online orders
- No annual fee
- Exclusive extras
- High APR
- Poor sign-up bonus
- Closed-loop card
- Discount limits
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- 5% discount on Target purchases
- No annual fee
- Free shipping for online orders
- Extended returns with 30 additional days
Full Target RedCard™ review
This credit card is a good fit for: Loyal Target shoppers who want a discount on Target purchases and free shipping benefits.
Top perks
If you're a Target regular, the Target RedCard™ can have a lot of valuable perks.
5% discount on purchases
Unlike your typical cash back card, the Target RedCard™ doesn't earn purchase rewards that you'll need to redeem down the line. Instead, you'll get a 5% discount on your eligible purchases when you checkout, both in store and online. So, if you make a $100 purchase, your total will be knocked down to $95 when you pay with your Target RedCard™. The 5% discount also applies to Starbucks outlets inside Target stores, as well as Target's various subscription services.
Free shipping for online orders
One of the biggest downsides to ordering things online is the ridiculous fees you may pay to have your items delivered. The Target RedCard™ eliminates that problem with free two-day shipping on most online purchases. There may be a minimum order amount, and you will have to pay fees if you want upgraded shipping. Additionally, the free shipping offer doesn't apply to same-day delivery or grocery delivery orders made through Shipt.
No annual fee
As with most store cards, the Target RedCard™ is a no-annual-fee credit card. This is a nice benefit because any savings -- including your 5% discount at check out -- won't be lost on a pricey annual fee. And, in contrast to a store card like the Prime Visa that requires a Prime membership, you won't need to join the store's membership program to unlock the best discounts and perks.
Exclusive extras and extended returns
If the cardholder discount and free shipping weren't enough incentive, the Target RedCard™ also comes with a host of exclusive extras, including an extended return window for cardholders. That's right, you'll have an additional 30 days to return purchases made with your Target RedCard™ on top of the standard return period (other regular return rules and restrictions apply). Other exclusive extras include special discounts and offers, as well as occasional free items and gifts.
Alternatives to consider
If you want to earn cash back everywhere: The no-annual-fee Citi® Double Cash Card – 18 month BT offer earns 2% cash back on purchases, everywhere. You'll get 1% when you buy and 1% when you pay on time. So, you can earn 2% cash back everywhere you shop, including Target.
If you want to earn a big sign-up bonus: The Chase Freedom Unlimited® has a well-rounded and robust rewards program, plus it comes with no annual fee. It also packs in a potentially big sign-up bonus.
As of May. 18, 2023
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| Citi® Double Cash Card – 18 month BT offer | Chase Freedom Unlimited® |
| Rating image, 4.50 out of 5 stars. 4.50 stars Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 5.00 out of 5 stars. 5.00 stars Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Apply Now for Citi® Double Cash Card – 18 month BT offer On Citi's Secure Website. | Apply Now for Chase Freedom Unlimited® On Chase's Secure Website. |
| Read Full Review | Read Full Review |
| Credit Rating Requirement: Good/Excellent (670-850) Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions. | Credit Rating Requirement: Good/Excellent (670-850) Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions. |
| Welcome Offer: N/A | Welcome Offer: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back. That's 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases. Up to $300 cash back |
| Rewards Program: 2% cash back: 1% when you buy plus 1% as you pay Up to 2% cash back | Rewards Program: Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases 1.5% - 5% cash back |
| Intro APR: N/A Purchases: N/A Balance Transfers: 0%, 18 months | Intro APR: 0% Intro APR on Balance Transfers, 15 months Purchases: 0% Intro APR on Purchases, 15 months Balance Transfers: 0% Intro APR on Balance Transfers, 15 months |
| Regular APR: 18.99% - 28.99% (Variable) | Regular APR: 19.74% - 28.49% Variable |
| Annual Fee: $0 | Annual Fee: N/A $0 |
| Highlights:
| Highlights:
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| Apply Now for Citi® Double Cash Card – 18 month BT offer On Citi's Secure Website. | Apply Now for Chase Freedom Unlimited® On Chase's Secure Website. |
| Show More Show Less | |
What could be improved
So far as store cards go, the Target RedCard™ has a lot to offer. However, there are also some drawbacks.
High APR and no intro offers
High credit card APRs are a big negative for most store cards, and the Target RedCard™ is no exception. It's definitely a bad -- and potentially expensive -- idea to carry a balance on your Target RedCard™. You'll likely get a lower (better) APR from a regular credit card (unless you have poor or limited credit). Moreover, the Target RedCard™ doesn't offer any kind of introductory APR deal, like 0% intro APR credit cards do. You won't get a break on your purchase APR. Only use your Target RedCard™ for purchases you can pay off right away.
Poor sign-up bonus
New cardholders will receive a one-time $50 discount off a qualifying purchase of $100 or more. As sign-up bonuses go, this one doesn't really hold up against most regular rewards cards -- or even your typical store card.
Only usable at Target
Perhaps the most serious drawback of the Target RedCard™ is that it's a closed-loop store card, meaning it can only be used to make purchases at Target and Target.com. That's because the Target RedCard™ doesn't operate on any of the major credit card networks like Visa or Mastercard. So, you can try swiping your closed-loop card at another retailer, but it won't work.
Discount doesn't apply to everything
As great as the Target RedCard™'s 5% discount may be, it does have limitations. The discount won't actually apply to every single Target item you purchase. For example, you can't get the 5% discount on prescriptions or over-the-counter pharmacy items. It also won't apply to an eye exam or protection plan through Target Optical (though the actual frames and contact lenses may qualify). Other types of purchases that may not receive the discount include: gift cards, prepaid cards, Shipt fees, gift-wrapping services, wireless deposits, and taxes and delivery charges.
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Suggested credit score
You'll need to have at least fair or average credit -- a credit score over 580 -- to qualify for the Target RedCard™. Since it's a closed-loop store card (only good at Target), it may be easier to qualify for than a typical credit card. Though, like any card, you'll have a better chance of being approved if you have good credit or better. Applicants with lower credit scores may also be offered a lower credit limit.
Target RedCard™ is right for you if:
In the world of credit card rewards, it's hard to find a card that provides a consistent 5% return on purchases. The Target RedCard™'s hassle-free 5% discount on your purchases at checkout does just that. When you throw in the perks, like free shipping, you have the makings of a very useful store card -- provided you're a regular Target shopper.
Even if you're only an occasional Target shopper, you could get some benefit out of the Target RedCard™, though you'd likely be better served with a regular cash back card that can be used anywhere.
FAQs
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The credit limit for the Target RedCard™ generally ranges from $200 to $2,500 or more. Credit limits tend to start low, but cardholders who consistently pay on time can receive sizable credit limit increases.
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The Target RedCard™ can be used in Target stores, on its website, and at in-store Starbucks.
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Yes, the Target RedCard™ can build credit. Card activity is reported to all three consumer credit bureaus, so you can raise your credit score if you use your card and pay the bill on time.
Our Credit Cards Expert
By:Brittney Myers
Writer
Brittney started her writing career in the world of science, putting her physics degree to good use. Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. She wholly believe most problems can be solved with the right research -- and a good spreadsheet -- and she specializes in translating complex financial topics into actionable advice to help educate and empower readers.