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Are you considering signing up for the Target RedCard credit card?
You might be wondering if the rewards credit card is worth adding to your wallet.
Target RedCard Is Worth It to You If:
- You’re a frequent Target shopper. People who frequently shop at Target may benefit from the 5% discount and other perks offered by the Target RedCard. This can be especially useful for those who do a lot of household shopping, including groceries, clothing, and home goods.
- You have a lot of items shipped to your home. Target RedCard members receive free two-day shipping on many items from Target.com.
- You don’t need a credit card for purchases somewhere other than Target. While Target does approve some cardholders for a Mastercard that can be used elsewhere, the RedCard is primarily geared toward purchases within the Target ecosystem. If you’re looking for a cash back or rewards credit card that will earn from all purchases, this is not your best choice. Most people should be looking at this card as a supplement to an everyday spender.
This article was updated in May 2023 and I review it every six months. Detailed notes on all updates can be found here.
Are you the type of person who can’t make it a week without shopping at Target? If so, you may want to consider taking your relationship with the retailer to the next level in 2023 with a Target RedCard.
The Target RedCard store credit card offers a 5% discount on almost everything you buy at the retail giant both in the store and online.
But is the best rewards credit card for your everyday shopping needs?
Team Clark will try to answer that question with this card review as we explain the different Target RedCards (yes, there’s more than one) and compare this store credit card to cards from rival retailers Walmart and Amazon.
Table of Contents
- What Is the Target RedCard?
- Understanding the 4 Different Types of RedCard
- Card Specs and Perks
- Target RedCard vs. Walmart and Amazon Credit Cards
- Final Thoughts
What Is the Target RedCard?
The Target RedCard credit card is a no-annual-fee store credit card that offers 5% off purchases made at Target and on Target.com. It also provides free shipping opportunities for Target.com shoppers.
This iteration of the RedCard cannot be used for purchases anywhere but the retailer’s stores and website.
It is on Team Clark’s list of best credit cards for shopping rewards.
Understanding the 4 Different Types of RedCard
This review is solely about the Target RedCard store credit card, but the term “RedCard” does require some clarification.
Target has four different cards that carry the RedCard branding, and that can be confusing.
Let’s take a minute to clear that up:
Store Credit Card
This is the card we’re reviewing in this article.
And since it isn’t a full-fledged credit card, it also doesn’t come with things like introductory APR periods, welcome bonuses, balance transfers or the like.
Again, this is the credit card that we’re reviewing in this article.
Store Debit Card
If this card design looks frustratingly identical to the store credit card, that’s because it is.
The debit card version of the RedCard looks the same as the credit card, and it also gives you a 5% discount on purchases. But it functions differently on the back end.
This RedCard links to your personal bank account for withdrawals after each purchase. These can take 2-3 days to process, so make sure you keep sufficient funds in your bank account to cover purchases. (Money expert Clark Howard often argues against using debit cards for reasons such as this.)
You also can also use it to withdraw cash at the Target register — up to $40. (But you can do that with any debit card.)
You can apply for the debit card here.
You cannot apply for this card as a new Target credit seeker.
Instead, it must be offered to you after a successful period with the Target RedCard store credit card.
Presumably, eligibility for the Mastercard product is determined by TD Bank USA, which is the card issuer for the Target RedCard.
This card carries the benefits of the store credit card, but you can use it anywhere that takes Mastercard.
You can find the Mastercard guide to benefits for this card here.
Reloadable Debit Card
Target’s fourth option for RedCard activity is a pre-loadable Visa debit card.
This card entitles you to the 5% discount and other perks that RedCard users enjoy, but you have to load money on it to spend at the store. In most cases, Team Clark does not recommend preloaded debit cards as a means of making purchases.
Card Specs and Perks
Here’s a rundown of the benefits and rewards you can expect from this card:
Top Cardholder Benefits
- 5% Discount: This applies to most purchases made in-store at Target and on Target.com. There are some exclusions such as eye exams at Target Optical or prescriptions filled at the in-store pharmacy.
- Starbucks and Gift Card Deals: You’ll also get a 5% discount for Starbucks purchases inside Target stores as well as a 5% discount on gift cards for places like restaurants and movie theaters. If you’re an avid Target shopper, you’ve probably already browsed those cards while waiting in the checkout line.
- Free Two-Day Shipping from Target.com: In what is assuredly an attempt to compete with Amazon, Target is promising free two-day shipping for purchases made with your RedCard on thousands of items. Even if you don’t get free two-day shipping for your item, you will get free standard shipping.
- Extra Time to Return Items: RedCard users get an additional 30 days to return items purchased at Target. So if you’re weighing the usefulness of a new purchase, you may get the extra time you need to make your decision if you buy the item with your Target RedCard.
- Savings on Clearance and Deals of the Week: You’ll get a chance at an additional discount on Target’s clearance items and the Target deals of the week by purchasing with this card.
- Annual 10% Coupon: This is a discount awarded on the anniversary of your card membership, but you have to sign up for Target marketing emails to get it.
- Exclusive Deals and Offers: You can get extra coupons and deals that are exclusive to RedCard members. These offers change over time.
- Annual Fee: None
- Balance Transfer Fee: Not applicable
- Cash Advance Fee: Not applicable
- Foreign Transaction Fee: Not applicable
- Returned Payment Fee: Up to $29
- Late Payment Fee: Up to $40
Target RedCard vs. Walmart and Amazon Credit Cards
Are you trying to decide between getting the RedCard or a credit card from another of the country’s top retailers?
If you’re not married to the idea of shopping at Target all the time, both Walmart and Amazon have co-branded store credit cards that are worth investigating.
The Capital One Walmart Rewards® Card and the from Amazon are elite store rewards cards that have earned spots on a variety of Team Clark’s “best” lists, including rewards credit cards and shopping rewards.
But how do they stack up against the Target RedCard store credit card?
Here’s a handy card comparison to help you decide:
|Target RedCard Store Credit Card
|Capital One Walmart Rewards Card
|None (Prime membership required)
|Able to Use with Other Merchants
|5% off Target and Target.com purchases
|Unlimited 5% back on Amazon, Amazon Fresh and Whole Foods purchases (eligible Prime membership required). Earn 10% back or more on a rotating selection of products and categories at Amazon.com
|5% back at Walmart.com, 2% back in Walmart stores
|Store Reward Type
|Discount off purchase
|Cash back redeemable on Amazon account or via Chase portal
|Reward points redeemable for cash back, statement credit, travel and more
|None. Store card only.
|Unlimited 5% back on Chase Travel, unlimited 2% back at restaurants, gas stations and transit, unlimited 1% back on all other purchases.
|2% back on restaurants and travel, 1% back on all other purchases
|$100 Amazon Gift Card (or more) instantly upon approval exclusively for Prime members
|12 months of 5% back on in-store shopping through Walmart Pay
|Free 2-day shipping from Target.com
|Free shipping with Prime membership
|None with card. Walmart+ membership required for free 2-day shipping.
|5% off in-store Starbucks purchases and specialty gift cards
|Up to 20% off with Amazon’s exclusive Prime deals
|Noteworthy Card Perks
|Extends return period for purchased items by 30 days
|No foreign transaction fees for spending abroad
|$0 fraud liability protection if card is stolen
The Big Takeaways
So what are some of the things we can take away from this side-by-side comparison of the credit cards for three of the country’s top retailers?
- Target has the best in-store discount: All three cards offer 5% rewards online, but only Target offers that on the overwhelming majority of its in-store shopping. Walmart offers 5% on a preliminary basis through Walmart Pay, but the regular rate of 2% comes up well short of Target. And Amazon simply doesn’t have many in-person retail options in much of the country.
- Target doesn’t bring the flexibility: We’ve talked at length about the RedCard being for Target purchases only (unless you’re offered the Mastercard), but the consequences of that show up multiple times in this comparison. Not only do the Walmart and Amazon cards allow purchases at other merchants, but they also offer enhanced 2% back benefits on certain purchases and at least 1% back on all purchases.
- You can get free shipping at all three — but not equally: It’s true that all three stores offer you free shipping for online purchases that meet a certain spending threshold. But Target has the only card that offers free shipping on purchases of any size without charging a membership fee. Amazon and Walmart offer free shipping on purchases made with their premium memberships, but those memberships cost money (and don’t have anything to do with their store-branded credit cards).
Are you considering adding the Target RedCard to your wallet? Let’s review some of the major pros and cons of the card before you make your final decision:
Pros and Cons
|5% back on Target and Target.com purchases
|Cannot use at other merchants
|Free 2-day shipping on many Target.com purchases
|No welcome bonus offers
|Additional discounts on in-store Starbucks and gift card purchases
|No 0% APR spending opportunity
If you’re a frequent Target shopper, this rewards credit card is a strong candidate to add to your wallet.
The 5% discount you can earn on all your Target purchases is among the best rewards going for a no-annual-fee credit card. Plus, you’ll get free shipping on all purchases if you choose to shop virtually.
And though the RedCard limits the places you can use it, it’s still a strong option for brand-loyal Target customers.
Do you have the Target RedCard in your wallet? Tell us how you like it in the Clark.com community.
- May 2023: Updated to include reloadable debit card option. Also, verified that all offers are up-to-date. Made changes to the Amazon card comparison, as it now referred to as Prime Visa.