How Does LendingTree Get Paid?
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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

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Target REDcard™ Credit Card Review

Target REDcard™ Credit Card Review

Rewards rate
5% off at Target in-store and online
Annual fee
$0
Additional benefits
Free shipping on most Target.com items
Edited by
Julie Sherrier
Reviewed by
Tracy Brackman
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Who is the Target REDcard™ Credit Card best for?

If you regularly shop at Target or Target.com, then you know how easy it is to spend a large amount on toiletries, cleaning supplies, household décor, clothing and groceries there. To help offset those costs, you may want to consider the Target REDcard™ Credit Card.

The $0 annual fee card offers 5% off at Target in-store and online. Plus, cardholders have access to exclusive perks, such as free two-day shipping and extended returns.

We highlight the pros and cons of the Target REDcard™ Credit Card, and show how it compares to the Discover it® Cash Back, which offers a generous cashback rate in a variety of categories that rotate quarterly, like grocery stores, Amazon.com and Target.com.

Target REDcard™ Credit Card overview

    • 5% discount at Target and Target.com
    • $0 annual fee
    • 23.15% variable APR
  • Exclusive access to special items and offers
  • 5% discount on clearance prices
  • 5% off at any in-store Starbucks location
  • 5% off specialty gift cards for travel, restaurants and more
  • An estimated $500 in savings on baby supplies

Intro Purchase APR

N/A

Regular Purchase APR

23.15% (variable)

Intro BT APR

N/A

Regular BT APR

N/A

Annual Fee

$0

Cash Advance Fee

N/A

Foreign Transaction Fee

N/A

Balance Transfer Fee

N/A

Pros and cons

Pros

  • 5% discount on Target and Target.com purchases
  • Annual fee
  • Free two-day shipping
  • Extended returns

Cons

  • Can only be used at Target
  • High purchase APR
  • No 0% intro APR
  • Discount does not apply to all Target purchases

What we like about the Target REDcard™ Credit Card

  • 5% discount on Target and Target.com purchases

    Target REDcard™ Credit Card holders receive 5% off at Target in-store and online. So, for example, if you spend $2,400 at Target in a year, you could receive $120 in savings on those purchases.

    Because the discount is automatically deducted when you check out, there’s no need to worry about redeeming rewards. Additionally, the discount applies to clearance items, purchases at in-store Starbucks locations, subscription deliveries, specialty gift cards and same-day delivery orders through Shipt.

  • Annual fee

    The Target REDcard™ Credit Card comes with a $0 annual fee.

  • Free two-day shipping

    When you use your Target REDcard™ Credit Card to shop at Target.com, you will receive free two-day shipping on most items. All other Target.com purchases will receive free standard shipping.

  • Extended returns

    Target REDcard™ Credit Card holders receive 30 additional days to return a purchase beyond the standard 90 days already offered by Target. Note, this does not apply to Target Optical purchases, non-returnable items or contract mobile phones.

What to watch out for with the Target REDcard™ Credit Card

  • Can only be used at Target

    Unlike traditional credit cards, which allow you to use your card anywhere, you can only use the Target REDcard™ Credit Card at Target stores and Target.com.

  • High purchase APR

    If you carry a balance on your Target REDcard™ Credit Card from month to month, you will be subject to a high APR of 23.15% (variable) on purchases. That said, store credit cards typically charge higher interest rates than traditional credit cards.

    If you want to receive 5% off at Target and Target.com without risking racking up high-interest debt, you may want to consider the Target RedCard Debit Card. The debit card offers the same perks as the Target REDcard™ Credit Card, but since it’s linked to an existing checking account, funds will automatically be withdrawn when you make a purchase, instead of applied toward a balance. The debit card also allows you to withdraw up to $40 at checkout.

  • No 0% intro APR on purchases

    If you want to finance a large purchase, such as a TV or furniture, and pay it off over time, you may be better off with a card that doesn’t charge interest for an extended period of time, such as the Discover it® Cash Back (more details below).

  • Discount does not apply to all Target purchases

    The 5% discount doesn’t apply to prescriptions, Target Optical eye exams and protection plans, Target gift cards and prepaid cards, certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen, Shipt membership fees, alcohol purchases in Indiana, gift wrap and shipping and handling charges on Target.com purchases or wireless protection program purchases.

Alternate card to the Target REDcard™ Credit Card

Compare it to the Discover it® Cash Back

| Disclosures
Discover it® Cash Back
Discover it® Cash Back
on Discover's secure site
0% Intro APR for 15 months
13.49% - 24.49% Variable APR
$0
5% cash back on everyday purchases at different places each quarter like
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • NEW! Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
  • Every $1 you earn in cash back is $1 you can redeem.
  • NEW Intro APR: Get a 0% intro APR for 15 months on purchases. Then 13.49% to 24.49% Standard Variable Purchase APR applies, based on credit worthiness.
  • No annual fee.
  • Click "Apply Now" to see terms and conditions.
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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

 

If you want the ability to earn cash back on every purchase you make – no matter where you shop – you may want to consider the Discover it® Cash Back. The $0 annual fee card offers the following rewards rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.

Cash back can be redeemed for gift cards, charitable donations, credit to your Discover account, electronic deposit into any account you designate or merchandise.

The 2022 Discover cashback calendar includes a variety of merchants, including grocery stores, gas stations, gym memberships and restaurants. In fact, during the second quarter of 2022, Discover will offer the bonus rate at Target.

If you max out $1,500 spend cap each quarter, you can earn $300 cash back at the end of the year. Once you factor in the Discover cashback match bonus, that amount jumps to $600.

Additionally, the Discover it® Cash Back card offers an intro APR of 0% Intro APR for 15 months on purchases, then an 13.49% - 24.49% Variable APR applies. By contrast, if you plan to carry a balance on your Target REDcard™ Credit Card , you will be subject to interest charges at a rate of 23.15% (variable) APR.

Compare the Discover it® Cash Back to similar cards

Comparison of four different credit cards
Target REDcard™ Credit Card Discover it<sup>®</sup> Cash Back Amazon Prime Rewards Visa Signature Card Capital One® Walmart Rewards® Card
Target REDcard™ Credit Card Discover it® Cash Back Amazon Prime Rewards Visa Signature Card Capital One® Walmart Rewards® Card
Read Review
Apply Now
on Discover's secure site
Read Review
Read Review
Welcome Offer
N/A Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. Get a $200 Amazon Gift Card instantly upon approval. 5% cash back in Walmart stores for the first 12 months after approval when you use your card with Walmart Pay
Rewards Rate
5% off at Target in-store and online 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants, gas stations and drugstores and 1% back on all other purchases. 5% cash back at Walmart.com, including pickup and delivery. 2% back at Walmart stores and fuel stations, at restaurants and on travel. 1% back everywhere else Mastercard® is accepted
Annual Fee
$0 $0 $0 $0
Intro Purchase APR
N/A 0% Intro APR for 15 months N/A N/A
Regular APR
23.15% (variable) 13.49% - 24.49% Variable APR 15.74% to 23.74% variable 17.99%, 23.24% or 26.99% variable
Recommended Credit
Good Excellent/Good N/A Excellent/Good
Card Details
Target REDcard™ Credit Card Discover it® Cash Back Amazon Prime Rewards Visa Signature Card Capital One® Walmart Rewards® Card

Is the Target card right for you?

If you frequently shop at Target or Target.com, the Target REDcard™ Credit Card could be a great fit. In addition to saving on most Target purchases and a $0 annual fee, cardholders receive free two-day shipping and an extra 30 days for returns.

But if you want more flexibility in where you can earn rewards, the Discover it® Cash Back may be a better fit, since it offers cash back on every purchase. Just keep in mind that, while the card includes Target.com as a bonus category during the fourth quarter of 2021, you can only earn the elevated rate for online purchases, and not in store.