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.

• 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.

• 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 25.90% (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.

Compare it to the Discover it^® Cash Back

 

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, and gas stations, 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 2023 Discover cashback calendar includes a variety of merchants, including grocery stores, drug stores and select streaming services.

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 15.74% - 26.74% 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 25.90% (variable) APR.

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.