Writer: Brittney Mayer
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Look at any list of the top retailers in the United States and you’re practically guaranteed to see Kohl’s and Target appear in the rankings. While each store has its unique style and product offerings, both attract budget-conscious shoppers who seek value and reasonable prices on clothing, housewares, and other everyday essentials.
Since Kohl’s and Target share the mission of helping consumers save, it’s no surprise that both retailers have store credit cards to make shopping even more affordable. Either of the cards may be a reasonable option to spend less if you’re a regular shopper at their respective stores.
But if you want to know which card can snag you more savings at checkout, well, that requires a deeper look at what each card has to offer. We’ll attempt to answer some important questions below regarding the Kohl’s card vs. Target card debate so readers can decide which card (or cards) may be the best option for them.
Kohl’s Credit Card Overall Rating: 3.7/5.0
Kohl’s offers the Kohl’s Credit Card for shoppers who want a branded card that will also provide rewards on every purchase. This credit card is closed-loop, though, which means it can’t be used on purchases outside of Kohl’s — which restricts your opportunity for savings.
The Kohl’s Credit Card has a pretty straightforward rewards structure, and shoppers can earn 7.5% back on purchases in Kohl’s Rewards. You must have a Kohl’s Rewards account to earn the rewards, but you probably already have one if you’re considering this card.
Cardholders also have access to savings through exclusive perks like insider sales, special financing options, and about a dozen cardholder-only offers per year. Plus, the initial 40%-off coupon offer for opening an account can make it a lucrative card if you’re a regular Kohl’s customer.
- Rewards: Receive special Kohl’s offers all year
- Signup Bonus: One-time 40%-off coupon
- APR: 30.74%.
- Annual Fee: $0
Overall, the Kohl’s Credit Card’s deals really stand out because they can be combined with other Kohl’s Rewards offers to help frequent shoppers save on purchases.
Consumers can combine their earned discounts from the Kohl’s Credit Card with Kohl’s Cash® and other rewards to boost their savings on everything from premium kitchen appliances to women’s clothing.
Another perk to getting a Kohl’s Credit Card is how it simplifies your Kohl’s shopping experience. Because your information is already in their store database, in-store returns are streamlined and quick.
Approval Requirements & Application
While the Kohl’s Credit Card can offer value to regular shoppers, its high APR makes it a questionable choice for regular consumers. At the same time, reviewers with bad credit have reported being approved, which may make it a decent credit-builder card (provided you pay it off in full each month).
To submit an application for a Kohl’s Credit Card, visit any Kohl’s store location or apply online through the link above.
Advantages of the Kohl’s Card Over the Target Card
Those who own the Kohl’s Credit Card have a variety of options for maximizing their savings because the exclusive member coupons and discounts can be paired with rewards points offers on your Kohl’s purchases.
Given that the Target Circle™ Card doesn’t provide as many options to boost your discounts, the flexibility of the Kohl’s Credit Card may give it a leg up for those who revel in getting the best possible deal.
Target Circle™ Card Overall Rating: 4.1/5.0
If you’ve ever checked out at a Target store, there’s a good chance you’ve been asked to apply for a Target Circle™ Card by an associate. It stands out from most store cards by providing a flat 5% discount on all eligible purchases, both in-store and online.
Beyond offering a big discount on your checkout total, the Target Circle™ Card provides several secondary benefits, including insider discounts and exclusive promotions that can add up to significant savings over time. In addition, cardholders can receive early access to special events or first looks at new products.
- Rewards: Save 5% on qualifying purchases at checkout
- Signup Bonus: None
- APR: 29.45%
- Annual Fee: $0
Yet, while it may appear to be an enticing deal to any budget-conscious spender, the card’s high 29.45% variable APR is a pretty steep interest rate if you carry a high balance.
The Target Circle™ Card is a closed-loop card, which means that it can only be used for purchases made at any Target store location or online. This shopping restriction can prevent your ability to save especially if you aren’t a regular Target shopper.
Furthermore, the card’s 5% discount can’t be applied to all products. Prescriptions and over-the-counter pharmacy items are excluded from this benefit. Gift cards, select restaurant merchants, and Target Optical™ eye exams are also not eligible for the discount.
Moreover, any additional fees, such as gift wrapping, shipping, or protection programs on purchases, will not be discounted at checkout.
Approval Requirements & Application
Even with a bad credit score, the Target Circle™ Card may still be a viable option. According to reviews, consumers with FICO credit scores as low as 580 have been accepted. While the card’s high APR means carrying a balance is bad news, cardholders who maintain on-time payments and regularly pay in full may use it to rebuild their credit.
You can apply for a Target Circle™ Card at any Target location, or you can fill out an online application via the link above.
Advantages of the Target Card Over the Kohl’s Card
Most consumers will likely find that saving with the Target Circle™ Card requires less work than with the Kohl’s Credit Card. Unlike the multiple rewards programs Kohl’s must navigate, shoppers who use a Target Circle™ Card receive a straightforward 5% discount on every sale.
For those looking to build credit, Target’s offerings can better fit into an everyday budget, and many consumers have reported success improving their credit with the Target Circle™ Card.
Better Cards to Use at Kohl’s and Target
While the Kohl’s Credit Card and the Target Circle™ Card each have their money-saving strengths, they do share two common weaknesses: closed-loop restrictions and high APRs. In other words, these store cards may have their unique perks and exclusive savings, but they also have strict limits on how they — and their rewards — can be used.
Unless you frequently make shopping trips to either store, you’re likely better off with an open-loop rewards credit card that can offer savings anywhere you spend — or, at least, a much better APR. And, if you still want to find ways to save at Kohl’s or Target, you can easily search online for the latest coupons at both stores for the next time you shop.
Cash Back
Exclusive discounts or a percentage off your purchase is useful if you’re a brand loyalist who can make the most of their value. But, with a rewards credit card that provides cash back on every purchase, you can likely rack up even more savings in the long run. And the APR you’re offered will likely be better than what you’ll get with a store card.
Additional Disclosure: Bank of America is a CardRates advertiser.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Additional Disclosure: Citi is a CardRates advertiser.
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers. 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 you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem cash back for any amount. No annual fee.
- Get a 0% intro APR for 15 months on purchases and balance transfers. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
+See More Cash Back Credit Cards
0% APR
Huge downsides of both the Kohl’s Credit Card and the Target Circle™ Card are their high APRs. Small balances, if left unpaid, can easily spiral out of control as interest fees start to multiply.
With a good 0% APR credit card offer, you can have a year or more without the stress of having to pay off your card at the end of the billing cycle to avoid interest. And better yet, many of these card offers extend to balance transfers that can help with existing balances (though balance transfer fees may apply).
Additional Disclosure: Bank of America is a CardRates advertiser.
- Earn 20,000 bonus Points after spending $1,000 in the first 3 months of account opening.
- 0% Intro APR on balance transfers and purchases for 15 months; after that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Earn 3 ThankYou® Points for each $1 spent in an eligible Self-Select Category of your choice (Fitness Clubs, Select Streaming Services, Live Entertainment, Cosmetic Stores/Barber Shops/Hair Salons, or Pet Supply Stores). Choose your eligible Self-Select Category on Citi Online or by calling customer service. The default Self-Select Category is Select Streaming Services.
- Earn 5 ThankYou® Points for each $1 spent on Hotels, Car Rentals and Attractions booked on Citi Travel® via cititravel.com; earn 3 ThankYou Points for each $1 spent at Supermarkets, on Select Transit purchases, and at Gas & EV Charging Stations.
- Earn 2 ThankYou® Points for each $1 spent at Restaurants; earn 1 ThankYou® Point for each $1 spent on All Other Purchases.
- No Annual Fee
Additional Disclosure: Citi is a CardRates advertiser.
Travel Rewards
Finding ways to lower the cost of an upcoming trip can require a lot of digital legwork. But, with a travel rewards credit card, you can stash away savings year-round — and unleash them when booking airfare or hotel accommodations.
Even better, these open-loop cards can earn rewards anywhere they’re accepted — including popular retailers like Kohl’s and Target.
+See More Travel Rewards Credit Cards
The “Better” Card Will Depend on How You Use it
It’s difficult to directly compare the store cards at Kohl’s and Target because their rewards are so different. Both help cardholders save, just in different ways.
Budget shoppers who want to strategically boost their savings at checkout may find the Kohl’s Credit Card particularly useful. For consumers who want a big percentage off when shopping for everyday essentials may have their needs better met by the Target Circle™ Card.
Regardless of which card’s savings style you prefer, however, your purchasing power is limited with both cards due to their closed-loop restrictions. And both cards have less-than-ideal APRs that can mean high interest fees.
One of our top-rated open-loop credit cards may prove the better option for most consumers, as these all-purpose cards can help users save on purchases beyond those made at Target or Kohl’s.
Advertiser Disclosure
CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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