The Ultimate Guide to Credit Cards
Tuesday, March 19, 2024

Target Credit Card Review (Feb. 2024)

Target Credit Card Review
Brittney Mayer

Written by: Brittney Mayer

Brittney Mayer
Brittney Mayer

Brittney is a Credit Strategist and Finance Expert who has spent years honing her knowledge of the credit industry both personally and professionally. Brittney applies her more than a decade of research experience to crafting in-depth consumer guides designed to help CardRates readers make better, more informed financial decisions.

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Edited by: Lillian Guevara-Castro

Lillian Guevara-Castro
Lillian Guevara-Castro

Lillian Guevara-Castro brings more than 30 years of editing and journalism experience to the CardRates team. She has written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times, and she previously served as an adjunct journalism instructor at the University of Florida. Today, Lillian edits all CardRates content for clarity, accuracy, and reader engagement.

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Reviewed by: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Advertiser Disclosure

That red and white Target logo is well known throughout America, where millions of customers shop each year for bargains. Most don't realize that the company's history stretches back more than 100 years, to when it started as the Dayton Dry Goods Company in 1902. Inspired by the harsh winters in its main base of Minneapolis, Dayton blazed a retail trail in 1956 with a two-story indoor shopping center that became the world's first fully enclosed mall.

While the modern company has a new name, Target remained on the cutting edge of style and bargains, offering exclusive items for the home and deals you won't find at any other retailer. And its company-branded RedCard credit card grants cardholders 5% off of most purchases made in-store or online. Even its APR is competitive with open-loop cards from big banks, making this card a solid addition to any Target shopper's wallet.

Better Cards to Use at Target

Getting a percentage off of your purchase is the big draw toward the Target RedCard, especially for consumers that spend a lot of their budget there. But if your shopping trips often take you to other stores, you won’t be able to use your card all day long. You can get just as much savings with a traditional cash back credit card and the use of the latest Target coupons to cover most purchasing needs.

Cardholders report multiple issues with customer service, ranging from locked up cards to delays in processing payments. Many issues seem centered around the online portal for accessing and scheduling payments.

Cash Back

Getting a percentage off your purchases is great, but through many rewards cards, including the one suggested below, you can get similar amounts of cash back and may even qualify for a lower APR. On top of those perks, your card — and rewards — can be used anywhere you shop and not just at Target.

Bank of America® Customized Cash Rewards credit card Review

at Bank Of America'ssecure website

CASH BACK RATING

★★★★★

4.9

OVERALL RATING

  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
  • Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishing purchases.
  • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
  • No annual fee and cash rewards don’t expire as long as your account remains open.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • Contactless Cards - The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%)
18.24% - 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

0% APR

If Target is the more high-end of department store choices, the RedCard interest rate would belong on the shelves of that other store. If you're a thrifty shopper, and most Target regulars are, you may save money over the long haul with a lower-APR credit card option.

Bank of America® Customized Cash Rewards credit card Review

at Bank Of America'ssecure website

0% INTRO APR RATING

★★★★★

4.8

OVERALL RATING

  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
  • Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishing purchases.
  • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
  • No annual fee and cash rewards don’t expire as long as your account remains open.
  • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
  • Contactless Cards - The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 billing cycles for purchases
0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%)
18.24% - 28.24% Variable APR on purchases and balance transfers
$0
Excellent/Good

Additional Disclosure: Bank of America is a CardRates advertiser.

Travel Rewards

If you're looking to save money, why not take some of those savings you're stashing away and take a trip? With a travel rewards credit card, you can earn miles, hotel stays, or other perks that'll have you on your way in no time. Not only will you earn travel benefits for your Target purchases (including those like pharmacy charges that aren't covered by the RedCard discount), but you'll accrue rewards for all of your purchases, everywhere.

Discover it® Miles Review

at Discover Card'ssecure website

AIR MILES RATING

★★★★★

4.9

OVERALL RATING

  • UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
  • Automatically earn unlimited 1.5x Miles on every dollar of every purchase
  • No annual fee
  • Turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more.
  • 0% intro APR for 15 months on purchases. Then 17.24% - 28.24% Standard Variable Purchase APR will apply.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • Terms and conditions apply.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 months
0% Intro APR for 15 months
17.24% - 28.24% Variable APR
$0
Excellent/Good

While Target's RedCard isn't a bad option for regular shoppers at the store — you can never go wrong with instant savings at the register — the main drawback is the closed-loop limitation of the non-Mastercard version that makes it only usable at Target. If you're the type that can pay off your balance in full each month, you'll likely qualify for a card with a much better rate and extensive perks that cover your purchases wherever you shop.

Target Card Overall Rating: 4.5/5.0

If you're a regular Target shopper, you've likely been asked by a cashier to apply for the store's RedCard. It's an appealing alternative to many store cards, as it offers a 5% off your sale at the register, as well as free shipping for online orders and an extended return period. While those deals are certainly tempting, the APR on the card takes away most of the potential savings if you're unable to pay your balance in full each month.

While the Target RedCard doesn't offer rewards in terms of points or other accruing perks, the instant gratification of reducing the price of your purchase gets it close to the finish line.

Target Credit Card

  • APR: 28.15% as of Feb 2024
  • Annual Fee: $0
  • Rewards: Save 5% at Target every day
★★★★★ 4.5/5.0

Something to keep in mind when using your Target RedCard is the 5% discounts do not apply to prescriptions or over-the-counter items located behind the pharmacy counter. It also does not cover Target Optical™ eye exams, gift card purchases, or certain restaurant merchants in store (though the discount was extended to stores with a Starbucks). Gift wrap, shipping and handling charges, or protection programs on purchases are also ineligible. If you're paying for only part of your purchase with the card, only the portion charged will be eligible for the discount.

Approval Requirements & Application

Target offers two versions of its credit card, the closed-loop version for applicants with fair credit, and the Mastercard version for people with good credit. Consumers with credit scores as low as 580 report being approved for credit limits starting at $250. The card's accepting nature makes for a solid choice for anyone rebuilding their credit or establishing a new profile. Some reports show credit limits being increased up to three times each year with regular usage and payments.

What Others Say About the Target Credit Card

Despite the potential for in-store savings, many cardholders report having extensive problems with their REDcard being locked regularly due to security flags. Other issues revolve around the internet portal where cardholders can manage their cards and payments. If you're a REDcard carrier, be sure to schedule your payments on time, as payment delays are another common complaint.

WalletHub.com
A review from WalletHub.com says:

I really love my Target credit card. The credit card offers all the benefits and ease of use as any credit card I have ever had, but it also has the added incentive of getting a 5% discount at Target stores and online. And any issue I have with my account or purchases is quickly and professionally resolved with their great customer service. I highly recommend this credit card. — WalletHub.com

★★★★ 4/5.0
ConnsumerAffairs.com
A review from ConnsumerAffairs.com says:

The website appears broken to me. I am always locked out of my online account. Supposedly I need their security, but I do wonder if it isn't deliberate. I Spent over an hour two days ago trying to reach someone to unlock my account. There's no clear option on the menu. Twice, a person I reached put me on hold and call cut out. Now I'm a day late so it hurts my otherwise excellent credit. — ConnsumerAffairs.com

1/5.0
CreditKarma.com
A review from CreditKarma.com says:

Fairly easy to get one with poor credit, you will get only a 200 or 300 credit line though. Keep your income updated with the website and if it gets higher you will see your limit get raised pretty quickly. I had Target raise my limit 3 times in a year. After about 2 years they may offer you a free upgrade to the Mastercard, which can be used anywhere. — CreditKarma.com

★★★ 3/5.0

Is the Target Card Right for You?

For more than 100 years, Target has provided consumers with the opportunity to purchase the items they need and want at discounted prices. The ability to save 5% off of your purchase with the use of a REDcard credit card is an added attraction, but the high APR and limited usability detract from the potential savings.

Instead of a one-trick wonder taking up space in their wallets, consumers are better served buying that new blouse or storage container with an everyday-use card with perks like a lower APR, cash back rewards, or travel benefits.

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.