The Ultimate Guide to Credit Cards
Sunday, January 29, 2023

Target Credit Card Review (2023)

Target Credit Card Review ([current_year])

Store Credit Card

Ray FitzGerald

Written by: Eric Bank

Eric Bank

Eric Bank has been covering business and financial topics since 1985, specializing in taking complex subject matters and explaining them in simple terms for consumer audiences. In addition to his work on, Eric has appeared regularly on, eHow, WiseBread, The Nest,, Zacks, Chron and dozens of other outlets. A former software engineer, Eric holds an M.B.A. from New York University and an M.S. in finance from DePaul University.

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Edited by: Ashley Dull

Ashley Dull

With more than a decade of experience as a content manager and marketer, Ashley has specialized in finance coverage since 2015. 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 campaigns. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among others.

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Reviewed by: Adam West

Adam West

Adam corresponds with finance experts to publish industry news coverage related to helping consumers achieve greater financial literacy and improved credit. He has more than 12 years of storytelling, editing, and design experience in print and online journalism and is most knowledgeable in the areas of credit scores, financial products and services, and the banking industry.

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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. However, if you're thinking of applying for the card, be prepared to pay your balances in full each month to avoid the large APR.

Target Card Overall Rating: 4.1/5.0

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 23.9% 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: 23.90% as of Jul 2019
  • Annual Fee: $0
  • Rewards: Save 5% at Target every day
★★★★ 4.1/5.0

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 recently extended to newer 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.

Another thing to remember is that the Target REDcard can only be used in Target stores or on the company’s website. The closed-loop nature of the card limits its abilities to save consumers on their overall purchasing power.

Approval Requirements & Application

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.

Better Cards to Use at Target

Getting a percentage off of your purchase is a 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 of your sale 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.





  • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
  • Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
  • After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
  • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.24% - 27.99%.
  • No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
0% Intro APR on Balance Transfers 15 months
19.24% - 27.99% Variable

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. Factor in the ability to use these cards anywhere, and it's a deal that’s hard to beat.

BankAmericard® credit card Review

at Bank Of America'ssecure website





  • New longer intro period! 0% Introductory APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 16.24% - 26.24% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers.
  • No annual fee.
  • No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply.
  • Access your FICO® Score for free within Online Banking or your Mobile Banking app.
  • 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 21 billing cycles for purchases
0% Intro APR for 21 billing cycles for any balance transfers made in the first 60 days
16.24% - 26.24% Variable APR on purchases and balance transfers

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





  • UNLIMITED BONUS: Only 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 - with no annual fee.
  • Redeem Miles to pay any part of your monthly bill, including your minimum payment.
  • Turn Miles into cash in any amount, any time. Or redeem as a statement credit for travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more with no blackout dates. However you redeem, Miles keep the same value. And Miles never expire.
  • 0% intro APR for 15 months on purchases. Then 16.24% to 27.24% Standard Variable Purchase APR will apply.
  • Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR for 15 months
0% Intro APR for 15 months
16.24% - 27.24% Variable APR

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 drawbacks come through the high APR, which negates any discounts if you carry a balance, and the closed-loop limitations that make 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.

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.
A review from 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. —

★★★★ 4/5.0
A review from 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. —

A review from 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. —

★★★ 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 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 (including, for example, the order in which they appear). 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.