Everything You Should Know About The Target RedCard - Savvy

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We enjoy a good Target money-saving tip! And among the best is the Target RedCard. Along with a few other pretty sweet perks, you can use this card to save 5% on every single Target transaction.

However, there are a few things you should be aware of before applying for a Target RedCard. especially because you have several choices.

Be sure to bookmark JoinSavvy.com so you won't miss any of our Target offers before we begin.


A Quick Look at the Target RedCard

Type of REDCard APR Fees
Target REDCard Debit Card N/A Potential overdraft fees and return payment fees
Target REDCard Credit Card 22.90% APR Late payment fee of $40
Returned payment fee of $29


What is Target RedCard?

The Target RedCard debit card and the Target RedCard credit card are the two different kinds of Target RedCards. While they both provide the same perks and advantages, they function significantly differently in practice.


Target RedCard debit card

With the exception of being restricted to usage at Target, the Target REDCard debit card functions much like the debit card you use with your bank account. Before making purchases, you must connect this card to your checking account.

The funds will then be automatically deducted from your linked checking account whenever you make a purchase.

There are no yearly fees, but you risk owing money to your bank in overdraft fees if you overspend and overdraw your checking account. Target may charge you return payment costs in the future, but they don't state up front what they would be for the debit card alternative.

Only the debit card option enables you to withdraw cash at the register without incurring any fees. Up to $40 in cash can be withdrawn, and the funds will be deducted from your checking account.


Target RedCard credit card?

The Target RedCard credit card is a lending product that can only be used at Target. You must pay off any purchases made with the card in full within 25 days of the payment cycle's end. Otherwise, your balance will be subject to a staggering APR of 22.90%.

If you really must have the credit card, be sure to always pay the entire debt each month. Otherwise, all of the savings you've accrued with your RedCard advantages would be lost.

Your credit score may suffer slightly if you apply for a credit card. However, after a few months of on-time payments, some consumers see that this number has increased again. Because increasing your credit limit can often assist raise your credit score, even when new credit inquiries are shown negatively on your credit report – provided you make your payments on time.

Just because you apply doesn't mean you'll automatically be approved for a Target REDcard credit card. You will need income and a respectable debt-to-income ratio in addition to the store's minimum necessary credit score if you want to get authorized. If you apply and are denied, that ding will appear on your credit report.


What does a RedCard do at Target?

All of these RedCard in-store perks are available whether you have a debit or credit card:


RedCard Rewards & Perks

Get 5% off the majority of your Target purchases.

This is the biggest perk! Y ou can receive 5% off of purchases at Target stores and on Target.com when you pay with your REDCard. These discounts can build up over time, whether you're stocking up on household essentials or treating yourself to a Starbucks.

However, there are a few exceptions you need to be aware of. The 5% discount does not apply to:

  • Prescriptions
  • Target gift cards and prepaid cards
  • GameOn gift cards
  • Gift of College gift cards
  • Lottery gift cards
  • Shipt membership fees
  • Wireless protection program purchases
  • Deposits on mobile phones
  • Gift wrapping services
  • Taxes and shipping charges
  • Target Optical eye exams and protection plans.

However, you do get 5% off your eyeglasses and contact lenses. Yes, the 5% discount does really apply to clearance products. It even applies to speciality gift cards, so buying Disney gift cards at Target will effectively save you 5% on your Disney visit.

With a few unusual exceptions, such as the state of Indiana, you can also get 5% off alcohol in the majority of states.


Get an additional 30 days for returns.

The normal return period at Target is 90 days. However, the return window expands to 120 days if you pay using your RedCard.

There are also a few exclusions to this benefit:

  • Purchases of some electronic items
  • Target Optical purchases
  • Contract mobile phones
  • All non-returnable Target items


Get two-day shipping for free.

Many orders placed on Target.com with your RedCard will include free two-day shipping. Almost every order will include free standard shipping.

There could or might not be a minimum order quantity, depending on where you live and what you're buying. There used to be a $35 minimum order requirement for all orders, but there aren't any globally applicable regulations that are so exact at the moment.

Please be aware that there may be a delivery charge if you order through Shipt.


Extra RedCard-only discounts are available.

The "exclusive extras" that RedCard holders are entitled to are essentially just freebies and additional discounts that are not open to the general public.

These discounts aren't released on a set schedule by Target, and depending on your purchasing history and area, you might not be able to access the same ones as your friends.


More questions about Target RedCard

How to apply for the Target RedCard?

Honestly, a RedCard application might be presented to you at the cash register. Make sure you know whether you are applying for a debit card or credit card if this occurs and you give your consent. While a debit card application shouldn't, a credit card application may have an impact on your credit record.

You can apply online for either the debit card or credit card option if you wish to be more proactive.

You will require basic identifying information, such as your name, date of birth, and address, in order to apply.

You must include information about the bank account you want to attach to your RedCard when applying for the debit card.

In addition to agreeing to a hard pull on your credit, you will also need to give income information for the credit card.


Is a Target RedCard free?

The three REDcard products from Target—a debit card, two credit cards—each come with a $0 annual fee and the same 5% discount.


Can I use my Target RedCard anywhere?

Only Target stores and the company's website accept the Target RedCard credit card. The Target credit card with the Mastercard logo is accepted wherever that accepts credit cards. The 5% discount option, however, is only valid for purchases made at Target's physical stores and online.


What is Target credit card limit?

Once your application has been approved, the first Target Credit Card credit limit will be determined by your overall creditworthiness. The Target RedCard's credit limit often ranges from $200 to $2,500 or more. Credit limits often start off small, but those who consistently make their payments on time may see significant increases in their credit limits.

However, since the issuer withholds this information, there is no foolproof way to discover your credit limit in advance.

It is worth mentioning that accounts are examined after 12 months for automatic credit limit increases. These are based on soft inquiries into your credit report, so your credit score won't be impacted. If your income has increased and you've updated it via your online profile, your chances of getting a higher credit limit are better.


Making a payment on your Target Credit Card is as simple as going online or calling (888) 755-5856. As an alternative, you can send a check or money order to Target by mail.

How to pay your Target Credit Card bill:

  • Online: Sign in to your Target account and select "Pay Now" from the menu.
  • By phone: To make a payment, dial (888) 755-5856 and follow the on-screen instructions. You can also ask to talk with a Target guest services person.
  • In a Target store: At any Target location, you can also make a credit card payment in person. Bring your billing statement or Target Credit Card to the Guest Service Counter so the employee can search up your account number.
  • By mail: If you'd rather pay your Target Credit Card by mail, send a check and your payment coupon to:
    Target Card Services
    P.O. Box 660170
    Dallas, TX 75266-0170

Bear in mind that payments sent via mail take the longest to post. So, send your payments at least 5-7 days before the due date to prevent being late.


A Target credit card could aid in improving your credit if you make consistent, on-time payments on your Target REDcard and monitor your overall credit utilization ratio.


Is the Target RedCard right for you?

You can only use this card at Target. Because of the benefits, it can be a wonderful choice for you if you purchase there frequently. We adore it since it provides frequent shoppers with savings.

Simply because there are less possible drawbacks, we'd advise debit cards over credit cards. There are no fees as long as your checking account is not overdrawn. If you use the credit card, you run the risk of accruing penalties, paying exorbitant interest, and even having your credit report tarnished if you skip a payment or pay it late.

Another reason we prefer the debit option over the credit option is that Target is a retailer where it's simple to overfill your basket. If you're using credit instead of debit, the consequences could be more severe if you have any kind of shopping addiction or simply make one huge excursion where your eyes are bigger than your pocketbook.

That being stated, not everyone should avoid using credit cards. The Target RedCard credit card is only one of many options available to you if you're disciplined with money and want to have a solid credit history.


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