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Target RedCard Credit Card Review – Everything You Need to Know

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It happens nearly every time you step up to the checkout: the salesperson asks if you’d like to save 10%, 15%, or 20% off your purchase by applying for a store credit card.

Unfortunately, many store-branded credit cards often have high interest rates and low minimum payments, offsetting the discount in the end. That’s why your answer should usually be “No, thanks.”

However, The Target RedCard™ offers several benefits that may appeal to responsible cardholders who regularly shop the retail giant.

The Target RedCard at a Glance

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Applying for the Target RedCard

You can apply for the Target RedCard online or by mail. With the online application, you simply fill out a few forms and submit your information. You may be approved instantly, or your application may require further review. It can take up to 7-10 days to find out if you have been approved for the card.

Potential applicants should have a fair credit history. In general, it looks like a FICO credit score of 615 or higher is recommended but not required.

Other things to note before applying for the Target RedCard:

  • You must be at least 18 years old and have a U.S. address to apply
  • To apply, you’ll need your social security number and one of the following: driver’s license, state ID, or military ID

RedCard Rewards

The Target RedCard is unique in that it gives shoppers a 5% savings on almost everything bought with the card* from Target and Target.com including groceries, apparel, home goods, and more. The 5% discount even applies to purchases at Starbucks located within Target stores.

Unlike many cash-back credit cards, the Target RedCard applies your discount automatically — no points to earn or rebates to wait weeks to receive. And there’s no annual fee! All Target RedCard are chip-and-PIN cards for higher security.

A special note about pharmacy purchases: Your 5% store discount does not apply to pharmacy purchases. Cardholders used to earn discounts by filling a certain number of prescriptions and paying for them with the RedCard. However, CVS now runs all Target pharmacies, and this specific RedCard reward benefit is no longer in place.

Stacking Discounts: Smart shoppers make an effort to stack discounts and receive additional savings on top of the 5% RedCard discount. For instance, when you sign up to have essentials delivered as part of the Target subscription service, you save 5% for using the service plus 5% for using the card — a total discount of 10%.

Also, look for Target Circle discounts of 5% to 50% off merchandise on top of the 5% RedCard discount. Take note, though, that the 5% RedCard discount pertains to the amount spent on the card after all other discounts are applied.

Other Target RedCard Benefits/Features

There are a number of additional Target RedCard features you can enjoy:

  • No annual fee
  • FREE two-day delivery on most purchases made with your RedCard at Target.com
  • Target adds 30 days onto the regular 90-day return policy (so 120 days to return) when you use your RedCard
  • Early access to special events, products, and promotions like seasonal sales (think Black Friday, Cyber Monday, etc.)
  • “Exclusive extras” like special items, gifts, and cardholder anniversary offers (subject to restrictions)
  • No foreign transaction fees: Shoppers can make purchases at international Target locations without racking up additional charges. (There are lots of other cards that don’t charge foreign transaction fees either)

Target RedCard Fees & Drawbacks

The biggest drawback of using a Target RedCard is that it is only accepted at Target stores and Target.com. Of course, if you already do most of your shopping at Target, that’s not a big deal.

APR: Another caveat is the high APR associated with the card. At 23.90% (variable), this can be extremely dangerous for those who carry a balance. The interest and fees can quickly outweigh the 5% savings.

The Target RedCard usually comes with a pretty low minimum payment that can be paid back over a long period. This means you could rack up a ton of charges on the card, but incur hefty fees due to the high APR since you’re only required to pay off a little at a time.

Late Fee: Target states users will pay a late fee of $24 when any amount due remains unpaid after the payment due date. All subsequent late fees will be $38 until you reach the minimum required payment by the due date for 6 consecutive billing periods.

Returned Payment Fee: Users are charged $27 each time a check or other payment order is not honored by your banking institution.

Are the fees on the Target RedCard worth it? If you’re a responsible cardholder, then yes. If you pay the card in full every month (avoiding the high APR) and make your payments on time (avoiding the late fees), then the card can provide significant value — especially when you consider there is no annual fee.

A Possible Concern: It’s important to note that when you utilize a Target RedCard of any kind, you’re authorizing the company to gather information about your purchases. In turn, Target may then utilize this data to send you coupons and advertisements specifically geared to your spending habits (thus enticing you to spend more at the store).

While Target isn’t the only company with these practices, they’re a major player in the data collection game with illustrious techniques that set the company apart in the retail sector. In other words…they’re very good at this. Whether or not you’re concerned is really up to your personal privacy standards.

Other Rewards Based Cards (Our Recommendations)

The Target card is a great option when making purchases at a Target store, but — the card is not accepted outside of Target.

We recommend also using a card that’ll give you cash-back and rewards when making purchases at other stores, restaurants, online – or practically anywhere.

In other words, don’t just get rewards at Target – earn rewards on ANY purchase!

Blue Cash Everyday® Card from American ExpressTerms Apply / Rates & Fees
U.P. Rating 
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

This cash-back card offers a capped 3% at U.S. supermarkets, 3% at U.S. gas stations, and 3% on U.S. online retail purchases!

Learn More(at Amex's secure site)

Apply With Confidence

Know if you're approved with no credit score impact

If you're approved and accept this Card, your credit score may be impacted.

This cash-back card offers a capped 3% at U.S. supermarkets, 3% at U.S. gas stations, and 3% on U.S. online retail purchases!
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
$200
$0
19.24%-29.99% Variable,0% on purchases for 15 months
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)

When it comes to cash-back credit cards, there are dozens of options to choose from. So what sets the Blue Cash Everyday® Card from American Express apart from the rest?

This card is excellent at earning cash-back on your everyday purchases at U.S. supermarkets, U.S. gas stations, and on U.S. online retail purchases. So if you regularly spend money on everyday purchases, this could be the perfect card to add to your wallet.

Pros
  • 3% back on purchases at U.S. supermarkets on up to $6,000 in purchases each year, then 1% back after.
  • 3% back on purchases at U.S. gas stations on up to $6,000 in purchases each year, then 1% back after.
  • 3% back on purchases on online retail purchases on up to $6,000 in purchases each year, then 1% back after.
Cons
    • Rewards are not flexible and can only be redeemed for cash-back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
  • No Annual Fee.
  • Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.24% to 29.99% variable APR.
  • 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
  • 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
  • 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
  • Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
  • Enjoy up to $15 back per month when you purchase a Home Chef meal kit subscription (subject to auto renewal) with your enrolled Blue Cash Everyday® Card.
  • Terms Apply.
Financial Snapshot
  • APR: 19.24%-29.99% Variable,0% on purchases for 15 months
  • Foreign Transaction Fees: 2.7% of each transaction after conversion to US dollars.
HIGHEST CASH BACK
Blue Cash Preferred® Card from American ExpressTerms Apply / Rates & Fees
U.P. Rating 
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

This card is great for those who want to earn cash-back with U.S. supermarkets, U.S. streaming subscriptions, transit, and U.S. gas stations.

Learn More(at Amex's secure site)

Apply With Confidence

Know if you're approved with no credit score impact

If you're approved and accept this Card, your credit score may be impacted.

This card is great for those who want to earn cash-back with U.S. supermarkets, U.S. streaming subscriptions, transit, and U.S. gas stations.
Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
$250
$0 intro annual fee for the first year, then $95.
19.24%-29.99% Variable,0% on purchases for 12 months
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)

The Blue Cash Preferred® Card from American Express is a stellar cash-back credit card for those looking to maximize every purchase they make.

With bonus categories like U.S. supermarkets, select U.S. streaming services, U.S. gas stations, and transit purchases, this card rewards you for the items you spend the most on in a big way! For those looking to earn up to 6% cash-back on their purchases, this could be the card for you!

Pros
  • 6% cash-back at U.S. supermarkets (up to $6,000 per year)
  • 6% cash-back on select U.S. streaming subscriptions
  • 3% cash-back on U.S. gas stations and transit (including rideshares, parking, etc.)
Cons
    • $0 intro annual fee for the first year, then $95 annual fee (rates and fees)
  • Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
  • $0 intro annual fee for the first year, then $95.
  • Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
  • Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.24% - 29.99%.
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations.
  • 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit on Amazon.com at checkout.
  • $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
  • Terms Apply.
Financial Snapshot
  • APR: 19.24%-29.99% Variable,0% on purchases for 12 months
  • Foreign Transaction Fees: 2.7% of each transaction after conversion to US dollars.
Rewards Center

Redeem cash-back through your American Express account

Alternatively, if you love to travel (or would like to travel more!) you could sign up for the Chase Sapphire Preferred® Card which is arguably the best travel rewards card on the market.

You will earn 1 points per dollar at Target stores as well as 5x points on travel purchased through Chase Travel, 3x points on dining, and 2x points on all other travel purchases.

GREAT STARTER CARD
Chase Sapphire Preferred® Card
U.P. Rating 
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Learn More(at Chase's secure site)
A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
60,000 points
$1,200
$95
21.49%-28.49% Variable
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)

The Chase Sapphire Preferred® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

Pros
  • 5x points on all travel booked via the Chase Travel portal
  • 5x points on select Peloton purchases over $150 (through March 31, 2025)
  • 5x points on Lyft purchases (through March 31, 2025)
Cons
  • $95 annual fee
  • No elite benefits like airport lounge access or hotel elite status
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
  • Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
  • Member FDIC
Financial Snapshot
  • APR: 21.49%-28.49% Variable
  • Foreign Transaction Fees: None
Rewards Center

Chase Ultimate Rewards

Remember, the points you’ll be earning with this card are extremely valuable, but only when used correctly!

Additional Target Card Options

Target RedCard ™ Debit: In addition to the Target RedCard, Target offers another option: the Target RedCard Debit, which is linked to the cardholder’s checking account.

The Target debit card offers the same 5% savings benefit as the credit card. Additionally, users can withdraw up to $40 in cash-back per transaction. However, since this is a debit card, you can’t use it to build your credit. Similar to the credit card version, this card can only be used at Target and online at Target.com.

Target Prepaid REDcard: The Target Prepaid REDcard by American Express can be loaded with funds each month by the user, who can then use those funds like a regular debit card. These funds can be added via bank account, debit card, cash, or even direct deposit from your paycheck. There are no fees associated with adding money to your prepaid card.

Cardholders will receive the same 5% savings benefit at Target stores and Target.com, as well as the Target.com free shipping and extended returns benefits.

Additionally, cardholders receive free ATM usage at U.S. Target stores. Cardholders can reportedly bay bills online to major utility companies, phone providers, or landlords, and can also create subaccounts to manage expenses for other users like family members.

Plus, since the Target Prepaid REDcard is sponsored by American Express, it also gives you access to benefits like purchase protection, a roadside assistance hotline, a Global Assist®Hotline,5 and Entertainment Access®.

Target Mastercard: Some Target RedCard holders may receive a notification from Target to upgrade their Target RedCard to a Target Mastercard.

This upgrade allows users to receive all the standard benefits of the Target RedCard, while also allowing them to utilize the card for standard purchases anywhere Mastercard is accepted. Of course, the 5% discount does not apply to other merchants — it remains exclusive to Target and Target.com.

Logging in & Managing Your Target RedCard Account Online

Target RedCard holders can access account activity, manage PINs, set alerts, and add authorized users at target.com/myredcard.

If you’re environmentally-conscious, this is also where you can enroll in paperless statements.

Final Thoughts

The Target RedCard offers loyal customers an opportunity to save 5% on purchases, or even more if they look for chances to stack discounts with Target Circle and Target subscription services.

However, be careful! If you get behind on payments, this card’s high interest rate & fees can negate the 5% savings. It’s best to pay off the balance every month or choose the Target RedCard Debit version instead.

Alternatively, if you don’t spend at Target very often, there’s likely a better cash back card out there for you.

Want to be a REALLY savvy cash-back earner? Combine the Target RedCard with another great option like the Chase Freedom Unlimited®, The Blue Cash Everyday® Card from American Express, or The Blue Cash Preferred® Card from American Express. This way you can earn between 1%-6% cash back at tons of other places!

*5% Savings Exclusions:

  • Prescriptions, over-the-counter items located behind the pharmacy counter, and clinic services at Target
  • Target Optical™ eye exams
  • Target gift cards and prepaid cards; Stockpile and Gift of College gift cards
  • Previous purchases
  • Certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen, Freshii, and Pret A Manger
  • Target credit account payments, Target Debit Card cash-back and cash advances on the Target Mastercard
  • Gift wrap and shipping and handling charges on Target.com purchases
  • Wireless protection program purchases and deposits required by mobile carrier
  • Where otherwise prohibited by law

The information regarding the Target RedCard™ was independently collected by Upgraded Points and not provided nor reviewed by the issuer. 

For rates and fees of the Blue Cash Everyday® from American Express, click here.
For rates and fees of the Blue Cash Preferred® Card from American Express, click here.

Frequently Asked Questions

How does the Target RedCard work?

Simply use your Target RedCard at checkout in Target stores or Target.com and your 5% savings is automatically applied. You can also stack this savings with additional Target Circle deals and Target’s subscription service discount.

Does the Target RedCard have an annual fee?

No, the Target RedCard does not have an annual fee.

What credit score do I need for the Target RedCard?

You should have a fair credit score to be approved for the Target RedCard. Most reports state a FICO credit score of 615 or higher is recommended but not required.

Can you use the Target RedCard anywhere?

The Target RedCard and the Target RedCard Debit can only be used at Target stores and Target.com. The Target Mastercard can be used anywhere Mastercard is accepted.

Can you use the Target RedCard at Starbucks?

If the Starbucks is located inside a Target store, you can use the card and get 5% off on your Starbucks purchase.

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About Erin Miller

An experienced points hacker, Erin is Alex’s partner-in-crime and contributes to Upgraded Points with in-depth guides and relationship management. Erin’s work has been cited in multiple major publications.

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