Does the Target Credit Card Build Credit? (2024)

FAQs

Does the Target Credit Card Build Credit? ›

The Target Credit Card is good for building on fair credit because it reports to the three major credit bureaus on a monthly basis. This will help you build your credit as long as you pay the bills on time. However, you are unlikely to get approved for this card if you have limited credit history or a bad credit score.

Your payment history is reported to each of the 3 major credit bureaus, helping you establish a comprehensive credit rating.

Your Target Credit Card approval odds are good if you have a credit score of 640+, which is considered fair credit. Approval odds for the Target Credit Card will also be influenced by your annual income and existing debts.

When you apply for a Target Credit Card, the issuer will also consider your income, employment status, debts, housing information, and more. Here are the Target Credit Card requirements for approval: Minimum credit score: 640+ (at least fair credit)

Who this card is good for. If you spend a few hundred dollars at Target every year, you're likely to get meaningful value from the Target RedCard™. The 5% discount on eligible purchases you'll make at the store provides a clear benefit, and the card is easy to use.

The best credit card for building credit is the Discover it® Secured Credit Card because you won't have to pay an annual fee, it has good rewards and it reports to the major credit bureaus monthly.

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This account does not require a credit check – the approval process only requires identity verification – allowing for greater access to exclusive Target benefits.

The Discover it^® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited / poor credit. It offers great rewards and charges a $0 annual fee.

The Target Credit Card requires fair credit or better (640+ credit score) for good approval odds.

After you get approved, you'll receive an email containing a temporary shopping pass. This will allow you to start using your new Target Credit Card straight away. If you apply in a Target store, then they will print a temporary shopping pass for you at the store.

What is the highest Target Credit Card limit? ›

The Target Mastercard credit limit is usually around $6,000 to start, according to forum posts, and some cardholders report limits as high as $8,000. The issuer does not include any specific credit limit information in the card's terms, though.

It is also worth noting that after 12 months, accounts get reviewed for automatic credit limit increases. These inquiries will result in a soft pull of your credit report, so they won't affect your credit score.

Target offers a RedCard credit card issued by TD Bank USA.

By using the card and making timely payments, the Target RedCard Credit Card can help build your credit.

Chip Lupo, Credit Card Writer

No, the Target Credit Card is not a good first-time credit card because it is only available to people with fair credit or better. People who've never owned a credit card are unlikely to get approved unless they've built fair credit through other means.

The Target Credit Card reports to the credit bureaus once each month, within days after the end of your monthly billing period. TD Bank reports the card's credit limit, account balance, payment status, and more to TransUnion, Equifax, and Experian.

All versions of the Target RedCard provide a 5% discount at Target and Target.com. The 5% discount doesn't apply to certain categories of items, including prescriptions, eye exams, Target gift cards, taxes and shipping. You'll also get free two-day shipping and an extra 30 days for returns and exchanges.

Using a credit card has a direct influence on the most important factors that go into your credit score. So getting a credit card and using it regularly and responsibly is one of the quickest and most effective ways to build or rebuild your credit.

A well-managed and long-held credit card could help to build your credit score over time. A good credit score could improve your chances of being accepted for credit in future. When using a credit card, always make payments on time and minimise what you spend.

Yes. Just like a credit card, store cards can help you build your credit history. However, you have to make timely payments of at least the minimum balance, plus keep your credit utilization below 30% to positively impact your history.