Target RedCard Review 2024 (2024)

The Target Circle™ Credit Card* is a no-annual-fee store card that rewards Target’s most loyal shoppers with a generous 5% off on purchases at Target in store or online purchases. Although the Target RedCard does not offer a traditional credit card rewards program, it could arguably be one of the most rewarding credit cards out there with its straightforward savings on each purchase.

The card’s 5% discount is also stackable with any additional deals available through the Target app and other exclusive sales.

The perks from the Target RedCard Credit Card could easily rack up hundreds of dollars worth of savings each year on a vast array of Target purchases, which is noteworthy for a no-annual-fee card.

The biggest drawback of the Target RedCard Credit Card is the high interest rates and fees, which can quickly snowball and substantially outweigh the value of the 5% savings.

• No annual fee
• Can only be used on qualifying Target purchases
• Get 5% off on purchases at Target in store or online purchases
• Free two-day shipping from Target.com
• Extended return policy benefit adds 30 days onto Target’s regular return policy

Earning Rewards

The card earns an automatic 5% off on purchases at Target in store or online purchases. Be aware that some purchases are not eligible for the 5% discount including Target Optical eye exams, Target and other select gift cards and prescription items.

You can also use the card’s discounts on top of other offers found in the Target app to stack the savings. Other discounts range between 5% and 50% off merchandise and can be stacked with the 5% RedCard discount.

Redeeming Rewards

You don’t have to take steps to redeem your earnings—it happens automatically during the checkout process.

Rewards Potential

Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households brings in $118,438 annually and can reasonably put $39,337 in expenses on a credit card.

Based on Forbes Advisor’s estimates, our sample household would spend $11,790 at Target on groceries, drugstore spending, electronics and apparel. With the Target card, they’d save 5%, or $589.50, for a total outlay of $11,200.50.

• 5% discount at in-store Starbucks
• 5% discount on clearance
• 5% discount on specialty gift cards
• 5% discount on your same-day-delivery order through Shipt when placed on Target.com (delivery fees may apply)

Interest Rates

• Regular APR: 29.95% variable

Fees

• Annual fee: $0

Target Circle™ Credit Card* vs. Prime Visa

The Prime Visa is a no-brainer for anyone who regularly shops through the online retailer and/or at Whole Foods Market. The card earns 5% back on purchases at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel℠ purchases with an eligible Prime membership, unlimited 2% back at gas stations, restaurants and on local transit and commuting (including rideshare), and unlimited 1% back on other purchases. This makes it a far more flexible option than the Target RedCard because you can use the card anywhere Visa is accepted.

There’s no annual fee or foreign transaction fees, but a $139 Prime Membership ($69 for students) is required to apply. Rewards can be taken as cash back, a statement credit or used towards future Amazon purchases.

Target Circle™ Credit Card* vs. Capital One Walmart Rewards® Mastercard®*

If you’re looking to get rewarded for online shopping at a store that can fulfill most of your household needs, theCapital One Walmart Rewards® Mastercard®* could be a worthy option. It earns 5% cash back on purchases made at Walmart.com and the Walmart app, including grocery pickup and delivery, 2% cash back on restaurants and travel, and at Walmart Stores, Walmart & Murphy USA fuel stations and 1% back everywhere else.

There’s no annual fee and no membership requirement to apply. Because the Walmart Rewards Card runs on the Mastercard network, it can be used anywhere Mastercard is accepted.

Target Circle™ Credit Card* vs. Citi Double Cash® Card

If you’re seeking a card that earns solid returns without being tied to one store, the Citi Double Cash® Card fits bill. The card carries no annual fee and earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. You can take your earnings as a statement credit, cash-back deposit or Citi ThankYou points.

Earning 2% isn’t as generous as the 5% rewards offered by the Target RedCard, but you can use the Citi Double Cash everywhere Mastercard is accepted, which might net you more earnings overall. This card is also useful when paired with the Target RedCard for non-Target shopping.

Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:

• Annual fees
• Welcome bonus offers
• Annual percentage rates
• Ongoing earning rates
• Additional cardholder benefits

Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.

Read more: How Forbes Advisor Rates Credit Cards