Target REDcard Review: 5% Discount and No Annual Fee
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Target RedCard Review: RED CARD OR RED FLAG?

Read more about the pros and cons of the Target RedCard™ as well as potential alternatives.

Editorial Note: Our editorial team’s content is not provided, commissioned or otherwise endorsed by any financial institution or partner. The opinions, reviews or recommendations expressed in any article mention are solely those of our editorial team.

Quick Facts

  • RedCard™ holders save up to 5% at Target & on each purchase
  • Get free 2-Day shipping on some items from
  • Online card management


  • 5% Off Target Purchases
  • No Annual Fee


  • Very High APR
  • Limited Redepemtions
  • Little to No Rewards Outside of Target Purchases

Alternative Pick:

The card offers a popular rewards program for the things you buy most:

What really makes this card stand out is the unique cash back intro offer: . That's perfect for people who don't want to have to spend a hefty amount during the first 3 months to get a sign up bonus. And with no limit to how much is matched, that could mean an enormous first-year bonus for big spenders!

Full Review of Target RedCard™

The Target RedCard™ Credit Card could be a valuable option in the wallets of those who make a trip through Target a routine part of their retail shopping habits. But even without paying an annual fee, the deals this card offers can come at a significant cost. Let’s take a closer look.

Credit card rewards can cause as much confusion as the decision about which card to get in the first place. With the Target RedCard™, confusion isn’t an issue. That’s because you automatically get a 5% discount on nearly everything you buy at Target. There’s no need to redeem points or calculate the smartest way to get the most out of your purchases since the 5% savings is applied right at the register. So, what else can you expect along with these simplified rewards?

The answers might have you seeing red. The first thing to consider is whether you plan on carrying a balance from time to time. If you fail to pay off your entire balance each month with this card, you’ll have to fork over more than 26% APR based on the current Prime Rate. Other rewards cards offer APRs far lower. And that means carrying a balance with this card just doesn’t make sense.

... fork over more than 26% APR based on the current Prime Rate.

Then there’s the matter of shopping everywhere else. While brand loyalty can certainly pay off when it comes to rewards incentives, stepping back to consider what percentage of your purchases happen at a single store can really help bring your finances into focus. Travel, hotels, home improvement, utilities…the list goes on and on. For all of these expenses as well as unexpected spending outside the Target rings, there are other cards that offer more valuable rewards. These can come in the form of points, discounts, and even the uncomplicated option of cash back.

Closing Thoughts

So, why limit yourself? We suggest checking out some of the more popular and versatile choices including the Discover it® Cash Back, the Chase Freedom Unlimited®, and the Citi® Double Cash Card – 18 month BT offer for a long list of benefits, generous rewards programs, and much lower APRs.

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