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Target REDCard™ Review: Is It Worth It?

Target REDCard™ Review: Is It Worth It?

Everyone loves shopping at Target. From hitting up the Starbucks or perusing the Dollar Spot, you can always find new treasures and household essentials. If you spend a significant amount of time shopping at Target, you’ve likely heard about the Target REDCard™.

Offering 5% off your purchases every day, the REDCard™ could be a tempting option. But is it worth it? Below, find out how the card works, what benefits it offers, and whether or not it offers valuable rewards.

Is the Target REDCard™ credit card a smart option for you?

When it comes to the REDCard™, there are some neat rewards and benefits you should know before submitting an application.


The REDCard™ rewards are very straightforward. With the credit card, you’ll save 5% every day on your purchases at Target stores and Target.com. Whether you buy clothes, laundry detergent, or groceries, you’ll get a 5% discount at the register or online checkout. Over time, that discount can help you save hundreds or even thousands of dollars.

However, there are some exclusions to keep in mind. You won’t get a 5% discount on the following items:

  • Prescriptions
  • Target Optical eye exams
  • Gift cards
  • Restaurants located within Target
  • Shipt membership fees
  • Gift wrap or shipping and handling fees
  • Wireless protection programs
  • Account payments or cash advances
  • Taxes, shipping, delivery, handling and all other fees or charges


As a REDCard™ cardmember, you’ll get access to exclusive special events, products, and promotional offers, such as 10% off coupon on your cardmember anniversary.

You’ll also get free shipping on eligible items at Target.com, and 30 extra days for returns. You can even stack your REDcard™ savings with Cartwheel and Target Subscription discounts.

Terms & Fees

Although the card offers savings at checkout, there are fees to consider. The card has an APR of 24.90%; if you carry a balance, that high interest rate can cost you. There’s no promotional APR offer for balance transfers or new purchases, so interest will start accruing right away.

There’s also a $40 late fee if you miss a payment, and a $29 fee for returned payments.

3 Alternatives to the Target RedCard™ credit card

If you shop often at Target, the REDCard™ might be a good deal. However, it can only be used at Target stores and Target.com, so you’re limited in how much value you can get from the card. You may be able to get more savings or earn more cashback from other credit cards that can be used for all of your purchases. Here are three cash back reward cards you should consider as potential alternatives:

1. Discover it® Cash Back

The Discover it® Cash Back card allows you to earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.

As an added bonus, Discover it® Cash Back will match the cash back you earned during your first year on your card member anniversary. That can give you a cash bonus worth hundreds.

Plus, you can also enjoy the 0% intro APR for 14 months, with a go to rate of 14.24% - 25.24% Variable on new purchases, giving you time to pay off large buys.

2. Chase Freedom Unlimited®

Chase Freedom Unlimited®

Credit Recommended (660-850):
Learn More
Chase Freedom Unlimited®
Editor’s Rating: 4.7
Credit Recommended (660-850):
Rewards Rate 1
1.5% - 5% cash back
Intro (Purchases)
0% Intro APR on Purchases 15 months
Annual Fee
Learn More on the Chase secure website.
Intro Rewards Bonus
Up to $300 cash back
Intro (Transfers)
0% Intro APR on Balance Transfers 15 months
Regular APR
20.49% - 29.24% Variable


  • INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
  • Enjoy 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
  • After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
  • Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
  • No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
  • Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
  • Member FDIC
See additional details for Chase Freedom Unlimited®
With the Chase Freedom Unlimited® earn Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.

You also get 0% intro APR for 15 months from account opening on purchases, then a variable APR of 20.49% - 29.24%.

3. Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

Credit Recommended:
Average, Fair, Limited
Credit Recommended:
Average, Fair, Limited
Rewards Rate 1
1.5% Cash Back on every purchase, every day
Fraud Coverage
$0 Fraud Liability for unauthorized charges
Regular APR
29.99% (Variable)
Learn More on the Capital One® secure website.
Annual Fee
Balance Transfer Fee
Balance Transfer Fee applies to balances transferred at a promotional rate
Foreign Trans Fee


  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories or limits to how much you can earn, and cash back doesn't expire for the life of the account. It's that simple
  • Be automatically considered for a higher credit line in as little as 6 months
  • Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
  • Help strengthen your credit for the future with responsible card use
  • Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
  • Monitor your credit score with CreditWise from Capital One. It's free for everyone
  • Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set
Rates & Fees
Like the Chase Freedom Unlimited®, the Capital One QuicksilverOne Cash Rewards Credit Card card allows you to earn 1.5% cash back on all of your purchases, every day.

The bottom line

While the idea of 5% off every purchase at Target or Target.com may sound appealing, signing up for a store card can be limiting. Unless you shop exclusively at Target, it makes sense to have a general rewards card instead that you can use anywhere.

Looking for a new rewards credit card? Check out our favorite cash back cards.

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