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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):
Intro (Purchases)
0% Intro APR on Purchases 15 months
Intro Rewards Bonus
$200 bonus
Annual Fee
Learn More on Chase secure website.
Intro (Transfers)
Regular APR
14.99% - 23.74% Variable
Credit Recommended


  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
  • Earn unlimited 1.5% cash back on all other purchases.
  • Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.
  • No annual fee.
  • 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
  • No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.
See additional details for Chase Freedom Unlimited®
With the Chase Freedom Unlimited®, you can earn unlimited 1.5% cash back on all of your purchases, regardless of where you shop. Plus, you’ll earn a $200 bonus after you spend $500 on purchases in the first 3 months of account opening.

You also get 0% intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.

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
Credit Recommended
Average, Fair, Limited
Balance Transfer Fee
$0 at this Transfer APR
Fraud Coverage
You're covered by $0 Fraud Liability if your card is ever lost or stolen
Learn More on Capital One® secure website.
Foreign Trans Fee
Regular APR
26.99% (Variable)
Annual Fee


  • Earn unlimited 1.5% cash back on every purchase, every day
  • Earn cash rewards without signing up for rotating categories
  • Be automatically considered for a higher credit line in as little as 6 months
  • Monitor your credit profile with the CreditWise® app, free for everyone
  • $0 fraud liability if your card is ever lost or stolen
  • No limit to how much cash back you can earn, and cash back doesn't expire for the life of the account
  • Help strengthen your credit for the future with responsible card use
  • Get customized alerts and manage your account with the Capital One mobile app
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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Editor’s Rating

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