Target REDCard™ Review: Is It Worth It? December 17, 2018 Share Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information. 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. Rewards 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 Benefits 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 $38 late fee if you miss a payment, and a $27 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): Good/Excellent Learn More Editor’s Rating: 4.7 4.7 Learn More Credit Recommended (660-850): Good/Excellent Intro (Purchases) 0% Intro APR on Purchases 15 months Intro (Transfers) 0% Intro APR on Balance Transfers 15 months Annual Fee $0 Learn More on Chase secure website. Regular APR 17.24 - 25.99% Variable Credit Recommended Good/Excellent Intro Rewards Bonus $150 Bonus Highlights 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%. Balance transfer fee is 3% of the amount transferred, $5 minimum Unlimited 1.5% cash back on every purchase - it's automatic Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening No minimum to redeem for cash back Cash Back rewards do not expire as long as your account is open Free credit score, updated weekly with Credit Journey℠ No annual fee See additional details for Chase Freedom Unlimited® With the Chase Freedom Unlimited®, you can earn 1.5% cash back on all of your purchases, regardless of where you shop. Plus, you’ll earn a signup bonus worth $150 if you spend $500 within the first three months of opening your account. You also can transfer your balance and get 0% APR or get 0% APR on new purchases for up to 15 months, then a variable APR of 17.24 - 25.99%. 3. Capital One® QuicksilverOne® Cash Rewards Credit Card Capital One® QuicksilverOne® Cash Rewards Credit Card Credit Recommended: Average, Fair, Limited Learn More Learn More Credit Recommended: Average, Fair, Limited Balance Transfer Fee $0 Foreign Trans Fee None Regular APR 26.96% (Variable) Learn More on Capital One® secure website. Annual Fee $39 Product Type ConsumerCard Credit Recommended Average, Fair, Limited Highlights Earn unlimited 1.5% cash back on every purchase, every day Earn cash rewards without signing up for rotating categories Get access to a higher credit line after making your first 5 monthly payments on time 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 See additional details for Capital One® QuicksilverOne® Cash Rewards Credit Card 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. However, you should keep in mind that there is a $39 annual fee. 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.