Target Red Card Review – Is It The Best Shopping Card?

4.4 stars out of 5

The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

Target Red Card is a store credit card issued by the large retailer Target, one of the largest retailers in the US. It is a discount retailer with many different brick and mortar stores as well as a strong online presence. 

The Target card has many perks and rewards for cardholders but the biggest is that customers get 5% off every purchase at Target, no limits. Target Red card can be used online for purchases and when it is used, cardholders get 2 day free shipping.

The card doesn’t have an annual fee, and can be great for average credit (around a 615 credit score) who want to use it to build or rebuild their credit. In addition, Cardholders get an extra 30 days for returns with the Target Red card.

The card can only be used at Target stores but after a few years of use, Target will upgrade some cardholders to a Mastercard that can be used anywhere. 

However, there are almost no perks for using the card outside of Target and the ongoing APR is very high, 24.40%.

Target Red Card

On Target’s Secure Website

Our Bottom Line

  • Great For Frequent Taregt Shoppers

Credit Rating Requirements

  • Avergae – Good Credit


  • No Annual Fee
  • 5% Off on All Purchases


  • No 0% APR Introductory Rate
  • No Sign-Up Bonuses


  • Subscription Services
  • Exclusive Offers
  • Combined Discounts

Here’s a summary of the main pros & cons (click to see explanation or scroll down):




Let’s take a look at the benefits of the Target Red card and see if it’s the right one for your wallet or not.

  • No Annual Fee

You do not have to meet a spending threshold in order to offset an annual fee.

  • Average Credit

Customers with less than excellent credit can still get the Red Card. 

The Target Red card threshold is around a 615 credit score. You may get the card and use it to rebuild credit.

  • 5% Off on All Purchases

Cardholders of the Target Red card enjoy a 5% discount on all purchases at Target stores and online with very limited restrictions. 

The 5% comes off your purchase at checkout. You do not have to save up points for cash back. It is 5% savings everyday for every purchase.

  • No Limit

The Target Red card has no limits with regard to getting 5% off. 

Many cards in the market have spending caps on the rewards they can earn, but the Red card does not.

  • Free Delivery

Target Red card can be used online for purchases and when it is used, cardholders get 2 day free shipping. 

Usually to get free shipping from Target customers need to purchase over $35 in merchandise. There are some restrictions so make sure to read item details before making an online purchase.

  • Extended Returns

Cardholders get an extra 30 days for returns with the Target Red card. That means customers have up to 120 days to return items they do not like, need, or that were defective.

  • Subscription Services

If there are products you regularly buy at you can set up a subscription service to have them automatically delivered every month. 

Target Red cardholders get an additional 5% discount on top of the subscription discount, which is also 5%. Cardholders also get a 15% discount on baby products, such as diapers.

  • Starbucks Discount

Many Targets have a Starbucks in the store and the Target Red card can also be used at Starbucks, meaning customers can enjoy 5% off their coffee.

  • Exclusive Offers, Combined Discounts

Target Red cardholders get access to special offers ranging from increased discounts and early access to Black Friday deals to exclusive products and discounts on outside vendors like

Also, it offers 5% off can be used with sales, coupons, and clearance items. You will always save 5% more on even your otherwise discounted purchases.


Here are the most important cons you should consider before applying to the Target Red card:

  • High APR

The APR for the Target Red card is a 24.40% variable rate. 

These rates are high but many can qualify with ok credit. Most store cards have very high APRs.

  • No 0% APR Introductory Rate

The Target Red card does not offer an introductory rate unlike many cards on the market. It you need or are looking for an introductory rate, you will have to look at other offerings.

  • No Sign-Up Bonuses

Many credit cards, including store cards, offer some kind of sign-up bonus. This is the extra perk that many need as motivation to get the card. 

Currently, the Target Red card does not offer a sign-up bonus.

Is the Target Red Card Right for You?

The Target Red card is great for anybody who shops at Target or at, both loyal customers and occasional shoppers. The 5% discount on all purchases cannot be matched by even some of the best cashback credit cards available. Shoppers do not have to wait months or build up points or amounts to use the 5%. 

 Those who are loyal Target customers will find even more perks with free shipping and exclusive offers. Customers who may not have stellar credit may still be able to get a Target Red card and benefit from the perks. They can even use the card to help rebuild their credit history.

The card doesn’t have some of the regular features that other credit cards do, such as cash advances and 0% APR introductory rates, but you can save 5% on all purchases at Target. Customers can also sign up for a Target Red debit card which is connected to your checking account and is used like any other debit card. 

Customers will get the same perks as with the Red card but it will be connected to your checking account. However, with the debit card you will not be building your credit. If you do not shop at Target or shop very infrequently there, this may not be the card for you.