I’m not normally a fan of store credit cards, but I recently looked into the Target REDcard, and I have to say that it looks quite good. This past weekend, my wife and stopped in at our local Target store for some early Christmas shopping. While there, I picked up a pamphlet about the REDcard and gave it a quick once over.
Hmmm… Not too shabby. Yes, it’s a store-branded credit card, but it’s an actual Visa card that you can use anywhere you please. On top of that, you get 5% cash back on all Target purchases. And for every five prescriptions you buy with it (from the Target pharmacy, of course) you get an additional 5% at Target for an entire day.
The Target Visa is not to be confused with the Target Credit Card, which can only be used at Target, but still offers the cash back rewards. Interestingly, they also offer a debit card that you can link directly to your checking account. This debit card can likewise only be used at Target, and it also qualifies for the 5% cash back rewards.
The primary downside to the REDcard is that you don’t earn rewards anywhere else. Thus, this card probably only makes sense if you’re going to carry it alongside another “general purpose” reward credit card. Given that I’ve been trying to simplify our financial life, that makes it significantly less attractive to me.
Ultimately, I decided to pass on this card. We just don’t shop at Target often enough to make it worth keeping track of another credit card bill every month. While we could use the debit card to get the 5% discount without generating another bill, I’m not crazy about the idea of linking a third party debit card to our checking account.
What about you? Are you interested in this sort of targeted (no pun intended) reward card? Or would you prefer to just carry a single, general purpose reward credit card?
If they can make it work with typing a phone number and a pin as you do with some grocery store loyalty program, I would sign up with the debit version. No place for another card but auto debit would be fine.
I do have the Target debit card…it is tied to my checking account. We typically shop there and do save quite a bit. We do a lot of mfg coupons tied to Target coupons and they price match if it is in an ad. For us the savings is good and it is taken out of the checking account so there is no bill to pay at the end of the month.
there would be no point of offering a debit card, without some sort of reward (5%). I am trying to at least get my sister to get the debit card, as she shops at Target a LOT and uses her bank debit card, which rewards her with?
Todd: No, you get 5% with the debit card, too.
Chucks: Hmmm. According to their website, it looks like all three types are actually referred to as the REDcard as all three are accessible from the “Manage my REDcard” page.
They further refer to the Visa version as the Target Visa, and the store credit and debit cards are named accordingly. And it looks like you’re right — at least on the web, they don’t seem to be taking apps for the Visa card. Either I mis-read something in the store about the available card types or they had old info.
I think you switched the names around here. The REDcard is a store only card with 5% off in store. The Target Credit Card is a Visa Credit card which I believe also offers 5% off in store. Unfortunately I don’t think Target is taking applications for the Target Visa any longer.
P.S.,i also make sure that i do not purchase more than i can pay off when the bill comes due or the whole purpose of using the card, backfires.
I shop moderately at Target , but i also find and combine Target coupons and mfg coupons w/the 5% reduction and often they have a special on some items, that buy 2 and get a $5 gift card to boot? (i look for coupons to use with these specials also, or i just don’t purchase). I don’t do too bad, as the items i limit myself to are non perishable items for the most part, and items that i know we use constantly. So, the Target card works for me.
I have the RedCard (Target only), and as an employee there, can use it with my 10% employee discount. This means not having to go to Walmart across the very busy 4-lane main drag to get milk.
Target’s milk is NOT cheap, but with my discount it saves me the hassle of shopping around for the best prices. And as an employee, it’s one less trip and gas to make to buy necessities after I get off work.
I may seriously consider using the Target debit card instead, as I am trying to eliminate debt.
The philosophy is to eliminate the exchange fees by bringing the credit cards in house and pay what would have been paid to exchange fees back to the guests instead. Many don’t realize it, but Target’s prices on most daily needs items are already equal to or lower than Walmart. When you add using the REDcard, this makes Target the cheapest option in discount retailing.
One thing to note though, the debit card version does not have a 5% discount for target.com while the credit card version does.
We don’t shop at Target that much, so no REDCard for us. I’d like the 5%, but, like you, we don’t want yet another card/bill to deal with.
My wife actually has one of the Target cards. We hardly ever use it though. I guess if you did a ton of shopping at Target then this might be a good card.
I always was tempted when it came out, but I don’t want yet ANOTHER rewards cc in my growing wallet (I already have a few to optimize various categories). 5% is a lot though.
Roy: You’re right. I’m not sure how I missed that. I’ll update the article.
Nickel,
According to the target website, the 5% cashback applies to the normal target credit card as well.