Target REDCard is one best store credit cards out there. It is ideal for everyday shopping as it offers one of the highest discounts as you shop with it every day. Target shoppers can get a five percent discount on all the everyday essentials on in-store and online purchases each day, even on in-store Starbucks purchases (for coffee lovers).
The discount is automatically applied to purchases when you make them – you don’t have to accumulate rewards or turn in any rewards certificates to receive the benefit.
You’ll even receive free shipping on most items sold at Target.com. There is also no annual fee on the Target REDcard. That means you can enjoy discounts on all your purchases at no cost—as long as you pay your balance in full each month.
Target REDcard Pricing
While you won’t pay an annual fee on the Target REDcard, there are penalty fees based on how you use your card. There’s a late fee of up to $38 when you’re late on your monthly minimum credit card payment and a $27 returned payment fee if your bank returns your credit card payment. Purchases are charged at 23.40 percent APR, which is considered very high for the industry.
How To Maximize the Target Credit Card | All You Need To Know
As with all credit cards, especially rewards credit cards, you should pay your balance in full each month to avoid finance charges and to get the full benefit of your 5 percent discount. However, this 5 percent discount can evaporate quickly if miss your payments.
Not all your Target purchases will qualify for the five percent discount. Exemptions include such things as target’s optical eye exam, gift cards, gift wrapping, previous purchases, certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen and Pret A Manger, and wireless protection program purchases—as well as deposits required by mobile carriers.
if you’re a big Target shopper, having a credit card at your disposal in your favorite store might tempt you to overspend. Therefore, watch your spending the same way you would if you were using your checking account—or, better yet, cash. After all, you have to be able to afford to pay your balance in full each month or the steep interest rate will overwhelm you.
You need to also pay attention to your credit utilization. Store credit cards often come with a low credit limit and are easy to max out. Keep your credit card balance below 30 percent of the credit limit, especially around your account statement closing date, so your credit score isn’t impacted by a high balance.