How to Manage a Target RedCard? The Target credit card, called the RedCard, is a credit card that can be used at Target retail stores and on the store’s website. Target RedCard offers a 5% discount on Target purchases, no annual fee, and an additional 30 days for returns and exchanges.
However, the interest rate or annual percentage rate (APR) on the Target credit card is more than 20%. As a result, if you tend to carry high balances on your credit cards for several months, interest charges could wipe out any savings from the discount.
Although Target offers 5% savings on purchases, other credit cards offer cash back, this is when the credit card issuer refunds the cardholder a percentage of the amount spent on purchases. Before you apply, use this guide on how to manage a Target RedCard to help you research whether the Target RedCard is right for you or whether other cards with their rewards or cash-back features are a better fit for your spending patterns.
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How the Target credit card works
How to Manage a Target RedCard? The Target RedCard comes in multiple forms, including a Target credit card (a store credit card) and a Target Mastercard (a traditional credit card). Target also offers a debit card that is automatically drawn from your checking account. Each card has similar benefits.
Retailers like Target typically partner with a financial institution to offer a brand-name credit card where the store and bank share the interest and fees the customer pays. Target credit cards are issued by TD Bank USA, N.A., one of the largest banks in the United States and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada.
The Target RedCard credit card can be used at Target retail stores and for online purchases on the Target website. The RedCard with the Mastercard logo can be used anywhere. There are usually sign-up incentives for those who have recently been approved for a new RedCard.
Rewards and Benefits
Target RedCard does not offer card rewards, points, or cash back on purchases. Instead, you get a 5% discount every time you use the card at a Target store or on their website. Although it may seem like less of an incentive than accumulating points worth of cash with other cards, the 5% discount allows customers to receive their rewards immediately at a discounted price.
Other Target RedCard benefits include:
- No annual fee
- Free two-day shipping on many items, though shipping times could be delayed due to ongoing supply chain challenges.
- Additional 30 days for returns and exchanges
- Exclusive offers for special items, gifts, and more
- Various sign-up bonuses vary from month to month but generally involve money back on your first purchase or discounts on certain types of products. The latest deals can be found on the Target website.
You don’t get a discount on prescription drugs, but there is a separate program through the Target pharmacy that can help you cut costs.
How to Get a Target Credit Card
New applicants can apply for Target RedCard by completing a credit application. The mail-in application is on the Target website, which requires identification and financial information, including your driver’s license number, Social Security number, and annual gross income. You can also apply and submit an application online through Target’s online form.
• Credit Score Required
Credit information about how TD Bank approves credit applications is not specifically described on the Target website. Store credit cards are generally more lenient on credit and income requirements compared to traditional credit cards. However, the credit limit may be lower for a credit card if you have irregular credit because it helps reduce the risk of financial loss to the card-issuing bank.
While credit score ranges may not be disclosed, a consumer’s credit history generally needs to be fair or good to be approved for a credit card. A credit score is a numerical representation of a person’s ability to manage debt and pay loan and credit card payments on time. A person’s credit history affects their credit score, which can include how long their credit accounts have been open, how many times they have fallen behind on payments, and the amount of debt outstanding.
A person’s credit score generally determines whether they are approved for a credit card and the interest rate charged on outstanding balances. Although Target doesn’t specifically specify a credit score required, a person usually needs a credit score above 600 to be approved for a debit or credit card, although stores do have consumer-approved cards with scores. If your credit score is less than 600, you will likely be charged a higher interest rate and have a lower credit limit if approved.
What do I need to apply for a Target credit card?
Some of the information you’ll need to provide when you apply for a credit card at Target include:
- Your social security number
- Name
- Title
- Date of birth
- Driver’s license number
- State id number
- Your annual gross income, meaning all of your income for the previous year is tax deductible
How To Manage A Target RedCard
How to Manage a Target RedCard? In everyday use, the Target RedCard works similarly to other credit cards. If you have a Target Mastercard, you can use it anywhere Mastercard is accepted. Other types of RedCard only work at Target stores. When you make a purchase, it will appear on your card. You can then make a card payment in a variety of ways, including online.
How to make a Target RedCard payment
There are four ways to make a payment to your Target RedCard:
- Go to Target.com/RedCard/About, click on “Manage My RedCard”, and enter your username and password on the Target RedCard login page, when the Manage My RedCard screen appears, click on “Schedule a Payment” under the Info tab Pay on the left side of the screen
- By phone (800-659-2396)
- In the store
- By mail
You can choose the method that best suits your needs; There is no fee for paying your balance using any of these methods. Just make sure you make your payments on time, or you could end up with a red card with high APR costing you a lot in interest.
The Target RedCard comes in the form of a Store Credit Card or Mastercard Logo Credit Card. The 5% discount applies to both cards, but only to purchases made at Target. As a result, if most of your purchases are made off Target, you may miss out on discounts from other card issuers.
Target RedCard Terms and Conditions
Target RedCard does not offer a low introductory interest rate. The card’s APR of 23.65% is high but standard for most store cards. It will vary based on the prime rate because the goal is to add a percentage to the prime rate to arrive at the card’s APR.
You have 25 days after the end of your billing cycle to pay all fees and avoid interest. Late payment fees are up to $41, depending on your payment date, and will be assessed when no payment is due by the payment due date. In other words, there is no grace period, but no penalty APR or annual fee. However, a $30 return fee is charged if you make a payment, such as a written check, and this is not made clear with the bank.
The card does not offer balance transfers from other cards. So if you’re looking for a card that allows you to earn rewards on purchases anywhere, this isn’t the card for you. In fact, there are many great cash-back cards out there today that have a much more favorable APR.
When you apply for a Target RedCard, you will need to provide your financial and personal information, including:
- Name and direction
- E-mail address and phone number
- Date of birth
- Social Security number
- Driver’s License or State Identification Number
- Gross annual income, ie your income before income taxes are deducted from your paycheck
If you place an order online through Target’s website, you will be asked to create a PIN, which is used to authorize in-store purchases.
When the order is completed and submitted, it is sent to TD Bank USA, NA, and Target Corporation.
Who should consider a Target credit card?
The Target RedCard can provide plenty of savings with 5% off purchases at Target stores and its website, especially if you shop a lot at Target. If you have a family or kids to shop for, the cost of supplies like paper towels, cleaning supplies, and groceries can run into thousands of dollars a year.
For example, spending $1,000 to $1,500 per month on supplies will add up to $12,000 to $18,000 per year, respectively. A 5% discount on all of these purchases equals $600 to $900 in annual savings (.05 * $12,000 or .05 * $18,000).
Consumers who buy most of their items at other stores may be better off with a traditional credit card that offers specific points and discounts tailored to the customer’s buying behavior. Travel cards that partner with airlines and gas rewards are two types of credit cards that companies partner with banks to offer branded credit cards.
Target credit card alternatives
Since Target offers both a store credit card and a traditional Mastercard credit card, you can apply for whichever suits your needs. Traditional credit cards with the Mastercard logo work anywhere they are accepted, which is why they are called open-loop cards.
Other types of rewards cards
If you’re looking to get cash back, points, or discounts on purchases at other merchants, it may be best to get an open card. For example, reward cards are usually open-loop cards that can be used anywhere in exchange for a store charge card. Rewards can include cash back, airline miles, and hotel rewards. There are also cash-back credit cards in which consumers get a percentage of the amount they spent using the card.
The right card for you depends largely on the types of purchases you’ll be making and the benefits you’d like to receive from the credit card issuer. For example, there are travel cards specifically designed to offer travel points or discounts on airfare and hotels, allowing your purchases to build up points over time. If you drive a lot of miles, a card that offers you gas points may be best for you because some oil companies and banks offer gas credit cards designed to reduce the cost of fueling your car.
Credit cards offered by Target’s competitors
Before applying, be sure to shop around and compare the various credit cards offered by stores that compete with Target because you might find a better deal. Target’s competitors include the Sam’s Club Mastercard, Costco Visa, and Amazon Prime Rewards Visa Card. Each of these cards has pros and cons associated with it.
FAQ – How To Manage A Target RedCard?
What credit score is required to get a Target RedCard?
Target does not indicate the minimum credit score required to be approved for a Target credit card. Some banks approve store cards for those with a fair credit history or just over 600 credit scores. However, some banks approve credit cards for those with credit scores in the 500s. If your score is low, you may still be approved, but those with higher credit scores may be charged a higher interest rate and offered a lower credit limit.
Is Target RedCard a credit card?
The Target RedCard comes in many forms. The Target RedCard charge card only works at Target stores and on the company’s website. The Target credit card with the Mastercard logo works at any merchant, store, or website. However, the 5% discount benefit only applies to purchases made at Target’s retail locations and on its website. The Target RedCard also comes in the form of a debit card, which is not a credit card because purchases are charged to your bank checking account linked to the card.
Can a Target Credit Card Help Build Credit?
The Target RedCard is available as either a credit or debit card. For a credit card issuer, the user’s payments are reported to the major credit bureaus. This can be used to build credit, as long as you make payments promptly.
Where can Target RedCard be used?
Target RedCard and discount cards are private-label or closed-loop cards, which means they can only be used in Target stores and online through Target’s website. However, the Target Mastercard can be used by any merchant that accepts the Mastercard. If you will be using the card at other merchants, please be aware that the 5% discount on purchases only applies to purchases at Target and on its website.
Conclusion – How To Manage A Target RedCard?
How to Manage a Target RedCard? In everyday use, the Target RedCard works similarly to other credit cards. If you have a Target Mastercard, you can use it anywhere Mastercard is accepted.
Other types of RedCard only work at Target stores. When you make a purchase, it will appear on your card. You can then make a card payment in a variety of ways, including online. Target RedCard offers consumers the option of a charge card, for Target purchases only, or a credit card with the Mastercard logo that can be used anywhere Mastercard is accepted.