Target REDcard credit card review: A bull’s eye for Target shoppers


Target REDcard credit card overview

The Target REDcard is a solid earner, featuring a 5% discount on Target and purchases, 2% back on dining and gas station purchases and 1% back on everything else. It is a strong contender for those who spend big at Target — but not elsewhere. Card rating*: ⭐⭐½

*Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

With everything from clothes and electronics to diapers and groceries, shopping at Target is as close to one-stop shopping as possible. If you spend much of your budget here, you can benefit from the savings and benefits the Target REDcard credit card offers.

Note that there is also a debit card version of this product.

Let’s break down the REDcard’s perks and earning structure to help you decide if it’s a good fit for you.

The information for the Target REDcard credit card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Target REDcard welcome offer

This card doesn’t have an annual fee, but it doesn’t offer a sign-up bonus either. Still, many will find that the card’s simple earning and redemption structure is valuable enough to forego a bonus.


Earning rewards on the Target REDcard

The REDcard’s earning structure is different from most reward cards.

Instead of earning points or cash-back rewards at Target, this card’s most valuable benefit is a 5% savings on most in-store and online Target purchases (exceptions apply, such as prescriptions and gift cards). This also includes purchases at in-store Starbucks locations as well as specialty gift cards for travel, restaurants and movie tickets, among other things. This structure is especially great for anyone who doesn’t want to keep up with earning rewards since these savings are automatic.

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Apart from Target purchases, you’ll earn 2% back on dining and gas purchases and 1% on all other purchases. So, you’ll earn rewards everywhere you spend.

Redeeming rewards on the Target REDcard

You’ll get a 5% automatic discount on most purchases when shopping in-store or online with Target.

However, when spending elsewhere, it’s more complicated. Once you reach at least $10 in savings, you need to go online or call to request an electronic or physical gift card to use at Target. This is a more complicated process than most other cash-back cards, which offer statement credits as the easiest method to redeem rewards.

Target REDcard benefits

As a cardholder, you’ll get free two-day shipping on online Target orders without the usual $35 order minimum, an additional 30 days for Target returns and exchanges, and access to REDcard exclusive special offers and items.

This card also has no foreign transaction fee, which is unusual for a no-annual-fee, cash-back card.


What cards compete with the Target REDcard?

If you don’t spend the majority of your budget at Target (who does?), there are more valuable cards out there:

  • If you spend more of your budget at Amazon than at Target: The Amazon Prime Rewards Visa Signature Card has a similar earning structure as the Target REDcard, earning 5% back on Amazon and Whole Foods Market purchases; it also earns 2% back at restaurants and gas stations, and 1% back on all other purchases. While it doesn’t carry an annual fee, you must be an Amazon Prime member to get this card. For more details, check out our full review of the Amazon Prime Rewards Visa Card.
  • If you want to earn 5% at multiple merchants: The Chase Freedom Flex℠ earns 5% back on quarterly rotating categories such as grocery stores, gyms and even Target, giving you a wider range of opportunities to maximize your cash back. It also earns 3% back on dining and drugstore purchases and 1% on all other purchases. For more details, check out our full review of the Chase Freedom Flex.

For additional options, check out our full list of best store credit cards and best cash-back cards.

Related: Store vs. cash-back cards: Which one should I get?

Is the Target RedCard worth it?

The Target REDcard doesn’t carry an annual fee and earns 5% back on Target purchases. However, getting it can mean sacrificing greater earnings you would receive with a different card. Plus, redeeming your rewards is a more complicated process than with most other cash-back cards. Before applying for this card, calculate your expected savings and compare them with how you would earn on some of our other favorite cash-back and store cards.


Related: The best cards for Target purchases

Bottom line

The Target REDcard is a great option for regular Target shoppers who want a simple rewards structure. However, compare the rewards you’ll earn on it against those you would earn on an alternative card. This card is aimed at loyalists who want to hit the bull’s eye at Target — and not elsewhere.


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