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Target Credit Card Review: Benefits, Drawbacks, and Alternatives: Target is one of the largest retailers in the United States, offering a wide variety of products at competitive prices. Target also offers a credit card, the Target RedCard, which allows shoppers to earn discounts on purchases and gain other benefits. In this Target Credit Card Review, we will explore the benefits, drawbacks, and alternatives of this popular credit card.
Benefits of the Target Credit Card
- Discounts: The Target RedCard offers cardholders a 5% discount on all purchases made at Target stores and on the Target website. This discount is automatically applied at the time of purchase, making it easy for cardholders to save money.
- Free shipping: When you use your Target RedCard to make purchases on the Target website, you will receive free shipping on all orders with no minimum purchase required.
- Extended returns: Target offers an extended return policy for purchases made with the Target RedCard. Cardholders have an extra 30 days to return their items, giving them more time to decide if they want to keep their purchases.
- Exclusive offers: Target RedCard holders have access to exclusive offers and promotions that are not available to non-cardholders. This can include early access to sales, special discounts, and other perks.
- Convenience: The Target RedCard can be used in-store and online, making it easy for cardholders to use their card whenever they shop at Target.
Drawbacks of the Target Credit Card
- High interest rates: The Target RedCard has a high interest rate of 22.90% APR. This can make it expensive for cardholders who carry a balance from month to month.
- Limited rewards: While the 5% discount on Target purchases is a great benefit, the Target RedCard does not offer rewards or cash back on other purchases.
- No sign-up bonus: Many credit cards offer sign-up bonuses or introductory offers to attract new cardholders. The Target RedCard does not offer any sign-up bonus or introductory offers.
- Limited acceptance: The Target RedCard can only be used at Target stores and on the Target website. This limits the card’s usefulness for cardholders who do not shop at Target frequently.
Alternatives to the Target Credit Card
- Chase Freedom Unlimited: The Chase Freedom Unlimited card offers 1.5% cash back on all purchases, making it a great option for cardholders who want to earn rewards on all of their purchases. The card also offers a $200 sign-up bonus when you spend $500 in the first three months of opening your account.
- Citi Double Cash: The Citi Double Cash card offers 2% cash back on all purchases – 1% when you make the purchase and another 1% when you pay your bill. The card has no annual fee and offers a long 0% introductory APR period on balance transfers.
- Discover it Cash Back: The Discover it Cash Back card offers 5% cash back on rotating categories, such as gas stations, restaurants, and Amazon.com. The card also offers a sign-up bonus where Discover will match all the cash back you’ve earned at the end of your first year.
Frequently Asked Questions about the Target Credit Card
Can I use my Target RedCard at other stores besides Target?
No, the Target RedCard can only be used at Target stores and on the Target website.
How do I earn the 5% discount on Target purchases?
The 5% discount is automatically applied at the time of purchase when you use your Target RedCard.
Does the Target RedCard have an annual fee?
No, the Target RedCard does not have an annual fee.
In conclusion, the Target Credit Card offers exclusive benefits for loyal Target shoppers. The 5% discount on Target purchases, free shipping, and extended return periods are attractive features for frequent visitors to the store. However, the limited usability, high APR, and potential impact on credit scores are important drawbacks to consider.
If you prefer more flexibility and want to earn rewards on all your purchases, there are alternative credit cards available. General rewards credit cards, co-branded store credit cards, and cashback credit cards offer a broader range of benefits and rewards that can suit your lifestyle and spending habits.
When considering a credit card, it’s essential to evaluate your personal financial goals, spending patterns, and creditworthiness. Research different options, compare their features, and assess the benefits and drawbacks before making a decision.