What’s the Difference Between the Target REDcard Credit Card and Debit Card?

Target red card

The Target REDcard is a great card to have if you’re into savings and rewards (and who isn’t?). What most people don’t realize, however, is that there is more to the REDcard than meets the eye. The biggest misconception so many consumers have is all about what the REDcard really is. Some consider it a card that’s for debit purchases and others think it’s just a credit card. Another group of people think that this card is just for people who want to save 5% when they shop at Target. They’re all correct, and they’re all incorrect. The Target REDcard is all of the above, and so much more.

The REDcard comes in three forms; debit card, store credit card and Visa credit card. Each one offers discounts, savings and great features that will benefit you financially, which is the reason so many people choose to apply for this particular card. What we’ve done is go through the list of features each card has to offer as well as break down the differences in each card. Fortunately, all three cards offer the same amount of discounts and savings, and they’re only different in one way.

Related Target Articles:
Does Target Price Match?
Target Red Card: 5 Things You Should Know
Get Target’s Store Markdown Schedule
How The Target Photo Center Will Save You Money
Target Money Saving Tips

REDcard Debit, Credit and Visa Card

The differences between the three cards are very minimal. In fact, they are almost nonexistent. Each card is virtually the same with the exception of how the card is defined. The Target REDcard debit card is a debit card; it’s linked to your bank account so that everything you spend at Target comes directly out of your bank account. You can even ask for up to $40 cash back when you’re shopping at Target and you choose to use this card. The Target REDcard credit card is a store card that can be used only in Target stores for purchases. The Visa is a credit card as well, but it’s one you can use anywhere that Visa is accepted in the world.

5% Target Rewards

No matter which of the Target debit or credit cards you use when you make your next purchase at Target, you will automatically receive a 5% discount on the total price of your order. This is applicable on every order you make at Target, and it’s never an option that’s taken off the table. All purchases, no matter which category they’re in and no matter whether or not they’re already on sale or they’re full price, are eligible for the 5% off rate. This rate is taken at the register automatically when you swipe your REDcard. It might not seem like much, but it’s a $5 saving on every $100 purchase; that can add up significantly.

Extra Rewards

When you use the Target pharmacy and make purchases using any of your REDcards, you will also earn bonuses. When you fill five prescriptions and pay for them with any REDcard, you will then earn a 5% shopping reward to use at Target. And the best part about this reward is that it can be used with your regular 5% discount, which will give you additional savings on any purchase you make when shopping at Target. This is the kind of reward people love.

School Rewards

If you head to the Target website to sign up, you can give back to your favorite school each time you use your Target REDcard. All you have to do is sign up under your account and choose the school you want to donate to, and Target will donate up to 1% of each purchase you make to the school you chose. This might not seem like much off hand, but it’s actually a very big donation when you think about how much you spend at Target every year. Additionally, if others sign up to do the same thing for your favorite school, you are all participating heavily in the growth and financial success of the school and it’s educational endeavors.

Free Shipping

Another one of the amazing rewards that the REDcard offers to users is free shipping. It doesn’t matter how much you spend when you checkout at Target online, you will receive free shipping on your order; and that’s to the home, not just to the store. Free shipping is offered on all purchases, full price or sale, small purchases and large purchases. There is no minimum and there is no maximum. Additionally, free shipping is offered even on items that are considered heavy and often come with a large price tag for shipping. If you want faster shipping, however, you will have to pay out of pocket for that.

Lengthy Returns

Returning items that don’t fit or live up to your expectations is one of those things you just have to do from time to time. It happens; even though it’s a hassle and a royal pain to make returns or exchanges. Fortunately for those who use their REDcards to make purchases, you will get an additional 30 days on top of the original 30 days you have to return or exchange items at Target. You can certainly find the time to return or exchange your items within 60 days of purchase, can you not?

Other Factors

The Target REDcard credit card is only for those who have good credit. The annual percentage rate is approximately 22.99%, and that depends on your credit score, your credit history and the amount of credit you already have. You will be given a credit limit which can be decreased or increased at any time if Target finds reason to do so when periodically checking your credit score.

The REDcard debit card is one that anyone can apply for. This card is a debit card and it is used like a debit card. Your credit history is not taken into account when you apply for this particular card, but you will have to provide your banking information to ensure that you can use this card when making purchases at Target. If you haven’t any money in your bank account, you won’t be able to use it; you might be surprised how many people forget this simple fact.

See The Latest REDcard Promos Here

Photo by Justin Sullivan/Getty Images


Leave a Reply