bank rates

Card Rewards 5% Off All Target Purchases

Target REDcard carries a 22.9% APRIf you’re planning to shop at Target this holiday season, the REDcard can save you a lot of money — provided you don’t ever carry a balance.

Rolled out for the 2010 holiday shopping season, Target has added a new feature this year that gives you even greater savings on top of your discount: free shipping.

You still get 5% back on every purchase you make in a Target store or at That’s like getting 5% cash back, except you get the reward automatically and immediately at the checkout.

Here’s a quick look at the credit card details:

APR 22.9% variable (prime rate of 3.25% plus 19.65%)
National Average APR 14.99% (Source:
Annual Fee None
Rewards Automatic 5% discount on all purchases at Target stores and; free shipping on all online purchases; 5% discount coupon when you fill five prescriptions at Target pharmacy.
Verdict We don’t normally recommend cards that come with such a high APR (and store credit cards often do), but the savings on this card are too good to pass up, especially during the holiday shopping season. Just make sure you pay your bill in full each month to avoid finance charges.

This year the card has an additional benefit. Now when you use your REDcard at, not only do you get a 5% discount, but all your purchases ship for free, with no minimum purchase size.

Without the card, you’d have to spend at least $50 to get free shipping.

When you enroll in the Target Pharmacy Rewards program and use your REDcard to fill five prescriptions at a Target pharmacy, you’ll earn a rewards certificate worth 5% off a day of shopping at Target. That’s in addition to the 5% off you get by paying with your REDcard.

The Target pharmacy rewards program does carry some restrictions. For example, it’s not valid in New York or New Jersey. Purchases of prescription drugs paid for in whole or in part by a government program, such as Medicare or Medicaid, don’t count toward a rewards certificate.

The Target REDcard can only be used in Target stores or on its website.

If you already have a Target store card, a Target Visa card (which has been discontinued) or a Target debit card, you don’t have to do anything to enroll to get the savings. However, you can’t use a Target debit card to pay for website purchases.

While the 5% discount and free shipping are certainly attractive, you don’t want to carry a balance on this card because of the steep 22.9% APR. So make sure you pay off your balance in full each month.

You can also help out your school by using the card.

When you enroll your school in the free Take Charge of Education program, Target will donate 1% of your REDcard purchases to that school. Just contact Target either online or by phone to register.

You can apply for this card at

Compare the REDcard with the credit card offers in our extensive database.

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Comments (1)
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One Existing Comment
  1. Sooz said:
    on November 17th at 03:13 pm

    While I know their intent is ultimately evil (as in putting more money in their pocket than mine), I can see where this would be a good deal if you watch your P’s and Q’s.