There was a time when Target relentlessly pushed customers to sign up for its VISA card every time they passed through a check-out line.
But offering all of that easy credit cost Target a fortune when the recession hit (nearly $900 million in losses over the past two years) and the default rate soared.
Target was not only saddled with losses on all the stuff its cardholders bought at its stores, but all of the stuff they bought at competing stores, as well.
Its initial response was to jack up everyone’s interest rates.
Now Target says it’s going to stop issuing new VISA cards and go back to just offering traditional store cards that can only be used for purchases at its locations and Target.com.
If you already have a Target VISA, you can continue to use it.
But if you’re still paying 22% APR or more on your account, you might want to ditch it before Target decides to get out of the bank card business altogether and ditches you.