Idea Transcript
About
Press
Contact
Write For UsAdvertiser Disclosure
AS FEATURED IN:
Topics
Banking
Credit Cards
More
Target REDcard Review – Debit Card With 5% Discounts at Target By Jason Steele
Share
Posted in: Shopping
Tweet
10
Pin
Comments
Search
JOIN 102,863 SUBSCRIBERS 188
AT A GLANCE
Sign up below to get the free Money Crashers email newsletter! Enter your email here Subscribe
Target REDcard Money Crashers Like Page
22k likes
Be the first of your friends to like this
277K VIEWS
11
Debit cards were in the news frequently this past year – often in a less-than-positive light – as numerous banks sought to impose fees for their use. Normally, a debit card is issued by the bank that holds your checking account, though this is not always the case. The Target REDcard is one such debit account set up via a retailer, rather than a financial institution.
Recommended
SHARES Facebook Tweet Pin LinkedIn
The Target REDcard functions as a debit card that draws funds from any checking account. It offers the same convenience as any debit card, while offering customers additional benefits, such as a 5% discount on most purchases. Below is more information on the top features and how it works.
Key Features Application Can Be Completed In-Store or by Mail. Applicants who apply in-store must provide a voided check. Otherwise, customers can print out and mail in their application. Direct Debit Features. Charges at Target are deducted directly from the cardholder’s checking account, regardless of bank or financial institution. Discounts at Target. When using a REDcard, Target customers receive a 5% discount on qualifying purchases. This includes most items, with some exceptions including gift cards, prescription drugs, and medical services. Free Shipping From Target.com. Cardholders are eligible to receive free shipping for online orders, with no minimum purchase requirement. No Annual Fee. There is no fee to use this card, though there are returned payment fees that vary based on the state in which the cardholder resides. Donations to Education. Target makes a donation to education equal to 1% of all REDcard purchases.
27 Best Travel Rewards Credit Cards – Reviews & Comparison
29 Best New Bank Account Promotions & Offers – Dec 2017
16 Best Cash Back Credit Cards of 2017 – Reviews & Comparison
19 Best Small Business Credit Cards – Reviews & Comparison
11 Best Ways to Make Money from Home (Legitimate)
Extreme Couponing 101: How to Extreme Coupon and Save 84%+ on Groceries
Advantages 1. Great Discounts. For regular Target shoppers, there are many savings to be realized by deducting 5% from all purchase prices. This is a true, immediate discount taken at the register, not cash back that must be claimed at some later date. 2. Free Shipping. Think of this like the paid Amazon Prime service, but free. However, unlike the Amazon program, there is no guarantee of two-day shipping. Online purchases can even be returned at a physical location, so feel free to buy shoes or clothing to try on at home. 3. Donations to Education. Target donates 1% of the amount of all REDcard purchases to the K12 school of your choice. 4. Extra Savings on Pharmaceutical Purchases. When you fill at least five prescriptions at a Target pharmacy, you receive an extra 5% discount for one day of Target shopping, in addition to your existing 5%. 5. No Potential for Debt. Many people avoid credit cards, including retail store-issued credit cards, after incurring costly debt. Debit cards are a fantastic alternative, as customers can only spend money that they already have in their accounts. 6. No Credit Check. No matter your credit history, nearly all applicants with a checking account are approved. 7. No Fees. There is no need to worry about monthly fees, annual fees, or charges for going below a minimum balance.
Disadvantages 1. Does Not Work at Target Mobile. Target has a cutting-edge product that offers discounts at the store and online. However, it does not offer a discount at Target Mobile. However, it would not surprise me to see this functionality added in the future. 2. Not Part of a Payment Network. Since it does not belong to a processing network such as Visa or MasterCard, this card can only be used at Target stores and at Target.com. 3. Cannot Be Used to Carry a Balance. I personally believe that this is a great feature; however, for those who need to carry a balance from time to time, this card will not be of any use. 4. Does Not Build Credit. There is no credit check necessary to receive this card, but use of this card will do nothing to improve your credit score.
Final Word Target is an innovative retailer, offering stylish goods at affordable prices. Likewise, its REDcard is a unique product that offers the ability to make purchases directly from a linked checking account. When you consider the significant 5% discounts and free shipping, it becomes clear that this is a worthwhile product. Considering that there are no costs or fees to use this card, it’s an easy choice for any regular Target customer to obtain the REDcard. Do you have experience with the Target REDcard? What additional advantages or disadvantages can you report?
VERDICT
Target REDcard Score: out of 5 stars
Related Articles The Way We Pay in America - Most Popular Payment Methods, Federal Reserve Payments Study 2010 PerkStreet Financial Review - Setting Themselves Apart with Cash Back Debit Card & Rewards Checking Discover Bank Review - Online Banking for Savings, Money Markets & CDs 13 Best Free Checking Accounts at U.S. Banks Difference Between Credit Cards vs Debit Cards - Which Is the Right Way to Go? Credit Unions vs. Banks - Differences, Pros & Cons
Facebook
Tweet
Pin
LinkedIn
Google+
StumbleUpon
Print
Email
Categories: Credit and Debt, Lifestyle, Reviews, Shopping
Jason Steele Jason has been writing about personal finance, travel, and other topics on blogs across the Internet. When he is not writing, he has a career in information technology and is also a commercially rated pilot. Jason lives in Colorado with his wife and young daughter where he enjoys parenting, cycling, and other extreme sports.
Comments Disclosure: The below responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Read More from Money Crashers TRAVEL
Best 41 Fun, Free or Cheap Things to Do and See in Boston, MA
LIFESTYLE
Is Zipcar Worth It? – Review, Membership-Based City Car Share Program
CREDIT CARDS
27 Best Travel Rewards Credit Cards – Reviews & Comparison
INVESTING
Top 10 Equity Crowdfunding Sites for Investors & Entrepreneurs
MONEY MANAGEMENT
6 Rich Celebrities Who Went Broke and Declared Bankruptcy
LIFESTYLE
10 Best Outdoor Adventure Vacation Destinations on a Budget
BANKING
13 Best Free Checking Accounts at U.S. Banks
Back to Top of Page
Copyright © 2017 SparkCharge Media, LLC. All Rights Reserved.
About · Press · Contact · Archive · Privacy Policy · Terms & Conditions The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.