Target's RedCard: What You Need to Know

Target Corporation’s RedCard program is a leading loyalty program among retailers in the United States. The program is accessible to everyone and is integrated seamlessly into customers' payment methods.

With lower barriers to entry than other loyalty programs, Target tries to build a relationship with its customers and can personalize the promotions and advertising offered to the consumer with this card.

Target’s RedCard comes in three forms: a Mastercard (open loop card), an in-store-only credit card, or a debit card. The debit card is linked to customers' existing checking accounts, and for the in-store card, users can charge in-store purchases or buy online with the credit card at Target.com.

The Target-branded Mastercard can be used anywhere that accepts Mastercard. In this article, we are primarily discussing the Target RedCard debit card and in-store credit card, not the Mastercard.

Features of the Target RedCard

All Target cards offer 5% off purchases every day at in-store and online locations and free two-day shipping on most items. Users also have an extended return facility giving them 30 extra days to return products to Target or Target.com. However, RedCard extended returns do not apply to the following:

• Target Optical purchases
• Non-returnable items
• Contract mobile phones
• Online purchases of Supplemental Nutrition Assistance Program (SNAP) eligible
  items using both Electronic Benefits Transfer (EBT) and a RedCard for
  payment.

The Target RedCard has a late payment fee of up to $41 and a return payment fee of up to $30. Customers looking to combine the benefits of the RedCard with a more traditional credit card can sign up for a Mastercard Incorporated RedCard through TD Bank, USA.

What's in It for Target?

Most companies use loyalty programs to collect customer data in addition to building loyalty among patrons. Target’s data collection system is thorough.

Every purchase, email, or phone call is tracked, and data is applied to algorithms for marketing and planning purposes. By collecting data, the company can personalize deals and discounts for its shoppers.

How Can I Get a Target RedCard?

You can get a Target RedCard by applying online for one. The RedCard credit application is on the Target.com website. You must verify your employment and income and review the terms.

You may be approved to shop online instantly, or you may have to wait for seven to 10 days to get your card, depending on whether Target approves you automatically.

The website isn't 100% clear on how long it may take to be approved for either RedCard if you are not automatically approved. If you are not approved it may be due to red flags on your credit report or a low credit score.

Like any credit card, you have to meet certain requirements to be approved for a new credit card. If you apply and are not instantly approved, you may get a notice that your file is "in review."

The Bottom Line

Target's RedCard can be used for both in-store and online ordering for user convenience. Once a customer is signed up, Target begins to collect data from that individual's profile. The program is appealing to shoppers because it provides generous discounts and community donations.

However, users should be aware of the high interest rate and the late payment fees, which could cause debt to mount if the balance is not paid off each month.