Target RedCard Credit vs Debit: What you need to know and how to sign up

Target is one of the country’s largest retailers, both online and in-store. The company has long offered a credit card for its frequent shoppers, but many might have avoided it due to not wanting another ding on their credit score. However, these days, you can choose between a RedCard credit card or a debit card, and both share the same major benefits. Not sure whether the Target RedCard credit or debit is the best choice? Keep reading to find out the details on both offerings.

Every Target shopper should have a RedCard

Target’s RedCard offers quite a few fantastic features, like 5% off all purchases, free 2-day shipping, and more. If you frequently shop at Target, just having a RedCard can save you hundreds per year with the 5% alone, but Target also has RedCard exclusive offers in its app that are super easy to access. My wife and I always scan everything we buy with the app prior to checking out, as it’ll automatically “clip” the digital coupons for any eligible product, with some being exclusive savings since we have a RedCard.

You can save 5% at all Target locations + more

The 5% you save isn’t limited at Target in any way. In fact, 5% is the minimum you’ll save on purchases. If you shop clearance, you’ll save 5% there (sometimes you’ll even get an additional 5% off, too.) At Starbucks, you’ll get a 5% discount when you check out with RedCard. Picking up a gift card for travel, movie night, or something else? Yep, it’ll be 5% off just the same. Target offers 5% off everywhere, including its same-day Shipt delivery service.

I live in a 3rd-floor apartment, so buying groceries (and carrying them upstairs) can be a hassle. My wife and I chose to use Shipt (Target’s same-day delivery service) after we signed up for a RedCard, and have been super happy with it. Not only do we save 5% on every purchase, but since Target owns Shipt, there are no additional fees on any order, and you can still use Target Circle discounts as well.

Target also often offers many RedCard Exclusives, which at the time of writing include an extra 5% off a purchase, an extra 5% off Target Optical, 10% on Hotels.com purchases, and an additional 10% off your Anniversary (cardmember anniversary, that is.) The savings are endless at Target once you sign up for RedCard, so it’s something that I recommend highly to anyone who shops at Target.

Longer return times and free 2-day shipping at no additional charge

Using a Target RedCard means you’ll get more than just 5% off your purchase. That’s right, just using a RedCard gives you longer return times (an additional 30-days) as well as free 2-day shipping on “hundreds of thousands of items at Target.com” While Amazon charges monthly or yearly fees for its Prime membership, which gives you access to its free 2-day (or sometimes 1-day/same-day) delivery service, Target just requires that you have its RedCard to save big on shipping. This is a simple, but fantastic feature that all RedCard owners will benefit from, without the need of paying over a hundred dollars per year.

What’s the difference between Target RedCard credit and debit?

You might ask yourself “Which Target RedCard should I get?” considering there are both credit and debit offerings. Truthfully, the debit is the better card to get, in my opinion. Target breaks down the features of both the credit and debit cards. Here’s what both the credit and debit cards offer:

• 5% off every day at Target and Target.com
• No annual fee
• Free 2-day shipping on hundreds of thousands of items
• RedCard Exclusives including special items, gifts, and offers
• More return time — get an additional 30-days for returns or exchanges

However, should you opt for the debit card, you’ll also get:

• Linking to your existing checking account (purchases take 2-3 days to process generally)
• Cash withdraw of up to $40 at checkout

Do keep in mind that applying for the Target RedCard Credit Card means that you’ll have a full-on credit card, with a purchase limit and minimum payments, as well as a ding on your credit score. Opting for the RedCard Debit Card means you’ll negate the credit score impact and have the ability to essentially spend whatever’s in your checking account. This might be dangerous for some, but it also helps to keep in check what you’re spending as you only can spend as much as is in your account.

In the end, we’d recommend opting for the debit card here, as it gives the same benefits as the credit version and more.

How to sign up for Target RedCard

You’ll sign up for Target’s RedCard credit and debit at the same places: either online or in-store. Right now, Target is offering $40 off a future purchase of $40 or more when you sign up for the RedCard either online or in-store. Just visit this landing page to view all of the information for both cards and to follow the sign-up procedure.

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