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3. Target Circle™ Card review: Does it hit the bull’s-eye for frequent shoppers?

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143

reviews

3

Rating: 3 out of 5.

Annual Fee: $0

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Here’s the average credit limit of members who matched their Target Circle™ Card or similar cards.

% of members by credit limit range

The average credit limit for members who have matched with this card or similar cards is $2,716, with $300 being the most common.

Here’s the average credit score of members who matched their Target Circle™ Card or similar cards.

% of members by credit score range

The average credit score for members who have matched with this card or similar cards is 668, with 817 being the most common. Note this is just one of the deciding factors when it comes to getting approved.

Member stats

Updated daily

38.4%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

47 years

Average age of members who matched this card or similar cards.

$91,264

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Pros and cons

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5% discount on all eligible purchases at Target and Target.com

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Free shipping on eligible online orders

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Extended returns for both in-store and online orders

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High variable APR on purchases

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Can’t be used at other stores

What you need to know about the Target Circle™ Card

The Target Circle™ Card (previously the Target RedCard™) is a rewards credit card that can only be used in Target stores or on Target.com. While opening a retail card can often be a risky decision, the benefits that come with this one make it worth considering for frequent — or even occasional — Target shoppers.

5% discount on Target purchases

The headline feature of the Target Circle™ Card is its 5% discount on eligible Target transactions, both in store and online.

That’s a rate you usually only see from bonus categories on certain cash back credit cards. Plus, Target’s rate is a true discount on your purchase, not cash back that can be redeemed only as a statement credit or deposit.

There are other opportunities to save with the Target Circle™ Card, too. The 5% discount can be used together with the Target Circle rewards program, which allows customers to save 5% to 50% on hundreds of items by simply scanning a barcode at checkout. And Target Circle™ Card cardholders can combine the 5% Target Circle™ Card discount with other deals, including other types of in-store coupons and discounts.

But keep in mind that there are a few exceptions to the 5% discount, including prescriptions, Target Optical eye exams (though glasses and contacts do qualify for the discount), and Target gift cards and prepaid cards.

Free shipping

With the Target Circle™ Card, you can get free two-day shipping on eligible items bought on Target.com. While you can already get free shipping on the site when you make purchases of $35 or more, using the Target Circle™ Card removes the spending minimum.

Not all items are eligible for two-day shipping on Target.com. Eligible items will be noted on the product-detail page, in your cart and at checkout. But whether your purchases are eligible for two-day shipping or not, most everything that you buy online with the card ships free.

Extended returns

Target Circle™ Card cardholders get an extra 30 days to return items they purchased at Target or on Target.com. While this perk is nice to have, it’s worth remembering that Target’s standard return policy is already generous at 90 days.

For big-ticket items, though, that extra 30 days could add some peace of mind to your purchase.

Extra perks

There are a few more benefits that Target offers exclusively to cardholders.

• Anniversary coupon: Each year on your cardmember anniversary, you’ll receive a 10% discount to use in store, as long as you’re subscribed to Target’s marketing emails.
• Discount at Starbucks: You’ll also get a 5% discount at in-store Starbucks locations.
• Discount on Target subscriptions: Add an extra 5% to Target’s standard 5% discount on subscriptions.

While none of these benefits may make a big difference individually, together they add up to a nice collection of perks.

High interest rate

While the Target Circle™ Card has no annual fee, it does come with a high interest rate on purchases — the variable purchase APR currently sits at 22.90%.

If you plan to carry a balance, then this probably isn’t the card for you. If you carry a balance with the Target Circle™ Card, your interest payments might end up canceling out whatever you get in savings.

Keep in mind that Target also offers a debit card version of the Target Circle™ Card with many of the same benefits as the credit card.

Who this card is good for

If you spend a few hundred dollars at Target every year, you’re likely to get meaningful value from the Target Circle™ Card. The 5% discount on eligible purchases you’ll make at the store provides a clear benefit, and the card is easy to use. Unlike many other store cards, you don’t have to worry about tracking complicated rewards systems — you’ll see your savings when you pay. In fact, the 5% discount is so nice that even occasional Target shoppers may find value in this card.

But if you don’t have a Target near you or simply don’t like to shop there, then you might want to stay away from the card. Also, if you don’t shop often or simply don’t want to carry around another card, you may want to pass.

More than anything, though, the Target Circle™ Card probably isn’t going to be the right choice if you plan to carry a balance. The interest rate on purchases is high enough to cancel out any savings you might get from the 5% discount.

Not sure this card is for you?

• Capital One Savor Cash Rewards Credit Card: This card could be a good option if you want to save on many different kinds of purchases with no annual fee.
• Amazon Prime Visa: If you prefer to do most of your shopping online, this card could be a good choice.
• Costco Anywhere Visa® Card by Citi: This card could be a good option if you fill up your gas tank often.