Credit Card Forum
  1. #1
    Administrator
    Join Date
    Mar 2008
    Location
    Austin, TX
    Posts
    111

    Question Is the Target credit card application a bad idea?

    You can apply for a Target credit card online or at their store. But before you fill out an application in 2014, read this review.

    Fine print on the rewards?
    The card from Target is touted as a way to save 5 percent every time you shop at their stores. This is much better than their old REDcard which gave 10 percent off for one day after your application was approved.

    So 5 percent sounds great, right? Is there any fine print behind it? I read the fine print on the Target 5 percent discount program and here are the exclusions:
    • Gift and prepaid cards
    • Prescriptions, optical, and clinic services
    • “Target Mobile” purchases
    • “Target Commercial Interiors” purchases
    • Shipping and gift wrapping

    Conclusion? The Target REDcard's 5 percent discount exclusions seem to be quite reasonable and straightforward. I don't see any tricks buried in the fine print or anything else. This is definitely a competitive program when compared to other 5 percent cash-back credit cards.

    Since the Visa version from Target is no longer available, you will want to have a Visa or MasterCard from another issuer that has a good rewards program.

    Going back to the review of Target REDcard, here's what else there is to know about it...

    From bad to good?
    Before the Great Recession, they offered two different cards; a store-only version and a Target Visa credit card. Due to their poor rewards and rampant customer service complaints, they were two of the worst credit cards on the market.

    But a couple years ago they totally re-vamped their program. They dropped the Visa card and bolstered the rewards on their Target REDcard to offer a 5 percent discount on purchases at Target. So it went from being bad to good.

    However there is a big catch. Since the Target Visa has been discontinued, the only version available is the REDcard for store purchases. That means it can't be used outside of Target stores and its website. So your account is of very little use since it's only good at one place.

    Fees and interest rates?
    The credit card from Target has no annual fee and as I write this review, the only interest rate listed on the application is 22.90 percent.

    inside of Target department store
    Unfortunately giving everyone that same rate of 22.90 percent is a worse arrangement than what they were previously offering in 2011, which was the different tiers of 13.25 percent, 17.25 percent, or 22.90 percent (depending on the applicant's credit). Now, the application makes no mention of those two lower tiers.

    Credit score requirements?
    Target National Bank (the issuer) got burned pretty badly during the economic downturn, which is rumored to be the main reason they discontinued the Target Visa credit card.

    Although they don't publicly disclose the credit score qualifications needed to be approved, according to customer reviews it sounds like the card can sometimes be hard to get approved for... so beware if you have a history of recent bankruptcy or charge-offs. When it comes to store charge cards, this is probably one of the harder ones to qualify for. I've heard they reportedly pull from Equifax (instead of the other two credit bureaus) when reviewing an app.

    Has the customer service been improved?
    The verdict is still out on this one. There are a ton of Target credit card complaints from the past but the new card seems to have less so far.

    But you should know that back in 2012 they sold their credit card business to TD Bank, who is now the issuer/manager of accounts. So you will be dealing with a third-party when you call customer service, unfortunately.

    2014 verdict?
    So should you apply for the REDcard now that the rewards have been improved? Well, I would say for the first time in years, this card is actually a good idea if you frequently shop at Target. There is a credit card application online. Then of course you can always apply in-store.

    However one thing to be aware of is that there seems to be quite a few complaints online about the credit limits being low (as little as the low hundreds) even for people who allegedly have great credit scores. If true, I wouldn't be surprised considering it's a store card. But it's still something to keep in mind as a low limit may make it more difficult to maintain a low debt-to-available-credit ratio (which is important if you want to have a good credit score).
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  2. #2
    Centurion Member
    Join Date
    Jun 2011
    Location
    Down South
    Posts
    1,587

    Default

    I think I will stick to buying target gift cards using 5% and other cash back cards at the grocery store. If I get the BCP from Amex, I'm in very good shape.
    Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
    Plane tickets: CSP
    Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
    Clothes: Express, Amex BCP, Discover IT
    Amazon: Citi Forward, Cash +
    Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
    Hotels and other travel: Discover Escape, CSP
    Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
    Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
    Balance transfers: Kroger 123 rewards
    Bill Pay: Chase Ink Plus, Citi Forward
    Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  3. #3
    Centurion Member
    Join Date
    Jul 2011
    Location
    New York
    Posts
    1,341

    Default

    I just use the Target debit card. Works great, 5% (pretax) off everything, no lame credit line I can only use with one merchant.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  4. Centurion Member
    Join Date
    Jun 2011
    Location
    Down South
    Posts
    1,587

    Default

    What are the requirements for it?
    Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
    Plane tickets: CSP
    Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
    Clothes: Express, Amex BCP, Discover IT
    Amazon: Citi Forward, Cash +
    Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
    Hotels and other travel: Discover Escape, CSP
    Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
    Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
    Balance transfers: Kroger 123 rewards
    Bill Pay: Chase Ink Plus, Citi Forward
    Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  5. #5
    Centurion Member
    Join Date
    Apr 2012
    Location
    Miami, FL
    Posts
    181

    Default

    Their card also gives free shipping on online purchases from target.com
    Amex: Business Platinum (09/12) BCP $10,500 (03/13)
    Visa: Capital One Journey $750 (04/11) Chase Freedom $1,800 (04/12)
    MasterCard Citi AAdvantage Platinum Select $8,500 (05/13)
    Discover: Discover It $2500 (07/11)
    Store Cards: Amazon $3900 (12/11) Macy's $500 (04/11) Kohl's $500 (05/12) Victoria's Secret $750 (11/12)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  6. #6
    Green Member
    Join Date
    Jul 2012
    Location
    Austin, TX
    Posts
    3

    Default

    Quote Originally Posted by FutureBillionaire View Post
    What are the requirements for it?
    Just bring a blank/canceled check into a store.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  7. #7
    Gold Member
    Join Date
    Dec 2013
    Location
    Texas
    Posts
    35

    Default

    I agree that it is very difficult to obtain but then again when I applied I only had my wimpy 1fbusa card and they didn't see more than one revolving credit account on my record.

    Yeah, the 5% doesn't apply to the things that you listed out. But if you think about why the 5% doesn't apply towards GCs, it makes sense. If you use the Target RedCard cc for online shopping, you'll get free (economy?) shipping.

    In my experience, Target has pulled Equifax and TU but never Experian.

    In response to Davrax, to get a RedCard cc, that's not correct; however, that is the correct way to obtain a RedCard Debit Card.
    Cards:
    1FBUSA -- 3.25k
    Discover IT (for students) -- 2k
    Chase Freedom - 1.4k
    UTL ~ 2.03%

    FICOs:
    Experian - 743 (May 2014)
    TU - 744 (May 2014)
    Equifax - 728 (Jan 2014)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

  8. Centurion Member
    Join Date
    Mar 2013
    Location
    Gautier, MS
    Posts
    126

    Default

    I really like my Target card but I also shop there a lot. Cant beat saving 5%
    American Express Blue Cash Everyday $10,000
    Delta Gold Skymiles $9,900
    Discover IT $7,800
    Chase Sapphire Preferred $6,500
    Chase Freedom $4,500
    USAA Cash Rewards $4,000
    Zales $4,000
    Chase Amazon $1,000
    Target $800
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!

Closed Thread
 
These forum posts are not provided or commissioned by the bank advertiser. Posts 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.
Advertiser Disclosure: The credit card offers that appear on this site are from credit card issuers from which CreditCardForum.com receives compensation. This compensation may impact how and where products appear on this site, including the order in which they may appear within listing categories. CreditCardForum.com does not include all credit card offers that might be available to consumers in the marketplace.