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The Target Circle™️ Credit Card, previously known as the Target RedCard, stands out as one of the top store credit cards available within the U.S. This card is tailored to Target enthusiasts and offers shoppers instant savings on their purchases, unlike many other best credit cards that require spending to earn rewards.
It's worth noting that the Target Circle Card name refers to several options within the program including a debit card, two credit card versions, and a reloadable funds account. This review focuses on the credit card version, the Target Circle™️ Credit Card (previously known as the Target RedCard).
Is the Target Circle™️ Credit Card for you? Read our credit card review to find out more.
Best for 5% discount at Target
Target Circle™️ Credit Card
Insider’s Rating
3.8/5
Perks
Earn 5% back at Target and Target.com. Earn 2% on dining and gas purchases. Earn 1% everywhere else outside of Target.
Annual Fee
$0
Intro APR
N/A
Regular APR
29.95%
Intro Offer
$50 credit for a qualifying Target purchase over $50 when you are approved
Get a $50 credit
Recommended Credit
Good to Excellent
Pros
- 5% instant discount on most Target purchases
- Exclusive Target benefits including free two-day shipping
- No annual fee
Cons
- High APR
Target Circle™️ Credit Card Overview
What is the Target Circle Card?
The Target Circle Card is a no-annual-fee credit card that offers cardholders an instant 5% discount on all eligible Target purchases. It can be a fantastic choice for anyone who does the majority of their shopping at Target, which is known for having almost everything you could ever need.
Like many other store credit cards, it has a high interest rate, so it's not a good choice for anyone who carries credit card balances. But the savings can add up if you spend a significant amount at Target, and can pay off your card balance on time every month.
Target Circle Card: Debit vs. Credit?
Confusingly, the Target Circle name can refer to several versions of the loyalty program:
- A closed-loop Target Circle Cardthat can only be used at Target
- A Target Circle credit card that can be used anywhere that accepts Mastercard
- A debit card
- Or a reloadable account called the Target Circle Card Account
This review covers the Target Circle Card and the Target Mastercard, which are issued by TD Bank and require a hard credit pull for approval.
The debit card version of the Circle Card links directly to your checking account and does not require a credit check.
The discount and no-annual-fee benefits mentioned below apply to both debit and credit versions of the Target Circle Card.
5% Discount
The 5% discount on nearly all Target purchases is the primary benefit of joining the Circle Rewards Program. The discount is automatically applied to nearly all Target purchases, whether your purchases are in-store, online, or even at Starbucks locations inside Target.
No Annual Fee
None of the Target Circle Card versions carry an annual fee.
Target Circle Card Rewards
Welcome Bonus
New cardholders of the Target Circle Card, Target Mastercard, or Target Circle Debit Card can get a $50 credit for a qualifying Target purchase over $50 when you are approved.
Once approved for the card, you'll receive any applicable rewards in the mail. To redeem, upload the coupon to the Target app and use it within 30 days. The welcome bonus amount varies from time to time, depending on the promotion of the moment.
The coupon comes with a lengthy list of exclusions, such as Apple products, dairy milk, gift cards, PlayStation products, and more. Despite these limitations, Target's vast selection of items makes it easy to benefit from this offer with little effort.
How to Earn Rewards With the Target Circle Card
Unlike traditional rewards cards that offer points or cash back, the Mastercard version of the Target Circle Card provides an immediate discount on eligible purchases — great for those who prefer straightforward savings without the hassle of tracking rewards.
Target Circle Cardmembers earn rewards at the following rates per dollar:
- 5% off at Target and Target.com (including eligible gift cards and purchases made at Starbucks located inside Target)
- 2% toward a Target GiftCard on dining and gas purchases
- 1% toward a Target GiftCard on all other purchases
How to Redeem Rewards With the Target Circle Card
Saving 5% on Target purchases with the Target Circle Card requires no additional effort. The discount will automatically apply to your final balance when you use the card to pay for your Target purchase in-store or online. However, using the rewards you earn from the other bonus categories can be more complicated.
Cardholders must earn a minimum of $10 to redeem their rewards. From there, you have to go online or call Target to request an electronic or physical gift card for use at Target; you can't claim the rewards as a statement credit, which would be far more convenient.
While rewards don't expire, Target states that if your account is closed for any reason, you will have 135 days from the date the account was closed to redeem them.
Target Circle Card Benefits
The benefits on this card vary slightly depending on the version you select.
RedCard Credit Card Benefits
- 5% off Target purchases
- Extended returns (30 extra days)
- Free 2-day shipping on most items
- Exclusive special offers and early access to sales
RedCard Debit Card Benefits
- Same benefits as the credit card
- No credit check required
- Links to your existing checking account
Target.com Shipping Benefits
Target Circle Card cardholders get free standard shipping on most items and free two-day shipping on eligible items at Target.com. This may not be as valuable as it seems. That's because Target offers free standard shipping on all orders over $35 and free two-day shipping on select items, even if you don't have a Target Circle Card.
Essentially, the only increased shipping benefit you get from being a Target Circle Card cardholder is that you don't have to spend $35 to get free shipping. The perk is less enticing, given how easy it is to meet that spending threshold when shopping at Target.
Exclusive Offers and Benefits
Cardholders will have access to special offers, such as gifts and early access to promotions. If you can take advantage of them, these benefits can certainly increase the value of having a Target Circle Card.
Extended Returns and Exchanges
When you use your Target Circle Card for purchases at Target stores or on Target.com, you have an extra 30 days to return your items in addition to the standard return policy. This gives you more flexibility and peace of mind when shopping at Target.
Who Should Get the Target Circle Card?
The Target Circle Card is ideal for:
- Frequent Target shoppers who can take advantage of the 5% discount and other perks
- Those who pay off their credit card balance in full each month to avoid high interest rates
The Target Circle Card is not ideal for:
- Those who rarely shop at Target
- Individuals who tend to carry a balance on their credit cards
Which Version of the Target Circle Card Should You Get?
If you know you want a Target card but can't decide between the two, here are some factors to consider.
Do you need to avoid a credit pull?
If you plan to apply for credit such as a mortgage, loan, or credit card in the near future, you may want to choose the Target debit card to avoid incurring a credit pull. While the impact of a credit card inquiry is relatively low, it still appears as recent credit activity on your credit report and can impact a lender's perception of your creditworthiness.
Do you want to earn 2% cash back on gas and dining?
You'll only earn 2% cash back on gas and dining if you apply for the credit version of the Target Circle Card (formerly called the Target RedCard). But our guides to the best credit cards for dining and restaurants or the best credit cards for gas purchases can introduce you to a slew of options that would earn better rewards on these two categories of spend.
Target Circle CardFees
Annual Fee
The Target Circle Card is a no-annual-fee card, making it easy to carry year after year.
APR
Like many store credit cards, the Target Circle Card comes with a high interest rate of 29.95% APR. Because of this, it's not for people who tend to carry a balance, since any value you're getting from the card's discounts will be negated by the interest you'll pay. This card also doesn't offer a zero-interest introductory period.
Other Fees
As with most credit cards, you'll incur fees for cash advances, late payments, and returned payments on the Target Circle Card.
How to Maximize Your RedCard Benefits
The best way to maximize your Target Circle Card benefits is by using the card for 5% back whenever you shop at Target.com, in-store, or spend at a Starbucks located inside a Target store.
Compare the Target Circle Card
While the Target Circle Card can make a lot of sense for those who shop regularly at Target, other rewards cards could better fit your spending habits and financial goals. Here are some alternatives to the Target Circle Card (formerly the Target RedCard):
Target Circle Cardvs. Amazon Prime card
The Amazon Prime card requires an Amazon Prime membership to maximize benefits. Right now, just in time for Amazon Prime Day, new Prime Visa cardholders can $200 Amazon Gift Card instantly upon approval exclusively for Prime members. That benefit alone is a better deal than the Target Circle Card offers.
Amazon Prime card cardholders also earn 5% back on Amazon, Whole Foods Market, and Chase Travel purchases; 2% back at restaurants, gas stations, local transit, and commuting (including ride-hailing); and 1% back on all other purchases. Furthermore, Amazon Prime card cardholders can earn between 10% to 25% off on eligible rotating categories on Amazon.com.
Like the Target Circle Card, the Amazon Prime card doesn't charge an annual fee. But the Amazon Prime card's bonus categories are slightly broader than those on the Target Circle Card, so it's the better choice if you shop more regularly with Amazon than Target.
Read more in our Amazon Prime Visa review.
Target Circle Card vs. Citi®Double Cash Card
If you're looking for a card that earns straightforward rewards on all purchases — not just those made at Target — take a good look at the Citi®Double Cash Card.
This card effectively earns 2% cash back on all purchases: 1 point per dollar when you make a purchase, and 1 point per dollar when you pay it off. You won't have to limit your shopping to Target to earn the best rates; you'll be rewarded regardless of where you spend, which is why it's on our list of the best 2% cash-back credit cards.
Currently, new Citi®Double Cash Card applicants can earn $200 cash back, fulfilled as 20,000 ThankYou® Points, after spending $1,500 on purchases in the first six months of account opening.
Read more in our Citi Double Cash Card review.
Target Circle Card vs. Chase Freedom Flex®
Another card that often provides more value for most cardholders is the Chase Freedom Flex®. This card earns 5% back on Chase's quarterly bonus categories, which occasionally include Target purchases.
You'll also earn 5% back on Chase Travel, 3% back on dining and drugstore purchases, and 1% on all other purchases, making it a more well-rounded option for your wallet than the Target Circle Card.
Additionally, the Chase Freedom Flex® offers a generous welcome bonus: $200 cash bonus (received as 20,000 bonus points) after spending $500 on purchases in the first three months from account opening. Taking the welcome offer and varied bonus categories into account, it's easy to see how this card provides lue for most shoppers.
Read more in our Chase Freedom Flex review.
Target Circle Card Frequently Asked Questions
Is the Target RedCard the same thing as the Target Circle Card?
Yes, the current Target Circle Card replaced the Target RedCard. As with the RedCard, Target offers both a debit and a credit version of the Circle Card.
Does the Target RedCard affect my credit score?
Yes, applying for the credit card version of the Target Circle Card will impact your credit score. If you opt for the debit card version, your credit score will not be impacted.
Can I use my RedCard at other stores?
Yes, you can use your Target Circle Card, previously called the Target RedCard for purchases outside of Target. If you use the credit card version, you'll earn rewards at different rates depending on where that spending occurs.
How do I apply for a RedCard?
You can apply for the Target Circle Card online or in-store at a Guest Services counter.
Is it good to have a Target Circle Card?
Having a Target Circle Card is good if you're a die-hard Target shopper. That's because you'll be able to save 5% on all Target purchases. However, if you spend regularly at other stores, you'll likely fare better with a different cash-back credit card.
What credit score do you need for a Target Circle Card?
Approval for the credit version of theTarget Circle Card typically requires good to excellent credit, which is considered having a good credit score of 690 or higher. That said, other factors beyond your credit score will be taken into consideration for approval, including your income and other financial details.
Is the Target Circle Card an actual credit card?
Yes, the Target Circle Card is a credit card. However, there are also debit and reloadable versions of the Target Circle Card. Our guide highlights the benefits and drawbacks of each card to help you decide which one is best for you.
Why You Should Trust Us: How We Reviewed the Target Circle Card
We pitted the Target Circle Card against similar rewards credit cards and compared various factors, including:
- Annual fee — Do the card's rewards and benefits make up for the annual fee?
- Benefits — How do the card's perks stack up against similar cards?
- Rewards potential — Are the bonus earnings categories useful and varied? Are any of them capped at a certain amount of spending?
- Ease of use — Is it easy to earn and redeem your rewards from this card?
To learn more about our review methodology, check out how we rate credit cards at Business Insider.
Meghan Hunter is a personal finance and travel expert who has been writing about travel, credit cards, and miles and points since 2015. Previously, she worked as a writer and editor at Million Mile Secrets and The Points Guy. She covers travel, credit cards, and travel insurance for Personal Finance insider. Beyond travel, she's passionate about real estate investing and encouraging women toward financial independence. When she's not writing or editing, you can find her looking for her next investment or reviewing her retirement goals. Meghan lives in Portugal with her adventure-loving daughter.
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Angela Fung is the Compliance Manager for Business Insider'sPersonal Financedivision, overseeing a team that ensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The compliance team's mission is to maintain reader trust by confirming stories are fact-checked and current so that readers can make informed financial decisions. The team also works to minimize risk for partners by maintaining clear, precise language that is compliant with regulatory and partner marketing guidelines that align with the editorial team.
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