I’m not normally a fan of store credit cards, but I recently looked into the Target REDcard, and I have to say that it looks quite good. This past weekend, my wife and stopped in at our local Target store for some early Christmas shopping. While there, I picked up a pamphlet about the REDcard and gave it a quick once over.
Hmmm… Not too shabby. Yes, it’s a store-branded credit card, but it’s an actual Visa card that you can use anywhere you please. On top of that, you get 5% cash back on all Target purchases. And for every five prescriptions you buy with it (from the Target pharmacy, of course) you get an additional 5% at Target for an entire day.
The Target Visa is not to be confused with the Target Credit Card, which can only be used at Target, but still offers the cash back rewards. Interestingly, they also offer a debit card that you can link directly to your checking account. This debit card can likewise only be used at Target, and it also qualifies for the 5% cash back rewards.
The primary downside to the REDcard is that you don’t earn rewards anywhere else. Thus, this card probably only makes sense if you’re going to carry it alongside another “general purpose” reward credit card. Given that I’ve been trying to simplify our financial life, that makes it significantly less attractive to me.
Ultimately, I decided to pass on this card. We just don’t shop at Target often enough to make it worth keeping track of another credit card bill every month. While we could use the debit card to get the 5% discount without generating another bill, I’m not crazy about the idea of linking a third party debit card to our checking account.
What about you? Are you interested in this sort of targeted (no pun intended) reward card? Or would you prefer to just carry a single, general purpose reward credit card?