Hey, I’m Todd, Here I am offering a review of the Target Red Cards. So, there are two Target RedCards, there is a Target credit card, and there is a Target debit card.
Both of them permanently work the same way in terms of the rewards they give, but obviously, there are differences between credit and debit, so we’ll talk about the sort of features first, and then I’ll talk a little bit about which one you might want to choose, depending on how you spend and what your comfort level is with having credit versus debit and all that kind of thing. So the prominent feature of the Target Red Cards is the fact that you get 5% off of all your Target purchases — or at least almost all your Target purchases.
Target Red Card
You get 5% off pretty much anything that you buy at Target other than things that are in the pharmacy, and you don’t get your 5% off Target gift cards for whatever reason — maybe because they don’t want you to buy them and resell him on the Internet. Otherwise, you’re going to get 5% off pretty much everything, including Starbucks, if it is inside a Target store. There are also other features. You’ll get 15% off subscriptions to baby items, including diapers, baby wipes, and formula. A subscription is, you know, if you set up a regular schedule where you’re going to have those items sent to you. You know basically… you commit for some time that you’re going to continue to buy those, then you can use your Target Red Card on those, and you can get 15% off. You’ll have various coupons and cardholder only events and all that sort of thing. That’s pretty much what it is.
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There are pretty decent features, the big one is being the 5% off. If you don’t have one of the Target Red Cards, then you’re paying five percent more then everybody else that does have a Target Red Card, so for us, that’s kind of a no-brainer. You want that five percent off, so it makes sense to get that card if you’re a frequent Target shopper. Now the big question I think is: should you get the Target Red Card credit card, or should you get the Target Red Card debit card? And in our opinion, we are more inclined toward the credit card if you are pretty good about always paying off your credit card bills every month.
As it does have a high-interest rate of 25.14%, now obviously, if you pay off your credit card bills in full every single month, the interest rate doesn’t matter to you because you’re not paying any interest. However, if you’re someone that does carry a balance, then obviously that’s not as good a thing, and you’re going to start to sort of wipe out that 5% discount that you get if you have to pay interest on the other end. However if you are someone that pays off every month, the good thing about having the credit card is or maybe the bad thing about having the debit card is, the debit card and this is debit cards in general, not just the Target debit card but anytime you have a debit card, if there’s a hack.
There is something stolen or whatever, you’re giving someone access to your bank account via that debit card. Because the way this debit card works is you have to have it attached to a bank account that that money is pulled from. So obviously if anyone can get, you know, any sort of criminal can get a hold of your debit card number, whether that is stealing the card itself or through some kind of hack in a store, that gives them access to your bank account, which means they can clean your bank account out if they have that access.
Automate payments on debit card
Now when you have that happen, obviously you can go back to your card issuer, and over time you can get things worked out. You’ll get your money back, and that probably won’t be, you know, won’t be an issue. It’s not like you’re going to lose that money forever; you will probably get most of it back. But one of the things that can happen if you have a debit card get cleaned out is, if you have authorized, automatic payments on that debit card, during that period. Where you’re trying to get your money back that’s been stolen, you could have other merchants, retailers or whatever trying to charge your debit card.
If there’s not a balance there, then you could get charged fees from these other merchants or retailers or whatever you have on your debit card. So that’s something to consider every time you think about getting a credit card versus a debit card. Obviously, it’s nice to use a debit card if you’re someone that feels like you don’t want the potential to ever go into debt — you know, only spend what you absolutely can afford, what’s in your bank account. But there is a potential downside to that as well. Of course, that’s everybody’s personal choice on how they want to handle that. Still, from our angle we tend to think of ourselves, well not ourselves, but the waythe sort of the ideal is that you pay off those credit cards every month. So you take advantage of the upsides to credit cards, and one of them is that it does provide you some protection that maybe debit cards don’t.
They don’t provide you as much protection. But again, that’s up to you. And so that’s pretty much it. That is our review of the Target Red Card, both the credit card and the debit card.