Target REDcard (Debit) Review

Getting a 5% discount on all your daily Target purchases is reason enough to review the REDcard. Getting a 5% discount on Disney gift cards, makes this a card every Disney traveler has to consider. Plus, the debit card version doesn’t require a credit check, so people who are anxious about credit inquiries or who have a low credit score can still get a great card. The Target Debit Card also has no annual fee.

Sign Up Bonus (Grade: C)

The card does not come with a sign up bonus. We normally give no annual fee credit cards a “D” for not having a sign up bonus, but this is a debit card and there are so few debit cards these days that earn any kind of rewards, that we’re going to give this one a pass.

Daily Spending (Grade: B)

Getting a 5% discount on all your purchases puts this card in upper echelon of what you can earn with a rewards card. The only reason we don’t give it an “A” is because you’re restricted to using it at Target. But, for a family that purchases all their groceries and household supplies at a Super Target, this could be a quarter of your total monthly spending, making this a great card to consider. If you spent $500 a month at Target ($6k a year), you’d save $300 a year just by using this card.

A couple additional points worth mentioning; with Target, you’re getting a 5% discount at the register, not cash back like many cards. This can be a pro or con depending on how you look at. If you’re specifically trying to save up for a Disney vacation, you won’t see funds accumulate off to the side like you would with a cash back card. However, you’re also spending less money up front.

Perks (Grade: A-)

No Credit Check – As we mentioned at the beginning, it can be a nice feeling to get a card that will save you money and not worry if you’ve had too many credit inquiries recently or whether or not you’ll get approved based on your credit.

Cash Withdrawal – You can pull out up to $40 at the register with the debit card, a helpful feature when you need cash.

Gift Cards – You get a 5% discount on in-store and Target.com purchases and this includes gift cards. You can get $100 Disney gift cards online (for $95), but you can also get all kinds of other gift cards like Southwest Airlines, Starbucks and more. This could be a way to save money beyond just Target by buying discounted gift cards for places you already shop.

Free Shipping – You get free shipping on most items through Target.com. We found this helpful when we purchased Disney gift cards because our local store only sold $50 gift cards, but Target.com sold $100 cards. It was nice to cut the number of cards we needed in half.

30 Extra Days for Returns – This probably won’t come in handy very often, but once in a blue moon it could get you out of a jam.

Redeeming Points (Grade: A-)

We typically use this section of our reviews to talk about how flexible your points will be when you redeem them. In this case, you’re getting a discount at the time of purchase, so there are no points redeem. You could look at this way, you’re essentially getting cash by saving on the front end, which would make this very flexible. However, we’re going to give this a slight deduction because we actually prefer to see money or points accumulate for our trips. Credit card rewards are how we save for our Disney vacations.

Overall Grade: B

The grade for this card really depends on how much you’ll use it. If you spend a large portion of your monthly budget at Target, then this card is probably an “A” for you. If you spend a couple hundred dollars a month, it may not be worth the space in your wallet. In either case, if you have a Disney vacation coming up and know you’ll need to pay Disney $2,000-$3,000, purchasing Disney gift cards at a 5% discount could make this card worth your time just for your vacation savings alone.

This post contains affiliate links and we will be compensated by Target if you sign up for the card after clicking one of our links.

Target REDcard Debit

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  • What kind of points: Purchase Discount
  • Sign Up Bonus: N/A
  • Annual Fee: $0
  • How to Earn Points: 5% discount on most in-store and Target.com purchases (including gift cards)
  • Value of a Point: 1.0 cents
  • How to Spend Points: N/A
  • Our favorite Use: Purchase Disney gift cards at a 5% discount