Target is one of the largest discount store chains in the country. It is located all over the United States and the chain continues to grow every year. Even though it is a discount store, it did once offer another way for you to get a discount and that was with this Target Visa credit card.
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Unfortunately, the word “was” is used here because, in April of 2010, Target discontinued its Visa credit card option. All of its cardholders that had a Target Visa were offered a REDcard in its place. Even so, the REDcard is under the same restrictions for fees as its Visa card was, according to the Federal Reserve.
Target Visa Credit Card – The REDcard Alternative
The Target REDcard is the only credit card offered by Target at this time. You can also get a Target debit card, but this is very different from the REDcard as its use is based upon the deposits that you make to the debit card. The downside to the debit card is that you can only use it at Target and it isn’t a secured credit card, which means your use isn’t reported to creditors.
The REDcard is a retail store credit card option, which means that you will be paying a higher interest rate for this card, regardless of how good your credit might be. What’s more, the APR is tied in with the prime rate, which means that if the prime rate increases, so does your APR.
Target Visa Credit Card – The REDcard Rewards Program
Initially, both the Target Visa credit card and the REDcard offered a rewards program that allowed you to earn points for each $1 that you spent using your Target credit cards. However, at the end of 2010, Target discontinued that rewards program.
Now, Target offers a 5% discount on all purchases made at Target.
This applies to any purchase, including clearance items and medications. Additionally, when you purchase five medications using your Target REDcard, you will get an additional coupon for 5% your entire store purchase. You can use this coupon at your leisure; it doesn’t have to be used on the same day you receive the coupon.
Target Visa Credit Card – The REDcard Terms
The biggest downside to using this credit card is its 22.9% interest rate. In addition, the penalty fee will be up to $35 for a late payment and $25 for a returned payment. However, if you don’t plan on carrying a credit card balance, then you can benefit from the 5% discount that Target offers on this card.
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