By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: The Target Circle Card, formerly the RedCard, gives 5 percent off your Target purchases, which is a real saving for heavy Target shoppers. But it is a store card locked to one retailer, with a high APR and rewards that work nowhere else, so unless Target is a huge part of your budget, a flexible 2 percent card you can use everywhere comes out ahead.
What the RedCard really is
The Target Circle Card delivers an instant 5 percent discount at Target and Target.com, plus extended returns and free shipping. Note that this is a discount on Target spending, not flexible rewards: it has no value anywhere but Target, you cannot bank it or move it, and the card itself is generally accepted only at Target. It is a loyalty tool dressed as a credit card. See are store cards worth it.
The store-card downsides
As a store card, the RedCard typically carries a high APR well above a mainstream rewards card, so carrying any balance erases the 5 percent quickly. And because it only rewards Target, every dollar you spend elsewhere on it would earn nothing, which means it cannot be your everyday card. The 5 percent is real, but it is narrow and comes with the usual store-card baggage. See the rewards math.
When it makes sense
If a large share of your spending genuinely happens at Target and you pay in full every month, the 5 percent discount can beat a 2 percent card on that spending, so using it just for Target purchases is reasonable. But do not make it your main card. A flexible 2 percent or transferable-points card rewards all your spending and works everywhere. See cash back vs travel rewards.
Frequently asked questions
Is the Target RedCard worth it?
For heavy Target shoppers who pay in full, the 5 percent discount can beat a 2 percent card on Target spending. For everyone else it is too narrow, since it rewards only Target and has a high store-card APR.
Is the Target Circle Card a real credit card?
It is a store card that gives a 5 percent discount at Target and is generally accepted only at Target. The reward is a discount on Target spending, not flexible rewards you can use elsewhere.
Does the Target RedCard have a high APR?
Yes, like most store cards it typically carries an APR well above a mainstream rewards card, so carrying a balance quickly wipes out the 5 percent discount. Use it only if you pay in full.
Should the RedCard be my main card?
No. It rewards only Target spending and earns nothing elsewhere, so it cannot be your everyday card. Use it just for Target purchases and a flexible card that works everywhere for the rest.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
