Is the Target Circle™ Card Worth It in 2024?

Are you considering signing up for the Target Circle™ Card credit card?

You might be wondering if the rewards credit card (which was formerly known as the “RedCard”) is worth adding to your wallet.

Target Circle™ Card Is Worth It to You If:

• You’re a frequent Target shopper. People who frequently shop at Target may benefit from the 5% discount and other perks offered by the Target Cirle Card. This can be especially useful for those who do a lot of household shopping, including groceries, clothing, and home goods.
• You have a lot of items shipped to your home. Target Circle members receive free two-day shipping on many items from Target.com.
• You don’t need a credit card for purchases somewhere other than Target. While Target does approve some cardholders for a Mastercard that can be used elsewhere, the Circle Card is primarily geared toward purchases within the Target ecosystem. If you’re looking for a cash back or rewards credit card that will earn from all purchases, this is not your best choice. Most people should be looking at this card as a supplement to an everyday spender.

This article was updated in June 2024 and I review it every 12 months. Detailed notes on all updates can be found here.

All information about the Capital One Walmart Rewards® Card has been collected independently by Clark Howard Inc.

All information about Prime Visa has been collected independently by Clark Howard, Inc.

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Are you the type of person who can’t make it a week without shopping at Target? If so, you may want to consider taking your relationship with the retailer to the next level in 2024 with a Target Circle™ Card.

The Target Circle™ Card store credit card offers a 5% discount on almost everything you buy at the retail giant both in the store and online.

But is the best rewards credit card for your everyday shopping needs?

Team Clark will try to answer that question with this card review as we explain the different Target Circle Cards (yes, there’s more than one) and compare this store credit card to cards from rival retailers Walmart and Amazon.

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Table of Contents

• What Is the Target Circle Card?
• Understanding the 4 Different Types of Circle Card
  • Store Credit Card
  • Store Debit Card
  • Mastercard
  • Reloadable Debit Card
• Card Specs and Perks
  • Top Cardholder Benefits
  • Cardholder Fees
• Target Circle Card vs. Walmart and Amazon Credit Cards
  • Card Comparison
  • The Big Takeaways
• Final Thoughts
  • Pros and Cons
  • Bottom Line

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What Is the Target Circle™ Card?

The Target Circle Card credit card is a no-annual-fee store credit card that offers 5% off purchases made at Target and on Target.com. It also provides free shipping opportunities for Target.com shoppers.

This is a good enough return on your purchases to land this card on Team Clark’s list of best credit cards for shopping rewards.

There are four different iterations of the Circle Card. Three of them cannot be used for purchases anywhere but the retailer’s stores and website. Keep reading to learn more about each.

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Understanding the 4 Different Types of Circle Card

This review is solely about the Target Circle Card store credit card, but the term “Circle Card” does require some clarification.

Target has four different cards that carry the Circle Card branding, and that can be confusing.

Let’s take a minute to clear that up:

Store Credit Card

This is the card we’re reviewing in this article.

It is a store credit card that gives a 5% discount on purchases at Target and on Target.com, but you can’t use it anywhere else.

And since it isn’t a full-fledged credit card, it also doesn’t come with things like introductory APR periods, welcome bonuses, balance transfers or the like.

Again, this is the credit card that we’re reviewing in this article.

Store Debit Card

If this card design looks frustratingly identical to the store credit card, that’s because it is.

The debit card version of the Circle Card looks the same as the credit card, and it also gives you a 5% discount on purchases. But it functions differently on the back end.

This Circle Card links to your personal bank account for withdrawals after each purchase. These can take 2-3 days to process, so make sure you keep sufficient funds in your bank account to cover purchases. (Money expert Clark Howard often argues against using debit cards for reasons such as this.)

You also can also use it to withdraw cash at the Target register — up to $40. (But you can do that with any debit card.)

You can apply for the debit card here.

Mastercard

This card can be used both at Target and at other retailers. But it’s not a guarantee to just anyone who applies.

Instead, eligibility for the Mastercard product is determined by TD Bank USA, which is the card issuer for the Target Circle Card.

If you don’t get an offer for this card right way, you may still be able to get the Target Circle store credit card. And you may be evaluated for access to this Mastercard at a later date.

This card carries the benefits of the store credit card, but you can use it anywhere that takes Mastercard. It also offers some additional cash back spending categories: Earn 2% on dining and gas purchases, and 1% everywhere else outside of Target.

You can find the Mastercard guide to benefits for this card here.

Reloadable Debit Card

Target’s fourth option for Circle Card activity is a pre-loadable Visa debit card.

This card entitles you to the 5% discount and other perks that Circle Card users enjoy, but you have to load money on it to spend at the store. In most cases, Team Clark does not recommend preloaded debit cards as a means of making purchases.

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Card Specs and Perks

Now that’s cleared up, back to the store credit card: This version of the Circle Card can be used only for purchases in Target stores, with select in-store partners and on Target.com.

Here’s a rundown of the benefits and rewards you can expect from this card:

Top Cardholder Benefits

• 5% Discount: This applies to most purchases made in-store at Target and on Target.com. There are some exclusions such as eye exams at Target Optical or prescriptions filled at the in-store pharmacy.
• Starbucks and Gift Card Deals: You’ll also get a 5% discount for Starbucks purchases inside Target stores as well as a 5% discount on gift cards for places like restaurants and movie theaters. If you’re an avid Target shopper, you’ve probably already browsed those cards while waiting in the checkout line.
• Free Two-Day Shipping from Target.com: In what is assuredly an attempt to compete with Amazon, Target is promising free two-day shipping for purchases made with your Circle Card on thousands of items. Even if you don’t get free two-day shipping for your item, you will get free standard shipping.
• Extra Time to Return Items: Circle Card users get an additional 30 days to return items purchased at Target. So if you’re weighing the usefulness of a new purchase, you may get the extra time you need to make your decision if you buy the item with your Target Circle Card.
• Savings on Clearance and Deals of the Week: You’ll get a chance at an additional discount on Target’s clearance items and the Target deals of the week by purchasing with this card.
• New users receive a $50 off Coupon: Get a coupon for $50 off one future qualifying purchase over $50 when you are approved for a debit or credit Target Circle™ Card in-store or at Target.com. The coupon will be mailed to the approved cardholders with their Target Circle™ Card. You will have at least 30 days to redeem the coupon.
• Exclusive Deals and Offers: You can get extra coupons and deals that are exclusive to Circle Card members. These offers change over time.

Cardholder Fees

• Annual Fee: None
• Balance Transfer Fee: Not applicable
• Cash Advance Fee: Not applicable
• Foreign Transaction Fee: Not applicable
• Returned Payment Fee: Up to $29
• Late Payment Fee: Up to $40

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Target Circle Card vs. Walmart and Amazon Credit Cards

Are you trying to decide between getting the Circle Card or a credit card from another of the country’s top retailers?

If you’re not married to the idea of shopping at Target all the time, both Walmart and Amazon have co-branded store credit cards that are worth investigating.

The Capital One Walmart Rewards® Card and the Prime Visa from Amazon are elite store rewards cards that have earned spots on a variety of Team Clark’s “best” lists, including rewards credit cards and shopping rewards.

But how do they stack up against the Target Circle Card store credit card?

Here’s a handy card comparison to help you decide:

Card Comparison

Card Characteristic	Target RedCard Store Credit Card	Prime Visa	Capital One Walmart Rewards Card
Annual Fee	None	None (Prime membership required)	None
Able to Use with Other Merchants	No	Yes	Yes
Store Rewards	5% off Target and Target.com purchases	Unlimited 5% back on Amazon, Amazon Fresh and Whole Foods purchases (eligible Prime membership required). Earn 10% back or more on a rotating selection of products and categories at Amazon.com	5% back at Walmart.com, 2% back in Walmart stores
Store Reward Type	Discount off purchase	Cash back redeemable on Amazon account or via Chase portal	Reward points redeemable for cash back, statement credit, travel and more
Non-store Rewards	None. Store card only.	Unlimited 5% back on Chase Travel, unlimited 2% back at restaurants, gas stations and transit, unlimited 1% back on all other purchases.	2% back on restaurants and travel, 1% back on all other purchases
Welcome Bonus	None	$100 Amazon Gift Card (or more) instantly upon approval exclusively for Prime members	12 months of 5% back on in-store shopping through Walmart Pay
Shipping Perks	Free 2-day shipping from Target.com	Free shipping with Prime membership	None with card. Walmart+ membership required for free 2-day shipping.
Store Perks	5% off in-store Starbucks purchases and specialty gift cards	Up to 20% off with Amazon’s exclusive Prime deals	None
Noteworthy Card Perks	Extends return period for purchased items by 30 days	No foreign transaction fees for spending abroad	$0 fraud liability protection if card is stolen

The Big Takeaways

So what are some of the things we can take away from this side-by-side comparison of the credit cards for three of the country’s top retailers?

• Target has the best in-store discount: All three cards offer 5% rewards online, but only Target offers that on the overwhelming majority of its in-store shopping. Walmart offers 5% on a preliminary basis through Walmart Pay, but the regular rate of 2% comes up well short of Target. And Amazon simply doesn’t have many in-person retail options in much of the country.
• Target doesn’t bring the flexibility: We’ve talked at length about the Circle Card being for Target purchases only (unless you’re offered the Mastercard), but the consequences of that show up multiple times in this comparison. Not only do the Walmart and Amazon cards allow purchases at other merchants, but they also offer enhanced 2% back benefits on certain purchases and at least 1% back on all purchases.
• You can get free shipping at all three — but not equally: It’s true that all three stores offer you free shipping for online purchases that meet a certain spending threshold. But Target has the only card that offers free shipping on purchases of any size without charging a membership fee. Amazon and Walmart offer free shipping on purchases made with their premium memberships, but those memberships cost money (and don’t have anything to do with their store-branded credit cards).

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Final Thoughts

Are you considering adding the Target Circle Card to your wallet? Let’s review some of the major pros and cons of the card before you make your final decision:

Pros and Cons

Pros	Cons
5% back on Target and Target.com purchases	Cannot use at other merchants
Free 2-day shipping on many Target.com purchases	No welcome bonus offers
Additional discounts on in-store Starbucks and gift card purchases	No 0% APR spending opportunity

Bottom Line

If you’re a frequent Target shopper, this rewards credit card is a strong candidate to add to your wallet.

The 5% discount you can earn on all your Target purchases is among the best rewards going for a no-annual-fee credit card. Plus, you’ll get free shipping on all purchases if you choose to shop virtually.

And though the Circle Card limits the places you can use it, it’s still a strong option for brand-loyal Target customers.

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Do you have the Target Circle Card in your wallet? Tell us how you like it in the Clark.com community.

Article Updates

• May 2024: Updated card name to Target Circle Card. The Target RedCard was rebranded.
• May 2023: Updated to include reloadable debit card option. Also, verified that all offers are up-to-date. Made changes to the Amazon card comparison, as it now referred to as Prime Visa.