I am not a large fan of shopping, especially for those everyday items that I need for the house.  Though I know that I need the monthly supplies, I dislike dolling out the cash for them.  My house is close to many different retailers, so I have a good variety of stores to choose from.  After trying out different stores and comparing prices, I have to say that Target is my retailer of choice.  I also use them as my pharmacy.

As I worked toward becoming debt free, I looked over our monthly household supply expenses.  I wanted to see which items were necessary and what others were just wants.  After digging through all the numbers, spanning over a years time, I realized that we only really purchased things that we needed for the house.  There are ways to save on your purchases at Target, but I wanted to know if there was more.  This is when I came across the Target RedCard.

basket full of groceriesTarget offers two types of cards, credit and debit.  Each card offers you 5% off immediately on your purchases, excluding pharmacy.  The main differences between the cards is obvious, one is a credit card and the other is tied to your bank account.  I researched both cards and read reviews online to learn which option would be the best for me.  Since I was working toward getting out of debt, I decided against the credit card and went with the debit card.

The application process was easy, only providing a check to the cashier and they set you up.  Once you get the card, you call to activate and set up a pin number, much like any bank card.  Each time you purchase anything at Target, you get 5% off.  I love saving money and anything helps.  I also use Target’s Pharmacy Rewards, so I get a 5% off coupon for every 5 prescriptions filled.  Adding that to my RedCard, I can save 10% on a day of purchases.  I have been using my RedCard for quite some time now and I really enjoy it.  Here are my pros and cons.

The Good

  • Instant Savings
  • 5% off at Target.com
  • Free Shipping at Target.com
  • More coupons based on your purchases
  • You can choose where the 1% that Target sends to schools goes

The Bad

  • Card is tied to your bank account
  • Privacy Policy could bother some
  • Customer Service can be hit or miss if you have to call

Most of the reviews online are dealing with how Target uses your personal information, both with the credit or debit card.  They didn’t like that Target can use your information in order to provide you with a more personal shopping experience.  I have a marketing background, so this stuff doesn’t bother me.  If you think that any retailer doesn’t use your information, either from mailing lists or rewards cards, then you need to really open your eyes.  The more personal a shopping experience a consumer has, then they will more than likely to come back and shop.  This is just a simple marketing tactic.

free Target shipping onto of boxThe RoundUp

Though some may dislike Target, I enjoy shopping there and really enjoy saving 5% with my RedCard.  If you shop regularly at Target and are looking to save money, then check out their RedCard.  I usually take the 5% savings from the RedCard and put it in a savings account.  When I was paying off my credit cards, I would put the savings toward my monthly payment.  Some months it wasn’t much, but it was 5% more than what it would have been.

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2 Comments

  1. I was skeptical about getting a target redcard, in either form, but after a while I decided to go for it. I enjoy the 5% savings since I too, shop at Target all of the time. It anyone goes to target, then they should think about getting the redcard. One thing you didn’t mention is how much the APR is for the credit card. I got the credit card and it was about 22%. If you do not pay off your balance, then the 5% saved will be wiped out easily.

    If you pay off your credit cards, then the Visa Redcard would be better off for security purposes, but if you have rolling balances, then choose the debit card.

    Thanks Grayson for a good article.

    1. Thanks for pointing that out saver. That was one of the reasons why I didn’t go with the credit card. It really all depends on how well you manage your credit cards. Thanks for stopping by.