Target Redcard Gives You A 5% Discount at Target Stores

Image by smcgee via FlickrThe retail market is very competitive. Brick and mortar retailers have to compete with cost cutting online stores. Big box stores like Target, Walmart, and K-mart are fighting for the consumers dollar. How does a retailer attract and keep customers coming through their door? Target has come up with way, it's something called the Target REDcard.

The Target REDcard is a debit card that links to your checking account. It works just like any other debit card but it can only be used at Target stores. When you use it at Target you receive a 5 percent discount on every purchase.

How does it work for the average consumer?

• The immediate benefit is a 5 percent discount on every purchase. 
• There will never be any fees like overdraft or any penalties that credit cards can give you.
• There is no credit check, you only need a checking account to be approved.
• You can never get into any debt because you can only spend the money you have in your checking account.
• If you use the card on the Target website, shipping is always free.
• If you have your prescriptions filled at a Target Pharmacy, after 5 prescriptions you receive a 5 percent discount for shopping on one day, on top of the Redcard 5 percent discount.

What's the Downside on having this card?

• It's not credit. You have to pay in full out of your checking account. It's like paying cash.
• Being it's not credit, your good paying record won't be reflected on your credit report.
• If you have a checking account and you already have a debit card. Why have another card?
• Doesn't work at Target Mobile.
• Having the hassle of carrying another card. 
• Linking another card to your checking account.

Should you get this card?

If you rarely go to Target, the 5 percent discount won't amount to much. If you do go to Target often, then this card makes sense. The 5 percent discount coupled with free shipping at Target.com is a substantial savings and is another good reason to get this card.

Switching from credit to debit cards is a big part of a plan to use your money more wisely. With a Target REDcard you're helping yourself stay away from new debt and it's helping you stay on your budget. Get the card.