Target Redcard Question

[Mike360]

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@SwampSystems wrote:

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@Mike360 wrote:

If you think about it it really is a horrible store card since they offer no financing options ever and the benefits you do get with that card you can also get with the debit version so why not just go for that version. I only keep mine open because i don't close accounts that have no AF even if i don't use 'em but if you are thinking about doing so it wouldn't be a horrible decision either way.

@Anonymous Buy started me out @ $3K a year ago and within a year i was at $6K so Target really doesn't get any of my electronic purchases which in my household is alot of money.

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The one benefit you get with the credit card over the debit card is the predictability of a single payment coming out of your checking account, rather than multiple small purchases being debited whenever they feel like it. The debit card trips up a lot of people with overdrafts who don't balance their checking accounts and live paycheck to paycheck.

I very rarely shop at Target these days though -- I only haven't closed mine yet because I'm waiting to see what TD bank does with CLIs once they control the account.

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It does take a few business days to actually post to one's checking account so i could see how this could be a issue if you are living paycheck to paycheck. I wouldn't suggest the debit card version if you happen to be living this way because of the delay in payment's posting. 

[SwampSystems]

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@leoment wrote:

Wait, the debit card doesn't just withdraw at the end of the day?  I assumed it worked like the debit card we offer at my job (higher end clothing retailer) - that card deducts all of your purchases at the end of the day at one time.  Nonetheless, I don't spend nearly enough to worry about cleaning out my bank account when I go to Target

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Sometimes it batches all of a day's transactions together, sometimes it doesn't. Either way, the funds can take up to 5 to 7 business days to actually show up as debited from your checking account, depending on your bank. I know plenty of Target team members who couldn't qualify for the credit card and opened the debit card, only to close it later after they overdrew their checking accounts one too many times. Like I said though, these are people who live paycheck to paycheck, keeping a very low balance in their bank accounts and using online banking for instant gratification of account balance without diligently accounting for transactions that haven't posted yet.

[jbunton444]

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@jsucool76 wrote:
Jbunton:

Was that the total after 14 months, or did you accumulate that much every month?

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I'm sure it compounded a little, but only on previous months balance if I am remembering correctly...  used the card alot.