I remember this "perk" being recommended to me by CSRs when I called to close my Target card years ago. I had no interest in keeping their card with its ridiculous limit, regardless of the 5% discount. I probably spend 30 bucks every 4 months or so there now. I do believe I would still have their card today if I had the Target Visa though. I know that it's limits could go fairly high with good credit. I recall a few relatives having 10-15k+ lines on it.
@Anonymous wrote:That is extremely interesting. So one could "double dip" and get the full 5% back on a $500 item by paying, say, $250 of it with the Red card and then getting an additional 5% on the $250 that's left over by using, say, a Sallie Mae, for example. That's a 7.5% return. Not bad at all!
You could probably get that up to about 9.9% by only charging $5 on the Red Card and the rest on the 5% cash back card and then you would really maximize the rewards.
I have to caution you though. If only one person does this, then they might think that person and weird and not think anything of it.
If three people did it, they might think it is an organization, but still not think anything of it.
Now what if 50 people a day did it. If 50 people a day walked into Target and plunked down their Red Card and got their 5% discount and only charged $5 of their purchase and then used another card for the rest, they might think it is a revolution. And that is what it is, a revolution, it's the Target Discount No Credit limit increase movement. Fifty people a day, going into Target and only charging $5 ont their Red Card and the rest on their best rewards card, then it's a revolution. And all you have to do to join is walk right in to Target and sing I want to only charge $5 of my purchase on my Red Card and pay the rest with my best rewards card.
(Sorry my mother used to listen to Arlo Guthrie and when I started to reply to this Alice's Restaurant just popped into my head.)