Target REDcard: Credit vs Debit

Anonymous · ‎05-18-2017

I was thinking about applying for the Target REDcard. The reason I want the card is the 5% discount and free shipping. I know that they also have it in a debit card version. Is there any reason to get the credit version vs the debit? I looked through the approvals and most have a low starting limit.

Anonymous · ‎05-18-2017

@Anonymous wrote:
I was thinking about applying for the Target REDcard. The reason I want the card is the 5% discount and free shipping. I know that they also have it in a debit card version. Is there any reason to get the credit version vs the debit? I looked through the approvals and most have a low starting limit.

The credit really only has an advantage if you want to float a purchase or pay one off over time. My limit got up to $1300 in about a year but it seems I was lucky compared to what I've heard from others. I have the debit card version also.

Anonymous · ‎05-18-2017

Credit provides fraud protection. Debit allows one to burn your bank account with little protection for you. If you are fine with taking the risk with all the card fraud, then no reason for the credit card. Credit also bills monthly, so you dont have to pay it off at time of purchase.

digitek · ‎05-18-2017

As far as I could tell, there wasn't any difference between the Target Debit or Target Credit card as far as benefits go. My DW has the Credit Card.

Target Credit Card can get upgraded to an actual Target MasterCard and not a store card if they feel like doing it (you can't actually apply for the Mastercard AFAIK), and then you can use it anywhere, but I actually have no idea what benefits the Target Mastercard actually have, or if they are different at all from the normal Target Credit Card (which can only be used in Target and is not a branded Mastercard).

Super strange thing about the Target Mastercard is that is one of the very few Mastercards with no FTF that is a true Chip + Pin and no AF.

If you have no need for the new line of credit on your report then I'd probably just get the Debit.

Hope that helps

(like other people said, I guess there are fundamental differences between debit/credit card that must be considered, like if you want to not pay it off in full or are worried about liability if someone steals the card and goes nuts at Target)

Anonymous · ‎05-18-2017

For safety I have linked my target debit to a small bank account, so there isn't a whole load of money if something goes wrong. But this adds another layer (you now have to transfer money from time to time) so others may not bother. You probably can't put huge amounts on it anyway.

And my usual plug: in many cases discounted target gift cards will be more profitable, especially if you are anyway giving up credit card protections

Anonymous · ‎05-19-2017

Thank you for the responses everyone! I always pay in full, so i won't be carrying a balance using the card. Thank you for reminding me about the risk of linking it to a checking account. Just like Longtimelurker, I have a spare checking account. There is barely any money in it. It's from a credit union, so they don't require a minimum balance. I can always deposit a little cash when needed. As for the gift cards, where would be a good place to buy them on discount? If it's a good deal, I might as well skip applying for either card.

digitek · ‎05-19-2017

After I read Longtimelurker's post above I actually looked for discount giftcards for Target and the best I could find was about.......5% off. =D

Anonymous · ‎05-19-2017

@digitek wrote:
After I read Longtimelurker's post above I actually looked for discount giftcards for Target and the best I could find was about.......5% off. =D

You can stay alert and wait for chances where they are deeper than 5% and pile them up to cover the rest of the year or cycle

Can't easily do the same type of 'time shift of discount' with the red card.

btw. Sometimes the discount can even stack with another point earning card like the chase freedom's seasonal 5x.

Anonymous · ‎05-19-2017

@digitek wrote:
After I read Longtimelurker's post above I actually looked for discount giftcards for Target and the best I could find was about.......5% off. =D

Yes, currently 5.03% but sometimes higher. But now a little spoonfeeding for you: how would you plan to buy those cards? Send an envelope of cash or a check to say GiftcardZen? I wonder if there is any other way you could pay, and maybe get, oh, let's say 2% back on the purchase. In the unlikely event there was such a way, you would buy a $100 card for $95 (5% for now), amd get $1.90 back, so a $100 card for a total of $93.10, so a 6.9% discount

But nah, can't think of an alternative to check or cash.....

Anonymous · ‎05-19-2017

I have the debit card from before I had any credit cards. I often wish I had the credit version because the checking account my redcard is linked to is an old one we dont keep much in. It doesn't give me the option to float a purchase or pay with my other checking account while still keeping the 5% off.