@Mike1014805 wrote:So, about 3 weeks ago I applied for the Target RedCard on a whim because I shop there so frequently. To my, happy surprise, I was approved with a $1200 starting limit. My friend, who's worked at Target for 10+ years, said she was shocked I got approved for a $1200 starting limit, because most of the people who apply, usually get $200-$500 starting limits.
I don't plan on using more than 20% of the limit at a time, because it can be dangerous and I'll waste all my money at Target otherwise...
However, I was curious about a few things:
- How long is the time-frame (roughly) to get the upgrade to the Mastercard version?
- Does TD Bank give automatic CLI? Or do I need to call and ask?
- Do I need to use the card heavily to get an increase, like with Capital One (for example)?
- Finally, does the card report to all 3 bureaus?
I can tell you my experience with the Red Card. First, ys it does report to all 3 CRA's, Second, you cannot request a CLI, they are "automatic" only and very, very, very rare. I've had it 3 years and it's still at the SL with never a CLI. I keep my salary updtated as suggested, I have good credit scores and numbers, I use the card and both PIF and have even carried small balances as well trying that. Nothing has triggered a CLI or the Mastercard version and I've seen dozens and dozens of other with the card say they have experienced the exact same as well.
The few folks that I have seen post about a CLI or an upgrade to the MC version it took years, 5 years or more for that to start happening.
I consider it one of the absolute worst cards I've ever had due to the things I listed and that almost no one gets CLI's.
Why do people want a high credit limit on this card or for it to upgrade to a Mastercard? To the best of my knowledge, the card has no rewards/bonuses outside of Target. With an APR over 20%, if you carry a balance it would cancel out any initial discount you may have had.
Last update: 5/10/2024
@Mike1014805 wrote:However, I was curious about a few things:
- How long is the time-frame (roughly) to get the upgrade to the Mastercard version?
- Does TD Bank give automatic CLI? Or do I need to call and ask?
- Do I need to use the card heavily to get an increase, like with Capital One (for example)?
- Finally, does the card report to all 3 bureaus?
@Mike1014805 Unfortunately, there's no established rhyme or reason. My account, for example, is at 2 years and still at the SL, no dice so far. DP's on the effect of spend are mixed, as are the effects of regular or occasional use. After reading every post I can find on the topic, I believe the most sound recommendations are to update your income monthly, and let your balance post every statement and then PIF.
I opened my RedCard back in 2016 as just a store card and got a SL of $2K. When it was upgraded to the MC a couple of years later they increased it to $7K. From there, I got auto CLI's to $9k, $13.5k, $14K, and then the current $14.5k. I only use the card at Target and my monthly spend is not very much, except around the holidays. I always let the balance post on the statements and PIF.
Hopefully those data points help, but it has always seemed hit or miss with others I've read about.
Adding to FinStar's post, the MasterCard version does earn rewards for purchases outside of Target. Perhaps not wonderful compared to many other cards on the market, but it earns a respectable 2% back on dining and gas purchases and 1% everywhere else which can be redeemed for Target gift cards once you hit $10 or more in rewards. IIRC the card also has no foreign transaction fees. As far as the APR goes, yes it is on par with most retail cards but with its 5% off at Target you would still do better using this to carry a balance for a few months than even a very low APR credit union card, even something like 5.99%. Another reason someone may want the upgrade is that the card would report as a revolving bankcard rather than a retail card, which may have some advantages with insurance industry scores for example.
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Receiving a CLI is very much YMMV. My personal experience was that I got the card in 2002 with a $1200 SL several lenders ago, it was upgraded to a Visa and simultaneously received a decrease to $800 in 2005 (even though I have never had any negative credit history with any lender), then it sat at $800 for years. When TD Bank acquired the portfolio, the card was changed from Visa to MasterCard.
After using the card monthly, letting the balance report on my statement, paying it in full each month, and "updating" my income to the same amount every now and then, I finally got my first CLI in June 2016 and received regular CLIs every June and December through 2019 until I was at $10,300. They stopped for a little while and then resumed November 2020, and I also received them in May and November last year. I don't think I've "updated" my income in probably a year, so that particular data point may just be coincidental.
