To Retail Card or Not to Retail Card?

[SoCalifornia]

In a few months I may be apping and might sacrifice a few HP's- two or so apps. I have somewhat of a plan, but am specifically curious about store cards. I have never had any, but have fallen "target" to the Red Card. What's the story behind retail cards and is Target a good card in that particular category? Educate me my peers!?

[Aim_High]

Store cards have their strengths and their place.

They tend to be easier to qualify for so they can be great for building or rebuilding.

If you already frequently shop at a store, they can be very useful with the discounts or special deals they may offer.

(In my opinion, if you don't naturally shop at a store at least every 2-3 months without thinking about it, you don't need a dedicated store card to that store unless you're just doing it to build credit history.)

On the downside, they tend to have more harsh terms (higher fees, higher interest rates, etc.)

They are more subject to credit-line-decrease and/or account closure if you don't use them often.  (I can't tell you how many times I've had retailers close my cards.  Sometimes, I have found out when I go use it!)

Although there are exceptions, they tend to have lower credit limits than general bank cards.

By signing up for a card, you identify yourself to the store and may start to receive a lot of unwanted or unsolicited mails, emails, etc. 

Overall, I migrated away from store cards and I'm glad I did.  My profile is mature and I don't need them.  I would rather have fewer lenders and credit lines to deal with, and having a bunch of store cards adds complication for less reward. More accounts to monitor and payments to make than if you put the payments on a general-use card. 

I'm probably not typical, but I particularly despise the Red Card after some negative dealings with Target National Bank.  To me, even 5% wasn't worth it.

[recoveringfrombk7]

Target is through TD now. At least that's what my CR says? (Td bank usa/Target)

OP, I love mine for when Discover is not 5%, but we do some food shopping there and have one just down the road, so it is entirely natural for me to be there/use the card frequently.

[wasCB14]

I've spent maybe $200 at Target in the last decade, but if someone spends thousands a year there it seems like the 5% could add up quickly.

I had the Brooks Brothers store card a few years ago. The semiannual $20 gift cards were nice, though nearly all the sales were available to anyone on the email list.

When I moved and no longer had a convenient store nearby I closed the card (the $20 GCs were only valid in-store and quickly expired).

I doubt I would get a retail card again. They just can't beat big cash and travel SUBs.

[Anonymous]

 My Target card is actually getting more spend than I thought it would. They're cheaper than Amazon on a lot of everyday items and they run great sales plus not having to deal with third party merchants means I haven't been upset when I got an order from Target yet - breakables are packaged very well and while they will ship cleaning products and food items in the same box, they bag and tie off cleaning products and place them in the other side of the box. I have actually only ordered a few things from Amazon since getting my Target card. 

[recoveringfrombk7]

I have some subscriptions through them for the same reason. They've really stepped their game up imo.

[recoveringfrombk7]

Also being able to snag Black Friday sales on the Wednesday before (online and in the store) has been amazing. This year we got a cordless Dyson for 180 and a 50inch 4k tv for 180 all without having to deal with the nonsense. That alone would be worth it to me.

[iheartwings]

I've had a Target RedCard which eventually became a RedCard Mastercard since 2012. Don't forget you have the option for the debit card, if you don't want to waste an app for a new credit card (or want to use that app space for something different). 

I used to do all my grocery shopping at Target and Trader Joe's, so the 5% off was nice. My card doesn't see as much use, but I love ordering online with instore pickup, which has kept me from the frustration of dealing with throngs of people in the store and saving money.

[HeavenOhio]

I disagree that store cards are good for builders and rebuilders. Before decent credit is established, the better store cards, e.g. Target and Kohls, tend to come with very low limits. If one gets too many cards like this, it becomes harder to get major cards with good limits. We refer to situations like that as low limit hell.

If you feel the urge to acquire a store card or two, wait until you've established yourself with some major cards. The store cards are more likely to come with usable limits, and they can fill in some rewards gaps that your major cards aren't covering.

It also needs to be kept in mind that unless you live in California, Hawaii, or Massachusetts, the presence of store cards can be detrimental to one's insurance rates. Apparently, those with store cards are more likely to make claims than those who don't have them.

[Andypanda]

I buy anywher between $50 and $400 (once) a month, so the 5% off was worth the hp, and the hp only stays scorable for a year, and drops off totally after 2 years. Biggest problem i have is yiu can't request a cli, and some people, myself included get stuck in a no cli purgatory. Inhave been stuck at $300 for 20 billing periods. Even though i alwayse let a balance post, and pif before due date.