Target Circle Card Review: What You Need to Know After the Rebrand

Have you heard about Target Red Card going away? If you are a loyal Target shopper, you don’t need to worry—Target’s popular card hasn’t gone away; it’s simply been rebranded as Target Circle Card. This change aligns with Target’s new paid membership program, Target Circle 360, so now all the products share a consistent name and design.

Is Target Circle a credit card? Is Target Circle free? Keep reading to find answers to these questions and to explore the pros and cons of Target’s newly branded card.

What is a Target Circle Card?

Straight out of the gate, the Target Circle Card is tailored mainly for in-store purchases, but there are some interesting twists. It currently comes in three versions:

• Target debit: This option hooks directly into your existing checking account, working just like a standard debit card but with Target perks baked in.
• Target credit: If you’ve ever wondered, “Does Target have a credit card?” Well, here it is. With the credit version, your purchases won’t pull from your bank account immediately; Instead, you’ll receive a monthly bill for repayment. Initially issued as an in-store card, in a few months of on-time payments, it can be upgraded to an “open-loop” Mastercard, meaning you can use it wherever Mastercard is accepted, not just at Target.
• Reloadable card: This one packs most of the perks of the credit and debit cards. You can load cash onto it for free at Target and then use it wherever Visa is accepted.

You can pick one of the options when applying online at Target website. But before you dive in, let’s unpack the benefits each version brings to the table.

Target Circle Card Advantages

Created for frequent shoppers across the U.S., both Target Circle credit card and debit one come loaded with benefits:

• $50 Newcomer Coupon: New applicants get a $50 discount coupon after their debit or credit card approval. You can apply it to any Target purchase of $50 or more within 30 days.
• 5% Ongoing Discount: Target offers a 5% generous immediate discount for all purchases made in-store or online. So, if you’re spending around $1,000 a month at Target, that’s an extra $50 in your pocket.
• Extended Return Period: Enjoy an additional 30 days for returns on eligible items—great for impulse buys or those unplanned purchases.
• Free 2-Day Shipping: Skip the trip with free 2-day shipping on thousands of items at Target.com, perfect for online shoppers looking to save time and gas.
• Groceries and Baby Essentials Savings: Save up to $675 on groceries annually and up to $500 on baby products essentials during your little one’s first year.
• Exclusive Offers: Target Circle cardholders get access to special discounts, personalized deals, and surprise perks throughout the year. Those add-ons vary across locations and markets.

Notably, the Target Circle debit card and credit card are also tied to Target’s loyalty program, which means that as soon as you get any of them, you’re automatically enrolled in the program and can start reaping loyalty benefits right away.

Debit Card Pluses

The debit card is an ideal option for shoppers who want to reap the Target-specific perks without taking on another credit card. Since the funds come straight from your bank account, it’s easier to keep tabs on your spending to avoid overdrafts fees. Besides, there’s no additional bill to worry about each month.

Credit Card Pluses

If you’re looking to spread out payments, the credit card offers a 25-day no-interest grace period, which can come in handy. With no annual fee in place, it won’t weigh down your budget.

Target also keeps qualification requirements fairly flexible, making it a solid choice for people with a fair to bad credit score seeking to build their credit history. Over time, responsible use can lead to an upgrade to the Target Mastercard with a higher credit limit, which is acceptable not only within the network but also beyond Target stores—anywhere the Mastercard is valid. On top of that, you’ll earn 2% on dining and gas and 1% on other eligible non-Target purchases.

Target Circle Card Disadvantages

One of the biggest drawbacks to the Target Circle Card is its mostly “closed-loop” nature, restricting its use beyond this chain of discount department stores. This restriction may turn off shoppers who want more flexibility to spend and are able to use them at various retailers.

Also, while the Circle credit card does offer some perks, they’re not as extensive as those found on other reward-heavy cards. So, users may find themselves missing out on opportunities to gain more rewards for purchases outside of Target.

Another thing to keep in mind is the high APR of 29.95%, which can quickly cancel out that 5% discount if you’re carrying a balance. If you don’t pay off the card in full each month, interest charges could start eating into your budget.

Depending on your shopping habits and spending style, you may want to consider other debit and credit cards that offer broader rewards programs and are accepted more widely. A prepaid card could also be a good alternative if you prefer to keep Target-specific funds separate from your main account.

Final Thought

Both the credit and debit versions of the Target Circle Card come packed with value for dedicated Target shoppers. As such, it truly hits the bullseye for loyal Target customers who find themselves making the bulk of their purchases within this retail network. In the meantime, for those who only swing by Target on occasion, or who prefer a more versatile rewards program, it might be wise to explore other alternatives available on the market.