Targets REDcard Mastercard is an open-loop credit card, which means that you can use it everywhere MasterCard is accepted. The Target Credit Card does not have any introductory low interest rates, and the cards APR is 22.90%, which is steep, but it is standard for most store cards. The high APR of Targets credit card can result in the interest charges wiping out any savings you get from discounts. The Target RedCard could offer big savings from the 5% off Target Discount for purchases in Target stores and online, especially if you shop Target often.
The Target Credit Card gives consumers a choice between the stores own debit card or the credit card that bears the MasterCard logo–purchases are allowed wherever MasterCard is accepted. Because Target offers both the store charge card and the Target Mastercard, you can apply for the one that fits your needs. Both RedCards are issued by TD Bank, so once you get the Mastercard over the store RedCard charge card, the process for asking to raise the credit limit is the same.
You can get your RedCard credit limit increased at Target either by calling customer service to ask for it, or by using the card more frequently. A credit limit increase for a single card may eliminate the option for you to raise the limit for your other accounts or to open a new one. Keeping your credit cards open could raise your accounts average age and total credit limit available, two factors known for slightly improving your credit score.
The credit limit may be lower on your charge card if your credit is not stellar, as this helps to mitigate financial losses to the banks that issue your card. This card, as well as many store cards, is known for offering lower credit limits initially, but increasing your limit depending on your payment history and use of the card. Some banks will approve store cards to people who have fair credit histories or who are just over 600 in credit. While Target does not specify specifically what credit score is needed, generally speaking, an individual will need a credit score of over 600 to be approved for a charge card or credit card – though stores have approved cards to consumers with lower scores.
You can rest assured that TD Bank U.S.A. will look closely at your overall credit history and scores when evaluating your application. Neither the company nor TD Bank has gone into any details on what information is required when you apply for credit increases. Keep in mind, approval is case-by-case, and applying for a credit limit increase can trigger a hard pull of your credit report.
Tell DoNotPay More about your current income and expenses, and why you want to request an increase in limit, and include if you are willing to have hard inquiries made on your credit report. Tell us more about your card, like when you first created that card, your current credit limit, what you would like your new limit to be, your card number, and if you have missed any payments in the past. Insider Tip If you are confused by all of the numbers in your credit card bill, like available credit, minimum due, and statements How to raise the targeted card limit Read our Guide to Credit Card Bill Payments to be the expert. A customer service representative will respond soon, and you can continue asking for an audit on whether or not you are eligible for a limit increase on your credit card.
Even if you use your card only rarely, it is well worth holding on to, as RedCard provides access to exclusive, limited-time discounts on top of everyday savings. Keep in mind, however, that RedCards 5 percent savings are applied to your cards total spending after any other discounts are applied. If you are already doing the majority of your household spending there (which is possible with a retailer the size of Target), a 5% discount is plenty of potential savings, so this is one of the best store credit cards NerdWallet has ever reviewed.
If you do not often spend at Target, chances are that there is a better cash-back card for you. We also recommend using a card that gives you cash back and rewards for making purchases at other stores, restaurants, online — pretty much everywhere. Once you have improved your credit with a secured card, you may want to look into better rewards cards, cash-back cards, and travel cards, which often provide better long-term benefits than most store cards, including a few discounts on purchases to help save you money. You are better off getting a standalone card for your other purchases, such as Citi(r) Double Cash Card, which offers 2% off each purchase, with an unlimited 1% cash back when you shop, plus another 1% once you have paid off those purchases, or Blue Cash Preferred(r) card from American Express, which is one of the best grocery cards if you are doing your grocery shopping at traditional supermarkets.
I would be far better off applying for a generic rewards credit card, which could offer me a sign-up bonus that I could ultimately use to offset my Target purchases that day, and that would reward all of my spending elsewhere. I opened the Target REDcard(tm) Credit Card in the mid-aughts, after a little bit of sleaze from the cashier, who promised I could instantly save on my purchases that day by filling out the in-store application.
As you can probably guess, putting so many daily purchases on my Target Card, I ran up against its credit limits – frequently. Not only did I not get that same 5 percent off, I also ran up huge interest charges, and my credit utilization ballooned. Upgrading, which I did, used the card just about everywhere except at Target, defeating the purpose of the card, leaving me with nothing to show for it except an ever-higher interest rate.
Last Updated on June 9, 2022