Target does not offer a traditional charge account, but it does offer a RedCard credit option

Target stopped issuing its older Visa-branded credit card and replaced it with the Target RedCard, which functions as a credit card rather than a charge account. A charge account requires you to pay the full balance each month, while a credit card lets you carry a balance and pay interest on what you owe. The RedCard is the latter—it's a credit product, not a charge account.

If you're looking for a way to pay at Target on credit, the RedCard is your main option through the company itself. You can also use any major credit card (Visa, Mastercard, American Express, Discover) at Target stores and online, but those are issued by banks, not by Target.

Key Takeaways

  • Target's RedCard is a credit card that lets you carry a balance month to month, not a charge account that requires full monthly payment.
  • You can open a RedCard through Target's website or in-store, and it works at Target locations and online.
  • Target also accepts all major credit cards from other banks, so you're not limited to the RedCard if you want to use credit at Target.
  • The RedCard comes with a debit option as well, which draws directly from your bank account instead of creating a credit balance.

How the Target RedCard works

The RedCard is issued by Synchrony Bank and carries an interest rate that varies based on your creditworthiness. When you use it, you're borrowing money from Synchrony, not from Target. You receive a monthly statement showing what you owe, and you can pay the full balance, make a minimum payment, or pay any amount in between. If you don't pay the full balance, interest accrues on the remaining amount.

The card also comes with a rewards program: you earn 5% back on most Target purchases when you use the RedCard in-store or online, 2% back at gas stations and restaurants, and 1% back everywhere else. These rewards appear as a statement credit or can be redeemed in Target stores.

The difference between a RedCard and a charge account

A charge account (sometimes called a charge card) requires you to pay your entire balance when your statement arrives each month. You don't carry a balance forward, and you don't pay interest because there's no debt. American Express offers some charge cards, but they're rare in retail.

The RedCard is a revolving credit account, which means you can borrow up to your credit limit, pay part of it back, and borrow again. This flexibility costs money if you don't pay in full—Synchrony charges interest on unpaid balances. If you prefer to pay in full each month anyway, the RedCard still works for you and gives you the 5% rewards benefit.

How to open a Target RedCard

You can open a RedCard online through Target's website or in a Target store. The process takes a few minutes and asks for your name, address, date of birth, Social Security number, and income information. Synchrony will pull your credit report to make a decision, which happens when ready or within a few minutes in most cases.

If you're approved, you can use the card when ready in-store (they'll issue a temporary number at checkout) or online. A physical card arrives by mail within 7 to 10 business days. If you're denied, Synchrony will send you a letter explaining why, and you can dispute any errors on your credit report with the credit bureaus.

The RedCard debit option

Target also offers a RedCard debit version, which is not a credit product at all. This version links directly to your bank account and works like a debit card—you can only spend money you already have. It still earns the same 5% rewards at Target, but there's no credit line, no interest charges, and no impact on your credit report.

If you want the Target rewards without taking on credit debt, the debit RedCard is worth considering. You explore the same way, but the approval is faster because Synchrony doesn't need to assess your creditworthiness.

What happens if you're denied for a RedCard

Synchrony denies RedCard applications for reasons like a low credit score, recent missed payments, high existing debt, or too many recent credit inquiries. A denial doesn't prevent you from shopping at Target—you can still use any other credit card or pay with cash or debit.

If you were denied, you can ask Synchrony for the specific reason and check your credit report for errors. You can also reapply after a few months if you've improved your credit situation. In the meantime, using the RedCard debit version or another credit card gets you access to credit at Target without waiting.

Comparing the RedCard to other credit options at Target

The RedCard is Target's branded option, but it's not your only choice. Visa, Mastercard, American Express, and Discover all work at Target and online. Those cards are issued by banks, not Target, and they don't earn the 5% Target-specific rewards that the RedCard does.

If you already have a credit card from another bank and don't want another account, you can use that instead. The trade-off is that you won't earn the extra Target rewards. If you shop at Target regularly, the 5% back on most purchases can add up—a $100 purchase earns $5 in rewards with the RedCard versus $0 with a generic card.

Frequently Asked Questions

Can I use my RedCard outside of Target?

The Target RedCard credit card only works at Target stores and Target.com. It's not a Visa or Mastercard, so you can't use it at other retailers. If you need a card that works everywhere, use a different credit card or the RedCard debit version, which works at any store that accepts debit cards.

What's the credit limit on a RedCard?

Your credit limit depends on your credit score, income, and credit history. Synchrony doesn't publish a standard limit, so it varies from person to person. You'll see your limit when you open the account or check your online account dashboard.

Do I have to pay interest on my RedCard balance?

Only if you carry a balance past your statement due date. If you pay the full balance each month, you pay no interest. The interest rate varies but typically ranges from 18% to 25% APR depending on your creditworthiness.

How long does it take to get approved for a RedCard?

Most decisions happen when ready or within a few minutes. If Synchrony needs more information, they may take up to a few business days. You'll receive a decision notification by email or mail, and if approved, you can use the card when ready in-store.

Can I convert my RedCard credit card to the debit version?

You would need to close the credit card and open a new debit account. Contact Target customer service or Synchrony to discuss your options, as the process may vary. Closing the credit card could affect your credit score, so consider whether the switch is worth it.