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Target Circle Card review: Maximize rewards and benefits with this newly-revamped retail card

Yahoo Personal Finance· Reuters
Kendall Little
·Senior Writer, Credit Cards
Updated 10 min read

Target recently relaunched its rewards program — including a newly revamped retail credit card. Frequent Target shoppers can get a lot of annual value from this card’s 5% back on purchases, plus some added perks and discounts through the Target Circle program.

If you’re already a Target RedCard member, it also pays to understand these new credit card benefits. You’ll automatically get the same Target Circle™️ Card benefits as new users and see the new branding in-app where your card is connected.

For new and existing users, here’s everything to know about the Target Circle Card and how to maximize your spending with the superstore:

  • Annual fee: $0

  • Welcome offer: Save $50 on a future qualifying purchase after you’re approved

  • Rewards:

    • 5% off Target and Target.com purchases

If you’re approved for a Target Mastercard, you’ll earn rewards on even more:

  • 2% rewards on dining and gas station purchases

  • 1% rewards on everywhere else (outside of Target)

  • More details: In addition to discounts, you’ll get free two-day shipping on eligible Target purchases, an added 30 days (beyond the standard return window) to make returns and exchanges, and access to exclusive cardholder extras and offers.

Target Circle Card carries a steep 29.95% variable APR.

There’s no annual fee to carry the Target Circle Card.

However, the card can help reduce the cost of Target’s revamped rewards program. The standard Target Circle membership is free and comes with benefits like automatic deals when you shop and personalized bonuses based on your shopping habits.

If you upgrade to Target 360 membership, you’ll receive more benefits: unlimited same-day delivery to multiple addresses on orders worth $35 or more, same-day delivery from even more retailers through the Shipt marketplace, and more. There’s also two benefits already included with a Target Circle Card: free two-days shipping on eligible purchases and extended returns. Target 360 membership usually costs $99 annually, but you’ll get membership for $49 per year with your Target Circle card.

Right now, this card’s welcome offer awards $50 savings on a future qualifying Target purchase (totaling over $50) after you’re approved.

There’s no introductory 0% APR for new cardholders. If you carry a balance on the Target Circle Card, you’ll pay interest on it at the ongoing variable APR.

You’ll earn the highest Target Circle Card rewards on your purchases at Target. For each eligible purchase you make, you can get a 5% discount at Target and on Target.com. In practice, the Target Circle Card works more like a real-time discount card than a traditional cash-back credit card.

However, you’ll also earn rewards toward a Target gift card on outside purchases when you have the Target Mastercard version of the card:

  • 2% rewards at gas stations and on dining

  • 1% rewards on all other non-Target purchases

As a baseline, this card earns 5% back at Target stores and on Target.com. This includes Starbucks at in-store Target locations, Target Drive Up services, same-day delivery orders you place on Target.com, and more.

But there are also some important exclusions. Some purchases are not included in the 5% rewards: prescriptions, Target Optical exams, taxes, shipping and delivery fees, Shipt and Target 360 membership fees, and more.

You can earn the 1% and 2% rewards with Target Mastercard each time you use your card to make a purchase. You’ll also earn 1% rewards on certain Target purchases excluded from the 5% discounts. These include: eye exams, clinic services, wireless protection programs for mobile carriers and certain restaurant purchases in stores.

Like other cards, cash advances, fees and interest charges, fraudulent spending, and other non-purchase transactions don’t count toward your Target credit card rewards.

For the 5% rewards on your in-store and online Target purchases, you’ll simply receive your discount each time you make an eligible purchase — it works like an ongoing 5% discount on your Target spending.

If you have a Target Mastercard, redeeming your 1% and 2% rewards is equally as simple. After you’ve earned at least $10, you can choose the amount you want to redeem for a physical or electronic Target gift card through your Target Circle Card online account.

There are a few added benefits for Target shoppers beyond discounts on purchases.

First, you can get extended returns for your purchases. This extends your return or exchange window by 30 days beyond the standard return policy that applies to your individual purchase. The extended return policy does not apply to Target Optical purchases, non-returnable items, mobile phones with a contract, or SNAP-eligible online spending you purchase using both an EBT card and your Target credit card.

You'll also get free shipping when you use your card to make online purchases. This includes free standard shipping on most items and free two-day shipping when eligible. Thousands of items are eligible for two-day shipping, but you’ll see the specific eligibility of your purchases in your cart at checkout.

Finally, your Target Circle Card gives you access to what Target calls “exclusive extras.” You can qualify for these special items or offers based on your location, spending history, and other factors.

Like any retail card, the Target Circle Card is best for frequent Target shoppers.

If you’re already enrolled in the Target Circle rewards program and like the benefits, this could be a solid option for earning even more on your regular spending. It can be especially beneficial if you would get value from the free two-day shipping and extended returns offered to cardholders.

However, it’s not the most versatile credit card. Instead of earning rewards you can collect and redeem for a statement credit or cash, you’ll get 5% off eligible Target spending when you make the purchase. There aren’t any other redemption options available.

With the store card, you’ll also only save money on Target purchases. This can be great for families who use the superstore for groceries, home and garden supplies, toys, clothing, and more—but if you’re not primarily shopping at Target each week, you can probably find better rewards elsewhere.

The Target Mastercard version does add some flexibility. Still, 2% back on rewards categories toward a Target gift card is much less flexible than most general cash-back credit cards available today.

  • 5% back on purchases: Get rewarded immediately on your purchases with 5% off your eligible purchases at Target and Target.com.

  • No annual fee: There’s no annual fee to own this card or to join the Target Circle rewards program. If you want to upgrade to Target 360, you’ll pay a discounted $45 annual membership fee with your Target Circle Card.

  • High APR: The Target Circle Card carries a very high interest rate. To avoid interest altogether, make sure you spend only what you can afford to pay off when your balance is due. You could risk lasting high-interest debt if you carry a balance with this card.

  • Retail card: Unless you qualify for the Target Mastercard, you’ll only be able to use your Target Circle Card to make eligible Target purchases. With both versions of the card, you can only use your rewards to save on Target spending. If you’re looking for more flexibility with the rewards you earn, consider a more general rewards credit card.

Target Circle 360 vs. Walmart+ and Amazon Prime: Which membership program is right for you?

If you have the regular Target Circle Card, you’ll be limited to purchases at Target stores or on Target.com. If you’re upgraded to the Target Mastercard, you can make purchases (and earn rewards) anywhere that accepts Mastercard payments.

You can manage your Target card account, including making payments, by logging in here.

If you want to pay by phone, you can make a one-time payment and schedule your payment up to 30 days in advance by calling 1-800-424-6888. You’ll need your account ID and credit card number.

  • Target offers an automated phone system for cardholders that’s available 24/7 in both English and Spanish. There’s also plenty of info regarding the card on Target’s online help pages.

  • Target Circle Card guest services phone number: 1-800-424-6888

  • Target Circle Card login page

The Target Circle Card may offer solid rewards on Target spending, but there are other great cash-back credit cards today with flexible rewards on a range of everyday purchases. Here are some we like:

Why we like it: The Blue Cash Everyday card from Amex is a great no annual fee credit card (see rates and fees) with cash-back rewards on everyday spending. Plus, you can still score on your Target.com spending with this card. Here’s the rewards breakdown: 3% cash back at U.S. supermarkets, U.S. online retail purchases, and U.S. gas stations, up to $6,000 spent in each category per year, then 1% (plus 1% on everything else).

After you’re approved for the Blue Cash Everyday, you can get a $200 statement credit when you spend $2,000 within the first six months and enjoy a 0% introductory APR on both new purchases and balance transfers.

Why we like it: The Capital One SavorOne card is a no annual fee cash-back card with an even wider range of rewards categories. You’ll earn 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (though the grocery category does exclude superstores like Target and Walmart). Also earn 8% cash back on Capital One Entertainment spending, 5% cash back on hotels and rental cars booked through Capital One Travel, and 1% cash back on all other purchases.

The SavorOne Cash Rewards card also has an introductory APR on new purchases and balance transfers after approval, and you can earn $200 cash back when you spend at least $500 within the first three months.

Why we like it: If building credit is your main goal, the Capital One Quicksilver Secured card can help you begin improving your credit score while you earn rewards. You’ll need a minimum $200 refundable deposit to open the card, which will act as your line of credit. Over time, you can earn an increased credit line (with no additional deposit) and the chance to upgrade to the unsecured Capital One Quicksilver Cash Rewards Credit Card by practicing good credit habits.

There’s no introductory APR or welcome offer, but you will earn an ongoing 1.5% cash back on every purchase you make — regardless of category. When you use your Quicksilver Secured card to book hotels or rental cars through Capital One Travel, you’ll earn a boosted 5% back.

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.