It is impossible for anyone to transact only in cash. One needs to have credit or debit card in order to have a smooth transaction. Target offers both the cards, the first is a credit card, which you can use to make purchases that you’ll pay for later on. The other one is debit card which is useful for payments and the amount is directly deducted from your bank account. FinanceShed brings analysis of both the Target Red cards.
Target Redcard – Debit Card
Target debit card is same as other debit cards and draws fund from your bank account. Target debit card offers an additional 5% discount to customers on the purchases done.
Benefit of Debit Card
The Target Debit card is a great card for many people. Families who buy diapers, groceries, and clothes all the time the 5% is great for them. Those who do plenty of online shopping, free shipping is excellent. Holiday shopping is also a great time to use the Red card as the 5% will go a long way to saving on gifts and gift wrapping. 1% also is donated to a school, so it is great for the community at large.
Disadvantage of Debit Card
The Red card Debit card does come directly from a personal checking account. But it does take a few days to process and does not process on Sundays. So for people who do not make use of a check register or who like withdrawals and deposits to be immediate, this card is not for you. 5% is great but not if the financial processes go against your lifestyle. Another one is that the transactions are batched and processed as ACH transactions much later than a transaction would be processed by your home bank debit card. So, if you have come to expect to manage your account balance electronically in real time you may be surprised by overdrafts when your Target transactions hit a week later. You have to decide if it worth this inconvenience to save 5%.
Target Redcard – Credit Card
The Target REDcard credit card is unique in that it gives shoppers a 5% savings on almost everything bought with the card (conditions do apply) from Target and Target.com including groceries, apparel, home goods, and more. The best feature of this credit card is that this applies your discount automatically and you do not have to wait or count for your reward points. And there’s no annual fee! All Target REDcards are chip-and-PIN cards for higher security.
Disadvantage of this credit cards
The disadvantage is that the discount does not apply to Pharmacy purchases. Cardholders used to earn discounts by filling a certain number of prescriptions and paying for them with the REDcard.
Benefits of these credit cards
There are no annual fees for maintenance of the card. The smartest way of using a credit card is to get the benefit of free early delivery on purchases done from Target.com. You can have early access to special events, productions, and promotional events and trades. You can also get benefit of gift vouchers and Special Extras.