Shopping Experts: Is a Target Circle Card Worth It in 2024?

Earlier this year, big-box retailer Target announced that it would be changing its REDCard to the Target Circle Card. The change comes along with a number of others in an attempt to enhance customer experience throughout its locations. As with the Target REDCard, shoppers will still receive an extra 5% off of purchases every day and other perks. But the question remains, is the store card worth it in 2024 if you’re looking to save money?

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At GOBankingRates, we asked shopping experts nationwide to provide insight into why people might want to sign up for the Target Circle Card or avoid the plastic altogether. Here is what they had to say about the Target Circle Card this year.

What Is the Target Circle Card?

On March 5, 2024, Target announced it would be changing its Target REDCard to the Target Circle Card. The Target REDCard (encompassing Target Debit Card, Target Credit Card, Target

Mastercard^® and Target Circle Card Account) gives customers a 5% discount on every purchase. This reward is automatically applied at checkout and is one of the top perks associated with the card. While there are certain limitations to the 5% discount, including prescriptions, eye exams and Target gift cards, most other purchases apply.

Under the new branding, customers will still enjoy the 5% discount at checkout and a number of other benefits, such as longer return periods and free two-day shipping on many items. You will also save $50 on a future qualifying purchase when you are approved for a Target Circle Card (formerly Target REDCard).

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What Are the Fees for a Target Circle Card?

While there are no monthly or annual fees associated with a Target Circle Card, there is an annual percentage rate (APR) of 29.95% for purchases when the Target Mastercard or Target credit card is used. You will also receive a penalty for late or returned payments.

Is the Target Circle Card Worth It in 2024?

Financial experts consistently advise against incurring credit card debt, particularly those with a high APR. According to CNN, the average APR for credit cards in February 2024 was 22.63%. With the Target Circle Card being over 7% higher than the average card, consumers need to weigh whether the benefits, such as the 5% discount on purchases, are worth the elevated rate.

Abid Salahi, co-founder of FinlyWealth, said, “The Target [Circl Card] undoubtedly offers substantial savings for frequent Target shoppers. It provides a compelling 5% discount on nearly all purchases made at Target stores and on Target.com. This translates into significant savings over time, particularly for families and individuals who regularly shop at Target for various household needs. According to Target’s internal data, the average [Circle Card] holder saves approximately $300 annually through the 5% discount.”

When asked whether the Target Circle Card was worth it, Nguyen Huy, founder of Trendy Aloha, said, “It really depends on your shopping habits and what you’re looking for in a credit card.”

The consumer trend analyst explained, “You get an automatic 5% discount on almost everything you buy at Target, both in-store and online. This discount can add up quickly if you find yourself at Target often, making it a valuable perk for regular shoppers.”

He also noted the other perks, such as the extra 30 days to return items, as an enticing incentive.

While this extended return policy applies to most items, it does have some exceptions. Things like Target Optical purchases, nonreturnable items and contract mobile phones are not included.

Who Should Not Get the Target Circle Card This Year?

While frequent Target shoppers may want to consider applying for the Target Circle Card, some consumers should stay away from the plastic. For instance, people who struggle to pay their credit card bills on time or those with huge amounts of debt may want to think twice before snagging the store credit card.

“​​If you’re not a frequent Target shopper, the [Circle Card] might not be as beneficial,” Huy said. “Its rewards are pretty much limited to Target purchases, so if you prefer a card that offers rewards across a variety of stores, you might want to consider alternatives like the American Express Blue Cash Preferred, which offers cash back on groceries and other essentials, or a Discover card with rotating 5% cash back categories.”

Salahi, an avid Target shopper and Circle Card holder, said, “​​It’s essential to note that the [Circle Card] is a store credit card, which means it can only be used at Target and does not offer the flexibility of a traditional credit card that can be used anywhere. Therefore, individuals who rarely shop at Target or prefer to consolidate their spending on a more versatile rewards card may find the [Circle Card] less appealing.”

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