Target store cards offer a 5% discount on eligible purchases, but using them requires careful consideration to avoid common pitfalls. Here's what you need to know about Target credit cards and how to use them responsibly.

Understanding Target Card Options

Target offers three payment cards:

• Target Circle™ Credit Card (store-only use)
• Target Circle™ Debit Card (store-only use)
• Target Circle Mastercard (can be used anywhere, available as an upgrade)

All cards offer a 5% discount at Target with no annual fee.

Common Mistakes to Avoid

1. Using the Card Outside Target

• The Mastercard version tempts users to make purchases elsewhere
• No rewards earned on non-Target purchases
• High APR (28.95% Variable) makes carrying balances expensive

2. Maxing Out Credit Limits

• High utilization negatively impacts credit scores
• Aim to keep utilization below 30%
• Avoid treating credit limits as extra income

3. Making Only Minimum Payments

• Interest charges quickly eliminate the 5% discount benefit
• High APR makes debt accumulate rapidly
• Pay full balance monthly to maximize card benefits

4. Closing the Account Impulsively

• Reducing average account age can hurt credit scores
• Consider keeping the account open with occasional use
• Regular Target shoppers benefit from the ongoing 5% discount

Best Practices for Target Cards

• Use only for Target purchases
• Pay balances in full each month
• Keep utilization low
• Consider a general rewards card for non-Target purchases
• Maintain the account for credit history benefits

For frequent Target shoppers who can pay balances in full, the 5% discount provides valuable savings. However, those carrying balances or shopping elsewhere should consider general rewards cards with lower APRs instead.

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