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5 things to know about the Target RedCard

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Fans of Target can benefit from top-of-the-line discounts and exclusive perks with the Target RedCard™. Cardholders receive inst rewards at the retailer that can add up to instant savings on your Target runs.

The RedCard is a store card, which means it can only be used on purchases at Target and Target.com. However, frequent Target shoppers can benefit from this no annual fee card.

Below, CNBC Select shares five things to know before applying for the Target RedCard.

1. 5% discount on eligible purchases

Target RedCard holders receive a 5% discount at checkout on most purchases in-store and at Target.com. This is a great way to save instantly on your Target runs. You don't accrue points like other rewards and cash-back credit cards, but you also don't have to jump through hoops to redeem them.

The 5% discount does not apply to the following:

  • Prescriptions, over-the-counter items located behind the pharmacy counter and clinic services at Target
  • Target Optical™ eye exams (Target Optical products, such as glasses and contact lenses, do receive the 5% discount)
  • Target gift cards and prepaid cards, Stockpile, Gift of College and lottery gift cards
  • Previous purchases
  • Certain restaurant merchants in Target stores, such as D'Amico & Sons Italian Kitchen and Pret A Manger
  • Target credit account payments, Target Debit Card cash back and cash advances on the Target Mastercard
  • Shipt membership fees
  • Alcohol purchases in Indiana
  • Gift wrap and shipping and handling charges on Target.com purchases
  • Wireless protection program purchases and deposits required by mobile carrier
  • Where otherwise prohibited by law

2. Free two-day shipping on eligible orders

RedCard holders receive free two-day shipping on hundreds of thousands of items from Target.com — without the $35 minimum purchase amount required for non-cardholders. This offer applies on standard shipping to all 50 states, D.C., APO/FPO addresses and Puerto Rico.

If you upgrade your shipping method, shipping fees will apply. Select items may require a minimum purchase amount before the order will be shipped. And orders delivered by Shipt may have a delivery fee.

3. Additional 30 days for returns and exchanges

Cardholders receive 30 additional days to return purchases beyond the standard 90-day return policy. Extended returns do not apply to Target Optical™ purchases and non-returnable items.

4. RedCard exclusives

RedCard holders can benefit from various exclusives, such as special items, gifts and offers throughout the year. Note that every exclusive extra may not be available to every cardholder.

Cardholders receive a coupon for 10% off a purchase every account anniversary year, when you're signed up for Target marketing emails.

5. High interest rate

Store cards are known for having high interest rates, which is why experts often warn against opening one. The RedCard has a 24.65% variable APR, which can add up to costly interest charges if you carry a balance (and completely negate the 5% savings). But if you're a responsible cardholder and pay off your bill in full every month, you can avoid interest charges and other expensive mistakes commonly made with store cards.

Information about the Target RedCard™ has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.