Caution: Target Discounts Come at a Very High Price
Written: Feb 06 '07
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Pros: Can be used anywhere Visa is accepted, cash advances available
Cons: Exorbitant interest rates, terrible customer service
The Bottom Line: While I enjoyed having the Target RedCard while rebuilding credit, I would not recommend the TargetVisa. If they'll approve you, so will someone else with a lower interest rate.
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| meagandowney's Full Review: Target Visa |
Three years ago, I was focused on repairing my credit and applied for the Target RedCard. While limits were low and interest rates were high, I didn't expect much considering my low credit score. It seemed a natural progression to stick with the same company when it was time for my "real" card. I also wasn't confident in my ability to shop around for credit.
I used the card for a year and a half, and my last payment was cause for celebration.
But The Discounts!
Target reels people in with a 10% discount for the first purchase and the promise of rewards that increase in proportion to the amount you spend on the card. I spent between $100 and $300 each month at Target, but was rarely able to use them. They came as little red slips inserted with my bill, and they usually related to some assumed shopping event I would not be participating in, such as Back to School sales and home decorating specials. It wasn't that I never bought the things they offered discounts on. It was just that my timing was off. I had just spent my home decorating budget when they offered a discount or decided to shop for school supplies elsewhere.
I did use one of the straight discounts once and saved $10 on a bicycle, but my meager "rewards" didn't make TargetVisa competitive. If they tied the rewards to the actual card so that I could use the rewards automatically without worrying about shopping dates and little red slips of paper, I may have felt differently.
The Interest Rate is WHAT?!
Even if I'd taken full advantage of every discount, the interest rate sucks. I was offered the highest interest rate in spite of my spotless history with the RedCard (thanks, Target!) which fell between 20-25%. If I'd had perfect credit, I'd have received a 13.24% interest rate, but I challenge you to find a consumer who is actually offered that rate. I invite you to prove me wrong by writing an epinion about it. I hope (but doubt) you can.
The penalty rate is nearly 30% and the late fees range from $15-$35. Cash advances are available for a 3% transaction fee and a 25% interest rate, but I never used them. Limits aren't as low as with the RedCard, but they're still low. When Target refused to raise my limit for a one time purchase (after a year of payments), CitiBank offered me a limit that was twice as high with a 0% interest rate. Needless to say, I opened the CitiCard and paid the TargetVisa off promptly.
They Treat You Like Crap
Customer service was another frustrating aspect to the experience. They were often unavailable or unable to accept checks by phone. They could "see" that I had made a payment but prevented me from completing transactions for alleged late payments. Luckily, they did not screw up my credit rating, but threatened to on occasions when my payment arrived within 5 days from the due date - whether I was early or late.
You can register for automatic bill pay or pay online, but I found the website frustrating to use. I had to reregister 3 different times and was often declined access to my account or asked to call customer service. It was a hassle.
The moment you're registered as late, you're forced to talk to a credit counselor when you call whether you have a payment pending or not. In essence, you are treated like a child who needs a spanking instead of an adult who is paying through the nose for something they can get much cheaper from a competitor.
My credit score is now in the 770's, and I owe none of it to TargetVisa. This epinion is really sweet justice for all of the headaches they caused me. If I've saved just one customer from TargetVisa, my work here is done.
For More Information
Full disclosure of current APRs, fees and TargetVisa benefits, such as identity theft protection and Pharmacy Rewards, are listed on the www.target.com site. Scroll all the way down to the bottom of the home page. The link is usually on the right. If you choose to click "Apply Now," don't say I didn't warn 'ya.
Recommended:
No
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Epinions.com ID:
meagandowney
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 in Online Stores & Services |
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Member: Meagan Downey
Location: Chicago, IL
Reviews written: 358
Trusted by: 218 members
About Me:Can't find the online store or service you'd like to review? Request it here.
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