Should You Get a Target Credit Card if You Shop There a Lot?

It could be a wise move due to the many perks involved.

Many consumers absolutely love shopping at Target. And it's pretty easy to see why. Target offers a wide range of products at competitive price points. And let's face -- if your Target location is well-stocked, shopping there could be a fun experience.

Now, if you've been known to shop at Target often -- whether in person or online -- then you may be toying with the idea of opening a Target credit card. But should you?

A card that's loaded with perks

There are lots of benefits to signing up for Target's credit card, called the Target RedCard. Before we go any further, though, it's worth noting that there are two versions of the Target RedCard -- a credit card and a debit card. In this discussion, we're talking about the former.

One of the most enticing benefits of the Target RedCard is that it gives you 5% off of purchases at Target -- both in stores and online. That could amount to a lot of savings. Plus, with the Target RedCard, you'll score free two-day shipping for online orders. And you'll get on an email list that gives you access to special offers.

Plus, the Target RedCard doesn't charge an annual or monthly fee (though you may be assessed fees for any late payments). And the card will also give you an additional 30 days to make returns and exchanges at Target beyond the retailer's standard window.

Reasons not to sign up for a Target credit card

The Target RedCard really is a great option for people who shop at Target a lot. But it may not be a good idea for you to sign up.

If you already have a lot of credit card debt, then you should really work on paying it off before adding any new credit cards to your personal mix. So in that case, waiting on the Target RedCard makes sense.

Perhaps you're planning to apply for a large loan, like a mortgage, in the near future. In that case, holding off is also a good bet. Your credit score plays a big role in determining whether you qualify for a mortgage or not, and every time you apply for a new credit card, it results in a hard inquiry on your credit report. That, in turn, delivers a small hit to your credit score.

Normally, a five- or 10-point drop in your credit score may not be a big deal. But you don't necessarily want to take that hit right before you're applying for what could be a $300,000 loan, just in case.

All told, signing up for a Target credit card could work to your benefit, especially if you're confident in your ability to pay your bills on time every month without having to carry a balance forward. But if you're trying to work off credit card debt or apply for a large loan, then waiting on the Target RedCard is probably your safer option.

Remember, too, that just as with any credit card, you may need to meet certain credit score requirements to get approved for a Target RedCard. So if your credit score could use work, that's yet another reason to hold off.