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Target Is Rebranding Its Credit Card Program: What You Should Know

Your Target RedCard soon will be getting a facelift.

Target recently announced that it will be refocusing its credit card branding to fit an increased emphasis on its revamped Target Circle rewards program.

So what does that mean for existing and potential Target credit card holders? Will you still be able to enjoy 5% back on purchases? Will there be any cool new perks associated with the rebranding?

Let’s try to answer some of those questions and more with the information we have so far.

1. Target RedCard Will Become Target Circle Card

Let’s start with the most obvious change: The branding.

The Target RedCard, which is a popular choice for the superstore’s loyal customers because it earns 5% back on most Target purchases, will soon be no more.

In its place will be the Target Circle Card.

Like the RedCard, the Circle Card will be offered in a debit, credit or reloadable form.

Customers who already have one of the three RedCards can expect to receive an updated version of their card branded as a Circle Card.

Here’s a snippet from Target addressing the change for existing RedCard holders:

"There is nothing you need to do if you already have a RedCard. You can continue to use it and enjoy the same benefits. You'll see the new Target Circle Card branding reflected automatically in the Target app starting April 7 if your card is connected there. If you have a physical RedCard, you'll receive a new Target Circle Card via mail closer to your card expiration date."

2. 5% Back on Purchases Will Still Be the Name of the Game

New branding, same cash back rewards policy.

Existing RedCard holders can rest easy knowing that their 5% back perk for Target purchases is not going away.

In fact, it appears that all of your existing perks, including the free two-day shipping for online purchases and extended return policy, will stay intact.

3. What Is Target Circle and Why Is This Happening?

So if they’re keeping all of the credit card perks the same, you may be wondering why Target is bothering to put you through this rebranding process.

The short answer is: They're launching a subscription product called Target Circle 360 in April 2024 and offering a discount for the new subscription if you have the credit card.

Target Circle is an existing free membership that offers shoppers some discounts and perks. Target Circle 360 will be an enhanced version of this product that costs money and appears to be aimed at competing with Walmart+ and Amazon Prime in the online shopping space.

Let’s take a little closer look at the program description for each to help you understand if either is a good fit for you in addition to your credit card membership.

Target Circle Description

Target Circle has been popular with regular customers because it’s free to join and offers discounts and even cash back on purchases. However, as a part of the upcoming changes, Target announced that it will no longer offer 1% back to Target Circle members on the free tier.

Here’s what Target says the new Circle program will offer instead:

“Target Circle is the free and easy way to get the most deals at Target. When you become a Target Circle member for free, you’ll:

  • Get access to deals automatically applied at checkout
  • Earn Target Circle Rewards and save with personalized deals
  • Redeem free trials and link to other rewards programs, and
  • Help direct where Target gives in your community.

You can access your deals and Target Circle Rewards in-store or online.”

Target Circle 360 Description

If you want to take your Target Circle membership to the next level, you’ll be able to do so beginning April 7, 2024.

Target Circle 360 will cost $99 per year and offers a variety of expedited delivery options for online shopping.

“Target Circle 360 is a delivery option where you can enjoy getting items from your local Target to your door. When you become a Target Circle 360 member, you’ll:

  • Get unlimited Same Day Delivery in as little as an hour to multiple addresses
  • Shop with more access to dozens of retailers through the Shipt Marketplace
  • Enjoy no-rush returns with an extra 30 days
  • Get free 2-day shipping on hundreds of thousands of items"

4. Target Credit Card Holders Will Get a Limited-Time Discount on Target Circle 360

If the new Target Circle 360 subscription sounds like a fit for you, I have some good news.

New and existing Target RedCard (soon-to-be Target Circle Card) holders will receive a limited-time discount on Target Circle 360 membership.

Target says that cardholders will get $50 off the annual subscription fee if they sign up between April 7 and May 18. This means you could get a year of Target Circle 360 for just $49 by paying with your Target card.

The deal is only good for your first year of membership, though. You’d be set for a $99 renewal at the end of your first year.

Note: This is not a credit card annual fee. You are not required to subscribe to Target Circle 360 if you have a Target card. The Target Circle Card will have no annual fee. This is consistent with the current Target RedCard policy.

What is your opinion on this Target Circle rebrand? Will you sign up for the new subscription service? Will any of this make you more or less likely to apply for a Target credit card? We’d love to hear your thoughts in the Clark.com community.

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