Anyone get the new Target Debit Card?

[irispixie]

My wife and I are intrigued by the new Target Debit Card offer. We shop there regularly for housewares, toiletries, paper goods, some food items and occasional clothing and accessories. Rarely does a week go by without at least one trip to Target. So when we saw the new card advertised, it caught our attention.

The deal is that they now offer a Target Debit Card tied to your bank account. All purchases made with that card (with a few minor exceptions that don't apply to us) get an immediate 5% discount at the time of purchase. No reward points to accumulate or redeem, no certificates to request, no rules to follow.

I've read all of the fine print and I can't see any catch to this deal. It just sounds a little too good to be true that they would give everyone 5% off all purchases just for using this card. I reviewed our credit card statements for the past 6 months and during that time, we spent over $1,600 at Target. This card would have saved us over $80 on those purchases. I'm all ready to sign up but just want to be sure I'm not missing anything so I was wondering if any of you have gotten the card yet and what your experience has been.

Regarding the Target Debit card, it seems like what used to be called the Red Card, is now being called the Target Debit Card. My husband and I have the Target Red Card, which can only be used at Target and no other stores. They give you a limit of how much you can spend; we still have a lousy $500.00 limit, since 2007, no limit increase, like many others have posted on other forms, and we have perfect credit.
We too get asked if we want to apply for a Target Debit card, only when we don’t use our existing Target Red Card. Yes, you do save 5% off your total purchase, each time you use your Target card or now called Target Debit Card. The only drawback to having the Target card, Debit Card, is that the interest rate is very high, 25%. If you don’t pay off your card regularly, interest does add up fast.
We have learned from Clark Howard, it is best to use ANY of your cards, like they were debit cards, withdrawing from your bank account. This way, you are never charged interest and the balance they report to your consumer credit report, will always be within a good ratio of your total limits.
The high interest rate on the card is not good and it can get people into financial trouble, if they don’t spend only what they can afford. The only reason why we are keeping our card is for the 5% discount, each time we shop at Target. Know your budget before walking into Target and never spend more than what you can pay back, when you receive the bill in the mail.

[jpg7n16]

You guys might enjoy this article:

Low, low prices: Target beats Wal-Mart - Yahoo! Shopping

[cashrich]

I just read that its thru VISA.
*** Question - is the 5% discount only in Target Store and Target.com Or I can get 5% discount even at gas station with this card???

[My English Castle]

It's just good at Target. We've had our for about a month now--and I love it!

[meghannderson]

The Target Red Card is a Debit Card. It is NOT a credit card. It does NOT have interest charged to it. It simply takes the money straight out of your account, like your regular debit card does. I think the reason they are pushing this ties into the new charges for debit card use by retailers come July 21, 2011. The card does not have any logo on it, which makes me wonder if I will ever use it again. It scares me that I don't have the same protections as my debit card, but I guess it affords me the same protections as using cash or writing a check. I guess I can always dispute a charge...

I have had money taken out of my account fraudulently before (not with the Target debit card) and I even had a check cashed for the incorrect amount once. Each time my money was immediately refunded to me while the bank investigated. I think it really just depends on your bank.

[clipper11]

i have to go with the debit because i don't qualify for the credit card.

[kv968]

Steve, I'm sure there's no catch with the Target offer. One thing I would do though is not apply online but do it in-store instead. Doing so they may offer you a percentage off of your current purchase above the 5%. I don't know if they do this, but I know with Kohl's if you sign up at checkout they give you something like 10% off your current order just for doing so. It's worth a shot.