Get This: Target REDcard Debit Card

The following tip is best suited for Target shoppers...

Normally, I'd tell you to avoid in-store credit cards like those offered by Macy's, Home Depot, Brooks Brothers, etc. unless they're offering an enticement valued at least $400 (e,g,, 20% off a $2,000 purchase). The reason for this advice is that each one of those credit applications involves a hard pull of your credit, which will lower your credit score.  You want to save those hard pulls for when they're needed or most valuable, such as when refinancing a mortgage, getting a new car loan, or taking advantage of a top shelf credit card sign-up offer.

So, why am I telling you to get a Target REDcard debit card?  Because it's a DEBIT card, not a credit card.  Applying for the debit card version of the REDcard does not involve a hard credit pull like the credit card version, but it offers the same benefits, namely 5% off most Target purchases and free shipping from Target.com.   

Target Debit Card: All the Benefits of the Credit Version

To get the REDcard debit card you need to apply in-person and bring a voided check. When you make your purchase, the card will behave like a bank debit card and withdraw the funds directly from your checking account.  You can even use it to get cash at checkout.

Since you already learned to maximize reward credit cards, you'll use your new REDcard debit card for all of your in-store and online purchases at Target.  At checkout, you'll see an immediate 5% reduction of your total cost, so the savings are instantaneous.

Furthermore, when shopping at Target.com, you should use a cash back portal to stretch your value even further.  Both Mr Rebates and Ebates currently offer 4% cash back, so combining your REDcard with a cash back portal will stretch your savings by 9%!

Fancy Graphic: Tip Wouldn't Be Complete Without It