Target Circle Card credit card review: A bull’s-eye for Target shoppers

Target Circle Card credit card overview

The Target Circle™ Mastercard is a solid store card. It features a 5% discount on Target and Target.com purchases, 2% back on dining and gas station purchases and 1% back on everything else. This is a strong contender for those who spend big at Target — but not elsewhere. Card rating*: ⭐⭐½

*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.

With everything from clothes and electronics to diapers and groceries, shopping at Target is as close to one-stop shopping as possible. If you spend much of your budget here, you can benefit from the savings and benefits the Target Circle card credit card offers.

The Circle card has no annual fee, and TPG recommends a credit score of 690 or higher for the best chance of approval.

Let's break down the Target Circle Mastercard's perks and earning structure to help you decide if it's a good fit for you.

The information for the Target Circle Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: Everything you need to know about Target Circle

Target Circle Card pros and cons

Target Circle Card welcome offer

The Target Circle card offers a decent welcome offer for a store card. After approval, you'll get a coupon in the mail for $50 off a qualifying purchase of more than $50. Once you receive the coupon, you must upload it to the Target app and redeem it within 30 days.

Unfortunately, this coupon has a long list of exclusions — including Apple products, dairy milk, Dyson, gift cards, limited-time designer partnerships, PlayStation products and more. Still, this welcome offer doesn't have a spending requirement, so you can get value from it with minimal effort.

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Related: This month's best welcome offers

Target Circle Card benefits

As a Target Circle cardholder, you'll get free two-day shipping on online Target orders, an additional 30 days for Target returns and exchanges and access to Circle card exclusive special offers and items.

Cardholders will also enjoy a 5% discount at in-store Starbucks and on certain services. Plus, you'll receive a 5% discount on specialty gift cards, drive-up orders and same-day delivery.

Related: Credit card perks and benefits you should be using

Earning rewards on the Target Circle Card

The Circle card's earning structure is different from most reward cards.

Instead of earning points or cash-back rewards at Target, this card's most valuable benefit is a 5% savings on most in-store and online Target purchases (exceptions apply, such as prescriptions and certain gift cards). This structure is especially great for anyone who doesn't want to keep up with earning rewards since these savings are automatic.

Apart from the discount on Target purchases, you'll earn 2% cash back on dining and gas purchases and 1% on all other purchases outside of Target, allowing you to earn rewards everywhere you spend.

Note that there is also a version of the Target Circle card that is a reloadable Visa and doesn't earn rewards on purchases outside of Target.

Related: Maximize your earnings this year

Redeeming rewards on the Target Circle Card

You'll get a 5% automatic discount on most purchases when shopping in-store or online with Target.

However, spending elsewhere is more complicated. You must first earn at least $10 in rewards. To redeem them, you'll need to go online or call to request an electronic or physical gift card to use at Target. This is a more complicated process than most other cash-back cards, which offer statement credits as the easiest method to redeem rewards.

Target states that if your account is closed for any reason, you will have 135 days from the date the account was closed to redeem your rewards. Aside from this circumstance, rewards do not expire.

Related: What is a rewards credit card and how does it work?

What cards compete with the Target Circle Card?

If you don't spend the majority of your budget at Target, you should consider a different card.

• If you want solid earnings on all your purchases: The Citi Double Cash® Card (see rates and fees) earns 2% back on all purchases (1% when you make a purchase, 1% when you pay it off). With it, you won't have to worry about whether you're shopping at the right place to get your best earnings. To learn more, check out our full review of the Citi Double Cash.
• If you spend more of your budget at Amazon than at Target: The Prime Visa (see rates and fees) has a similar earning structure as the Target Circle card, earning 5% back on Amazon, Whole Foods Market and Chase Travel℠ purchases, 2% back at restaurants, gas stations, local transit and commuting (including ride-hailing) and 1% back on all other purchases. Prime Visa cardholders can also earn 10% or more on a rotating selection of items and categories on Amazon.com. While it doesn't carry an annual fee, you must be an Amazon Prime member to get this card. To learn more, check out our full review of the Prime Visa.
• If you want to earn 5% at multiple merchants: The Chase Freedom Flex® (see rates and fees) earns 5% back on quarterly rotating categories on up to $1,500 in combined purchases each quarter you activate (then 1%). Categories can include grocery stores, gyms and even Target, giving you a wider range of opportunities to maximize your cash back. It also earns 5% back on Chase Travel, 3% back on dining at restaurants (including takeout and eligible delivery services) and drugstore purchases and 1% on all other purchases. To learn more, check out our full review of the Chase Freedom Flex.

For additional options, check out our full list of best store credit cards and best cash-back cards.

Related: Store vs. cash-back cards: Which one should I get?

Is the Target Circle Card worth it?

The Target Circle Card doesn't carry an annual fee and earns 5% back on Target purchases. However, getting it can mean sacrificing greater earnings you would receive with a different card. Plus, redeeming your rewards is a more complicated process than with most other cash-back cards. Calculate your expected savings before applying for this card and compare them with what you would earn on other cash-back and store cards.

It's worth noting that there is a debit card version of the Target Circle card, which enjoys many of the same perks as the Target Circle Mastercard. We generally recommend putting all your spending on a credit card, but if you're a frequent shopper at Target, it may be worth considering the Circle debit card for the Target savings and perks without a hard inquiry on your credit report.

Related: How to choose the best credit card for you

Bottom line

The Target Circle card is a great option for regular Target shoppers who want a simple rewards structure. However, compare the rewards you'll earn on it against those you could earn on an alternative card. This card is aimed at loyalists who want to hit the bull's-eye at Target — and not elsewhere.

Related: 4 reasons store credit cards are (almost) always a bad idea