Does the Target Red Card Help You Build Credit?

Find out if the Target Red Card affects your credit score and learn better alternatives for building credit.

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No, the Target Red Card does not build credit as it is a store card, not a credit card. This means it won't impact your credit score positively. If you're looking to build credit, consider getting a secured credit card or a credit-builder loan from your bank.

FAQs & Answers

  1. Can the Target Red Card help improve my credit score? No, the Target Red Card does not help improve your credit score because it is a store card and not a traditional credit card.
  2. What is the difference between a store card and a credit card? A store card, like the Target Red Card, is used exclusively at a specific retailer and typically doesn't report to credit bureaus, while a credit card can be used anywhere and often helps build credit history.
  3. What are some good options for building credit? To build credit, consider obtaining a secured credit card, which requires a cash deposit as collateral, or a credit-builder loan offered by banks or credit unions.
  4. Are there any benefits to using the Target Red Card? Yes, while it does not build credit, the Target Red Card offers benefits like discounts on purchases and special deals for cardholders.