Just be sure to pay off the entire statement balance each month in order to avoid the typical high APR most store cards carry. In addition to its rewards, the card can help protect your purchases with its Extended Warranty and Purchase Protection perks. It can also give cardholders some added security while traveling thanks to its Travel Accident Insurance, rental car insurance, and Baggage Delay Insurance, among others. Pros: Cons:
Prime membership needed to get better rewards
That said, you can use the card to purchase gift cards for other retailers and earn 5% cashback for them, meaning cardholders can still earn rewards for non-Target purchases. The benefits include extended returns, two-day shipping, and exclusive offers. So it would make a good addition to any Target-lover’s wallet. Pros
5% cashback for Target purchasesExtended returnsTwo-day shipping
Cons
It can only be used at Target
In addition to its 5% rewards, the Wayfair Mastercard earns 3% cash back for groceries, 2% back for eligible online purchases, and 1% for everything else. Ineligible online purchases include subscriptions or memberships, schools or teaching institutions, utilities, repair services, and direct marketing, among others. The card also has a bit of versatility when it comes time to order. For every Wayfair purchase, you can choose to either earn rewards or utilize a deferred financing option where you can pay the purchase down within a specified time at no interest. Pros
5% cashback with Wayfair3% cashback for groceriesNo annual feeDiffered financing options
Cons
High APRFew other perks
It can be used anywhere Visa is accepted and earns a solid cashback rate for dining and travel purchases. And again, while there is no annual fee, you will need to be a Costco member, which costs $60 annually. Pros
Good rewards for Costco gasIt can be used outside of CostcoLow APR
Cons
Few perksCostco membership required
Pros
5% cashback for online Walmart purchasesIt can be used outside of Walmart
Cons
Only 2% cashback for in-store purchasesPotential high APRFew perks
The cards above were chosen because they stood out from the rest, either by having worth-while perks, strong rewards, lower APRs, or a combination of all of the above. They can mostly all be used outside of their respective stores too, which gives them a bit more versatility for cardholders. And keep in mind a lot of store cards have high APRs. Be sure you’re paying off your monthly statement balance in full each month to avoid interest charges. Additionally, make sure you’d use a card beyond any initial offerings to ensure long-term value over short-term rewards. However, consumers can use the card to purchase gift cards at Target which can then be used elsewhere. The gift card will count as an eligible purchase for the Target RedCard’s 5% off rate too, so you’ll still earn rewards for the purchase. Here are a few good choices:
Blue Cash Preferred from American Express: If you need a good card for gas and groceries, look no further. It does have a $95 annual fee ($0 intro annual fee for the first year), but its high rewards will help you forget about it. It earns 6% cashback at select U.S. supermarkets (on the first $6,000 spent, then 1%) and on select U.S. streaming services, plus 3% cashback at U.S. gas stations and on transit.Chase Freedom Flex: The Freedom Flex is a good choice for consumers who like to spread their shopping around. It earns 5% cashback (up to $1,500 in total combined purchases each quarter you activate) for bonus categories that change each quarter, plus static 5% and 3% categories. It has no annual fee and comes along with some pretty impressive perks.Wells Fargo Active Cash: A simple option that will earn 2% cashback for every purchase regardless of where you shop. It has no annual fee, no rewards limit, and has good Visa Signature protections.
