Target red card- what a scam!

amother

Tue, Apr 30 2019, 11:32 am

So I opened a target red card on a whim, thinking it would save me money! What a scam! I don't frequently shop Target and used it maybe once. Somehow, I neglected to make the payment and was charged many late fees! After negotiating with them by phone, I managed to knock off 2 late fees plus some more so for a $28 one time purchase, which saved me maybe $1, I now have to pay $55! What a scam! Mad

amother

Fuchsia

Tue, Apr 30 2019, 11:39 am

amother [ OP ] wrote:

Ouch, it always hurts to pay money for nothing. That being said, I'm not sure I see a scam. It seems like you legitimately used the card and forgot to make payments. They charged you late fees. That's pretty much how every single credit card would handle it.

The target red card offers a 5% discount every single time you shop at target and use it and there's no annual fee. (I think)It's a pretty good deal. I'm sorry you're frustrated but this not targets fault. I've also opened new cards and forgot to make payments and was charged fees. It's definitely frustrating.

Eta: there is something to be said for if you used the card 1 single time for $28 and forgot to pay it for 6 months, that it might bot be reasonable for them to charge you a $35 late fee 6 times over a $28 purchase. However, I think in such a scenario, most cc companies would probably wave some fees and keep some as well. It seems that's what target did.

baby12x

Tue, Apr 30 2019, 11:40 am

It's not a scam. It's a credit card. If you dont pay your bill they charge you. Credit cards that offer rewards, like 5% off will only save you money if you pay it off IN FULL EVERY MONTH. If you dont have the willpower to do that then stay far away.
Please make sure to know how credit cards and borrowing money works before you take out more cards!

Ema of 5

Tue, Apr 30 2019, 11:48 am

Of course it’s not worth it if you make infrequent purchases and don’t pay your bill on time!! That doesn’t make it a scam though...A scam would be if you had to pay the fees but never saw the money back, no matter how much you purchased.

amother

Purple

Tue, Apr 30 2019, 11:48 am

Its not a scam. You get 5% off and with minimum purchase, its fast shipping. My packages come very fast.

The reason you are upset is because you had to pay more money. But, that's bec you forgot to pay on time. You have to pay late fees for every credit card!!! That's how every credit card makes money!!!

Laiya

Tue, Apr 30 2019, 12:04 pm

It might not be a scam in the sense that they all do the same thing and it's presumably legal (if it is), but it does seem extortionist to charge a repeated late fee every single month, in an amount that's greater than the amount of the actual purchase. OP, did you receive bills by mail or email?

amother

Apricot

Tue, Apr 30 2019, 12:12 pm

amother [ Silver ] wrote:

I love my red card. I made mine a debit card so I still get the 5% discount and free shipping but it debits my checking account rather than take a chance at any late fees.

I do get annoyed at the reduced benefits they offer.
I used to get free shipping with no minimum purchase.
Now it’s free shipping with a minimum $25 purchase.
They also had promotional deals where they offered gift cards.
Now these deals are in-store and store pickup only. We don’t own a car so I’m considering canceling the account.
For me the benefits are no longer worth the hassle of keeping track of another credit card.

groovy1224

Tue, Apr 30 2019, 12:13 pm

OP, I'm sorry to be harsh but if you are going to open credit cards you need to educate yourself.

You opened a card without understanding the terms so you could save 5% on a $28 purchase, knowing you could only use it at a store you barely frequent? That was not a wise decision, I'm sorry.

It was nice of them to waive any late fees at all, since it's not like you have a history with them of making timely payments but just made a one time mistake.

amother

Oak

Tue, Apr 30 2019, 12:13 pm

Laiya wrote:

A late fee is generally a set fee, usually $25 or $35 depending on the card. It's not prorated depending on your balance. It's very standard across all credit cards to charge it monthly.

amother

Fuchsia

Tue, Apr 30 2019, 12:27 pm

Laiya wrote:

It seems from op's story that she is ultimately paying $55 after making a $28 purchase. That sounds like 1 late fee. All the other late fees were waived. This is reasonable and standard.

Laiya

Tue, Apr 30 2019, 12:33 pm

amother [ Fuchsia ] wrote:

It seems from op's story that she is ultimately paying $55 after making a $28 purchase. That sounds like 1 late fee. All the other late fees were waived. This is reasonable and standard.

I understood that she was paying $55 in late fees

Laiya

Tue, Apr 30 2019, 12:36 pm

amother [ Oak ] wrote:

A late fee is generally a set fee, usually $25 or $35 depending on the card. It's not prorated depending on your balance. It's very standard across all credit cards to charge it monthly.

When did I say it's prorated? The fact they all do this doesn't mean that there isn't something extortionistic about it.

amother

Tue, Apr 30 2019, 12:36 pm

Yes, it was stupid and silly and naive of me to open this card and Amazon prime card. I don't shop regularly enough to make it worth it and it seems enticing at first but in the end, I just incurred late fees, which I can't afford. I managed with each place to knock off some of the late fees but at end of day, it's still way more than I purchased and the small savings was completely not worth it. So in my eyes, the whole thing is a scam.

Laiya

Tue, Apr 30 2019, 12:39 pm

amother [ OP ] wrote:

The bigger problem with the cards is the overly-aggressive marketing tactics to vulnerable potential customers

amother

Black

Tue, Apr 30 2019, 12:40 pm

OP, why is it a scam if YOU'RE NOT PAYING UP ON TIME??? You're saying late "fees", so it means it's not a one time happening. Do you think credit cards is free money??? Do you just open cards on a whim without educating yourself & knowing what they entail??? Just like if you don't pay your utilities bill you get charged a monthly late fee, same with a credit card. Your irresistibly is not the credit card company's fault & does not make it a scam.