Does Target do a Hard pull for credit?

Introduction

When applying for credit, one of the concerns that many people have is whether or not the company will perform a hard pull on their credit report. A hard pull can impact your credit score and stay on your report for up to two years. In this article, we will focus on Target and whether or not they perform a hard pull on credit applicants.

Does Target Do a Hard Pull for Credit Applications?

Target offers two types of credit cards: the Target RedCard Credit Card and the Target RedCard Debit Card. The Target RedCard Credit Card is a traditional credit card, while the Target RedCard Debit Card links to your existing checking account. The question is, does Target do a hard pull on credit applicants for either of these cards?

Target RedCard Credit Card:

When applying for a Target RedCard Credit Card, Target will perform a hard pull on your credit report. This hard pull can have a temporary impact on your credit score. However, if you are approved for the card, your responsible use of credit can help to improve your score in the long run.

Target RedCard Debit Card

Unlike the Target RedCard Credit Card, applying for the Target RedCard Debit Card does not involve a hard pull on your credit report. This is because the card is linked to your existing checking account and does not involve any credit extended to you. The only requirement for this card is to have an existing checking account.

Benefits of Target RedCard Credit Card

Now that we know Target performs a hard pull for the RedCard Credit Card, you may be wondering if it’s worth the inquiry on your credit report. Here are some benefits of the Target RedCard Credit Card:

1. 5% Discount: One of the main benefits of the Target RedCard Credit Card is the 5% discount on every purchase made at Target and Target.com. This discount can be a significant savings for those who shop at Target regularly.
2. Free Shipping: Cardholders also receive free standard shipping on most items purchased at Target.com. This can be a significant savings for those who shop online frequently.
3. Extended Returns: With the Target RedCard Credit Card, you also have an extended window for returns. You have an additional 30 days to return items compared to non-cardholders.
4. Exclusive Offers: Target often offers exclusive discounts and promotions for RedCard Credit Cardholders. This can provide additional savings for those who shop at Target frequently.

Benefits of Target RedCard Debit Card

While the Target RedCard Debit Card does not involve a hard pull on your credit report, it still offers some benefits to cardholders. Here are some benefits of the Target RedCard Debit Card:

1. 5% Discount: Similar to the Target RedCard Credit Card, the Target RedCard Debit Card offers a 5% discount on every purchase made at Target and Target.com.
2. Free Shipping: Cardholders receive free standard shipping on most items purchased at Target.com.
3. Extended Returns: With the Target RedCard Debit Card, you also have an extended window for returns. You have an additional 30 days to return items compared to non-cardholders.

Why Do Lenders Perform Hard Pulls?

Before we dive deeper into the specifics of Target’s credit card application process, it’s worth understanding why lenders perform hard pulls in the first place. Essentially, lenders use hard inquiries to evaluate your creditworthiness when you apply for credit. This involves accessing your credit report to see how you’ve handled credit in the past, such as how much debt you have, whether you’ve missed payments, and how much credit you’re currently using. This information helps lenders determine how risky it would be to lend to you, and can affect the interest rate, credit limit, and other terms you’re offered.

Target Credit Card Application Process

Now that we understand the basics of hard pulls, let’s take a closer look at Target’s credit card application process. When you apply for a Target credit card, you’ll be asked to provide personal information such as your name, address, Social Security number, and income. Target will then use this information to perform a credit check, which includes a hard inquiry.

If you’re approved for the Target credit card, you’ll receive a credit limit that’s based on your credit history and other factors. You’ll also be able to enjoy a number of benefits, such as 5% off Target purchases, free two-day shipping, and an extended return window.

How to Minimize the Impact of a Hard Pull?

While hard inquiries can have a temporary negative impact on your credit score, there are steps you can take to minimize the effect. One option is to limit the number of credit applications you submit in a short period of time, as multiple hard inquiries can make you appear risky to lenders. You can also consider applying for a credit card with a pre-qualification process, which allows you to see if you’re likely to be approved without undergoing a hard inquiry.

Conclusion

In conclusion, Target does perform a hard pull when you apply for their credit card, but not for their debit card or loyalty program. While this can temporarily impact your credit score, it’s a common practice among lenders and can be managed by taking steps to minimize the effect. By understanding the credit application process and how hard inquiries work, you can make informed decisions about your credit and protect your financial well-being.