TikToker Money Matters (@banknoteboogie) is documenting her journey to become debt-free, sharing advice and tips with her followers along the way. In a recently uploaded video, she warned viewers against the Target RedCard, a credit card from Target that advertises perks such as 5% off every day at Target and Target.com. Yet, Money Matters cautions against the eye-catching perks and claims that the Target RedCard ruined her credit.
“When I first got this card, the max was like $500. I was shopping at Target frequently, and I always paid my card off almost 100% of the time,” she explained. However, on one occasion, she shared hadn’t paid the card off by the statement date but did pay off the card in full by the balance due date.
For most credit cards, there are two important dates cardholders must pay attention to: the payment due date and the closing date. According to Chase, “The closing date is the last day in a billing cycle, and the due date is when a payment is due on your credit card, usually about one month after the closing date.”
Money Matters shared, “I hadn’t paid the card off by the statement date, but I did pay the card off by the balance due date. So what had happened is I paid that card in full, and then I had all of my notifications and emails and things like that off for this particular card.”
She then went to apply for a mortgage. She said that during the application process, “when my credit report was pulled up, the bank brought up to me that on my credit history, there was something on there that was 90 days late or no payment. And when I further investigated it, it was that Target RedCard.”
Through her investigation, Money Matters said she learned she still had a balance on the credit card, despite thinking she had paid it off. “It was $3.67 that was on my Target RedCard that hadn’t been paid, and I just was absolutely not aware of that. It’s such a small amount, and it has such a big impact on my credit report,” she shared.
Unbeknownst to Money Matters, interest had been acquired on the card between the statement date and the due date. When she paid the full amount, she said it didn’t account for the interest. According to Chase, interest will accrue on a daily basis, between the time your next statement is issued and the due date, which means that you’ll have an even larger balance due, even if you haven’t used your card during that month.
The viral video has 173,000 views and hundreds of comments. The video sparked much discourse. Some viewers feel the responsibility is on Money Matters for not knowing the standard functions of a credit card.
@banknoteboogie Target Red Card, did me dirty. Also, you should have notifications on for you Credit Cards 😬 #creditcarddebt #debtfreejourney #creditcards ♬ original sound – MoneyMatters
“That’s honestly on you, you ruined your credit, not Target and this is very common credit card terms,” one commented. Another added, “You should have had auto pay on at the very least. This is a rookie move. Totally NOT Target’s fault.”
While others recommended Target’s Debit Card. “I have the Target Red Debit Card. I save 5%, and it comes out of my household checking,” one said.
Some viewers even suggested calling the company. “You can ask to speak to a manager. We usually waive it for you and clear the credit history. Every bank might have different policies tho,” another recommended.
The Daily Dot reached out to Money Matters via TikTok comment and Target via email.
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