REDcardSM Credit Card Agreement 
for your Target Credit Card

This Agreement explains the terms that you agree to follow for your 
Target Credit Card Account (“Account”). The card carrier we send with 
your credit card and the Account Opening Terms are part of this Agree-
ment. In this Agreement “we,” “us,” and “our” mean Target National 
Bank. “You” and “your” mean everyone who is liable for payment on 
this Account. “Card” refers to your Target Credit Card.
1.  USE OF YOUR ACCOUNT — When you apply for an Account, you 
promise to be bound by the terms of this Agreement. You promise 
to pay us for all credit extended under this Agreement and all other 
amounts you owe to us according to the terms of this Agreement. 
If  the  Account  is  a  joint  Account,  each  of  you  is  bound  by  this 
Agreement and each of you jointly and individually promises to pay 
us, and may be held liable for, all amounts owed to us on your 
Account. You also promise to pay us for charges incurred by anyone 
you allow to use your Account. If you give your Card to someone 
and authorize their use of the Card, you must regain possession to 
terminate their authorized use. This Account may be used only for 
personal, family or household purposes. You agree that you will not 
use or allow use of your Card or Account for any illegal transaction 
or purpose. 

     You may use your Card to make purchases of goods and services 
(“Purchase(s)”). A Target Credit Card can be used to make Pur-
chases at Target, including Target Stores and Target.com. 

2.  CREDIT LIMIT  —  You  agree  that  we  may  establish  a  credit  limit 
for your Account (“Credit Limit”). You agree that we may change 
a  Credit  Limit  at  any  time  for  any  reason  not  prohibited  by  law, 
including, but not limited to, changes in your credit capacity, your 
pattern of payments to us, or your purchasing behavior. We may 
also change a Credit Limit based on any information provided to us 
by a consumer reporting agency, including your risk score at the 
consumer reporting agency or information about credit accounts 
you have with other companies. We may, but are not required to, 
approve transactions that exceed your Credit Limit without liability 
to you and without obligating us to do so in the future. You agree 
to prevent your Account balance from exceeding the Credit Limit.
3.  SPECIAL  PROMOTIONS  —  Occasionally,  we  may  provide  you  the 
opportunity to use your Account in connection with special promo-
tions. These promotions may be subject to terms and conditions in 
addition to or different from those provided in this Agreement, which 
will be described in our offer. Unless otherwise stated, however, all 
terms of this Agreement shall apply to any promotion.

4.  PAYMENTS  —  We  will  send  you  a  billing  statement  each  month 
that your Account has a balance. Your billing statement will show 
the amount you owe us, which is called the New Balance, and the 
smallest amount you have agreed to pay us for that billing period, 
which is called the Minimum Payment Due. If any portion of the 

2010-TC (8/10)

New Balance is delinquent, the statement will show the Amount 
Past Due. The statement will also tell you the Payment Due Date.
     The Minimum Payment Due each month will equal the greater of 
a) $25.00; or b) the sum of the following: 1% of your New Bal-
ance (rounded to the next higher whole dollar amount), any Interest 
Charges, any Returned Payment Fees, and any Late Payment Fees. 
We may round your Minimum Payment Due to the next higher whole 
dollar amount. If there is an Amount Past Due, we will also add that 
amount and include it in your Minimum Payment Due. If your New 
Balance is less than $25.00, the Minimum Payment Due will be the 
entire New Balance. 

     You agree to pay us in United States dollars. If you pay by check, 
your check must be drawn on a depository institution located in the 
United States. If you do not pay the New Balance in full, you agree to 
pay by your Payment Due Date at least the Minimum Payment Due. 
You may, at any time, pay the total amount owing on your Account. 
Payments are posted to your Account in a timely manner as required 
by law.  However, we may delay restoring your available Credit Limit 
in the amount of the payment to make sure we receive the funds.
     At our option, we may obtain payment for any check or other in-
strument that you send to us by initiating an electronic (including 
Automated Clearing House) transfer from your depository institution  
account in the amount of your check or instrument. Your check or 
instrument will not be returned to you by us or by your depository in-
stitution. Your depository institution account may be debited as early 
as the same day we receive your payment. If we cannot process 
the electronic transfer or if the electronic transfer is returned to us, 
we may present the original check or other instrument, a substitute 
check, draft or similar instrument to obtain payment.

5.  UNAUTHORIZED USE — If you notice the loss or theft of your Card 

or a possible unauthorized use of your Card, you should write to us 
immediately at: 
 Target National Bank 
c/o Target Credit Services 
P.O. Box 1581 
Minneapolis, MN 55440-1581
 Or call us at: 
1-800-659-2396 for Target Credit Cards
 If you notify us by telephone, you agree to confirm your notification 
in writing. You are not liable for unauthorized use of the Account. 
You agree to assist us in determining the facts relating to any theft 
or possible unauthorized use of your Account and to comply with 
the procedures we may require for our investigation. All Cards are 
issued by us to you and you must return or destroy your Card if we 
request you to do so. 

6.  CREDIT AUTHORIZATIONS — Some transactions will require our prior 
authorization and you may be asked to provide identification. If our 
authorization system is not working, we may not be able to authorize 
a transaction. We will not be liable to you if any of these events 
happen or for any failure to authorize a transaction. We are also not 
responsible for the refusal of anyone to accept your Card.

7. INTEREST CHARGES —   

•	 		ANNUAL	PERCENTAGE	RATE	—	Your	Annual	Percentage	Rate	
and corresponding Daily Periodic Rate may vary with changes 
in the Prime Rate. The card carrier sent with your Card tells you 
the Annual Percentage Rate and Daily Periodic Rate applicable 
to your Account and is a part of this Agreement. 
 The Annual Percentage Rate (“APR”) and corresponding Daily 
Periodic Rate (“DPR”) will be determined by adding a margin 
to the Prime Rate. The “Prime Rate” means the highest U.S. 
Prime Rate published in the “Money Rates” section of The Wall 
Street Journal. For each billing period we look at the Prime 
Rate on the last business day of the previous calendar month. 
Any change in the APR and corresponding DPR will take effect 
on the first day of the billing period. Your rates may increase 
when the Prime Rate increases. If the APR and corresponding 
DPR increase, the Minimum Payment Due and the amount of 
Interest Charges on your Account may also increase.

•	 	PURCHASES	—	The	APR	for	Purchases	is	based	on	your	cred-
itworthiness and is determined by adding to the Prime Rate a 
margin of either: 10.00%, 14.00% or 19.65%. Please see the 
Pricing Information for the APRs and corresponding DPRs that 
currently apply to billing periods ending this month.

•	 	BALANCE	 COMPUTATION	 AND	 PAYING	 INTEREST	 CHARGES	
—  We  calculate  a  Daily  Balance  for  your  Account.  We  may 
maintain  separate  balances  for  your  Purchases  and  special 
promotional Purchase balances (each, a “Balance Type”) and 
calculate  a  Daily  Balance  for  each.  To  determine  the  Daily 
Balance for a Balance Type, each day we take the beginning 
balance for the Balance Type, add any new charges included 
in that Balance Type, and subtract any payments and credits 
applied to that Balance Type. We then multiply the resulting 
balance by the applicable Daily Periodic Rate. The resulting 
daily Interest Charge is included in the beginning balance of 
that Balance Type for the next day. Purchases are included in 
the Daily Balance as of the later of the transaction date or the 
first day of the billing period in which the Purchase is posted to 
the Account.
 We figure the Interest Charge on your Account for each Balance 
Type by multiplying your Daily Balance of each Balance Type 
by the applicable Daily Periodic rate for each day in the billing 
cycle. At the end of the billing period, we will add up the daily 
Interest Charges on all Balance Types for each day in the billing 
period to get the total Interest Charge for the billing period. 
  Interest Charges begin to accrue on Purchases as of the day 
the Purchase is included in the Daily Balance. However, if you 
paid the New Balance that was shown on your previous billing 
statement by the Payment Due Date on that statement, then 
(1) we will not impose Interest Charges on Purchases during 
your current billing period if you pay the New Balance shown 
on your current billing statement by that Payment Due Date 
on that statement, and (2) we will credit any payment (to the 

 
 
 
	
 
 
	
	
 
 
 
 
extent the payment is applied toward Purchases) as of the first 
day in your current billing period if you make a payment by the 
Payment Due Date that is less than the current billing period’s 
New Balance.
 If a New Balance was shown on your previous billing statement 
and you did not pay the New Balance by the Payment Due Date 
on that statement, then we will not impose Interest Charges on 
any Purchases during the current billing period if you pay the 
New Balance shown on your current billing statement by the 
Payment Due Date on that statement.
 Please note that if your Account has a promotional balance, 
this may impact how we are required to apply your payments 
and whether you can take advantage of these terms regarding 
Interest Charges on Purchases.
		MINIMUM	CHARGE	FOR	BILLING	PERIOD	—	For	any	billing	pe-
riod in which an Interest Charge is imposed on your Account, 
there is a minimum interest charge of $1.00.

8.  FEES — The following fees may be assessed on your Account.

•	 	LATE	PAYMENT	FEE	—	You	will	pay	a	Late	Payment	Fee	of	
$25.00 when any amount due remains unpaid after your Pay-
ment Due Date.  Any subsequent Late Payment Fees will be 
$35.00 until you make your required Minimum Payment Due 
by the Payment Due Date for six consecutive billing periods.  In 
any event, the Late Payment Fee will not be greater than your 
Minimum Payment Due for the billing period for which your 
payment was late.

•	 	RETURNED	PAYMENT	FEE	—	You	will	pay	$25.00	each	time	
any check or other payment order (including an electronic 
payment) is not honored by a depository institution. In any 
event, the Returned Payment Fee will not be greater than the 
Minimum Payment Due that was due immediately prior to the 
date on which the payment was returned to us.

•	 	PHONE	PAYMENT	FEE	—	Each	time	you	request	over	the	
phone through a customer service representative to make 
a payment to your Account we may charge a fee for such 
service. If a fee will be charged, the amount of the fee will 
be disclosed to you before you authorize the Phone Payment 
transaction.

•	 	EXPEDITED	DELIVERY	FEE	—	At	your	request,	we	will	expedite	
the delivery of an additional or replacement Card for your Ac-
count. You will reimburse us for delivery and other charges 
imposed on us by third parties for this expedited service.

•	 	DOCUMENTATION	REPRODUCTION	FEE	—	You	may	be	charged	
$2.00 for each duplicate Account document we reproduce for 
you at your request. We will not charge you for duplicate docu-
ments we reproduce for you in connection with a billing error 
notice or if our investigation indicates a billing error occurred. 
9.    ACCORD AND SATISFACTION — We may accept letters, checks or 
other types of payments showing “payment in full” or using other 
language to indicate satisfaction of your debt (“Disputed Amounts”) 

without waiving any of our rights to receive full payment under the 
terms of this Agreement. You agree to send any Disputed Amounts 
to the address for billing inquiries shown on your billing statement.
10.  CONSUMER  REPORT  USE  AND  FURNISHING  INFORMATION  —  We 
may check information about you or your credit history with con-
sumer reporting agencies (including credit bureaus) or others. We 
may also report information about you, your Account, and our ex-
periences with you to consumer reporting agencies, to other com-
panies that are affiliated with us or to others as allowed by law and 
our Privacy Policy. If you do not fulfill the terms of this Agreement, 
we may submit a negative report reflecting on your credit record to 
one or more consumer reporting agencies. If you believe we have 
reported inaccurate information about your Account to a consumer 
reporting agency, you should notify us by sending your Account 
number and a description of the information you believe to be inac-
curate, along with any documentation supporting the inaccuracy, 
such  as  your  credit  report,  to  Target  National  Bank,  c/o  Target 
Credit Services, P.O. Box 673, Minneapolis, MN 55440-0673. 
11.  DEFAULT/TERMINATION  OF  CREDIT  PRIVILEGES  —  Subject  to 
applicable law, you will be in default under this Agreement if you 
violate any term of this Agreement, fail to make the Minimum 
Payment Due by the Payment Due Date, or become the subject 
of bankruptcy or insolvency proceedings. Upon default or death, 
subject  to  applicable  law,  we  may,  in  our  sole  discretion:  (a) 
reduce your Credit Limit; (b) terminate the Account, at which time 
the terms of this Agreement will continue until we have been paid 
in full; (c) require immediate payment of the total balance on your 
Account including all related fees and charges described in this 
Agreement; (d) bring a legal action against you to collect money 
owed to us; (e) terminate any special promotional credit terms; or 
(f) take any other action permitted by applicable law. If we refer 
your Account to an attorney for collection, you must pay to us all 
costs and expenses of collection, including attorneys’ fees, to the 
extent	not	prohibited	by	law.	Even	if	you	are	not	in	default,	we	
reserve the right to terminate your privileges to obtain credit on 
the Account at any time. Upon any termination of this Agreement 
by you or us, you will continue to be obligated to pay all amounts 
owing under this Agreement, and to otherwise perform the terms 
and conditions of this Agreement.

12.  COMMUNICATIONS WITH YOU — We or our agents may call by tele-
phone regarding your Account. You agree that we may place such 
calls using an automatic dialing/announcing device. You agree that 
we may make such calls to a mobile telephone or other similar 
device. You agree that we may, for training purposes or to evaluate 
the quality of our service, listen to and record phone conversations 
you have with us.

13.  WHAT LAW APPLIES — This Agreement will be governed by federal 
law and to the extent state law applies, by the law of South Dakota. 
If there is any conflict between any of the terms and conditions of 
this Agreement and applicable federal or state law, this Agreement 
will be considered changed to the extent necessary to comply with 
the law.

14.  CHANGE OF PERSONAL INFORMATION — You agree to tell us right 
away of any change in your name, address or telephone numbers. 
15.  ASSIGNMENT OF ACCOUNT — We may sell, assign or transfer your 
Account or any receivables created under your Account without 
notice to you. You may not sell, assign or transfer your Account 
without first obtaining our written consent.

16.  NO WAIVER — We may waive or delay enforcing any of our rights 

under this Agreement without losing them.

17.  CHANGES TO THIS AGREEMENT  —  We  have  the  right  to  change 
this Agreement (including the right to add additional terms) and 
to apply those changes to any existing balance on the Account 
as permitted by law. We will provide you with notice of any such 
changes as required by applicable law.

NOTICE	TO	WISCONSIN	RESIDENTS	—	If	you	do	not	pay	on	time,	we	
can declare the entire New Balance due and payable after we have 
given you proper written notice and you have failed to cure the default 
within fifteen (15) days notice; however, a right to cure does not exist if 
two defaults have been cured within the preceding twelve (12) months.

YOUR BILLING RIGHTS 
(KEEP THIS DOCUMENT FOR FUTURE USE)

This notice contains important information about your rights and our 
responsibilities under the Fair Credit Billing Act.

What To Do If You Find A Mistake On Your Statement
If you think there is an error on your statement, write to us at:
Target National Bank 
c/o Target Credit Services 
P.O. Box 1581 
Minneapolis, MN 55440-1581
In your letter, give us the following information:
•	Account information: Your name and account number.
•	Dollar amount: The dollar amount of the suspected error.
•	 Description of problem: If you think there is an error on your bill, de-
scribe what you believe is wrong and why you believe it is a mistake.

You must contact us:
•	Within	60	days	after	the	error	appeared	on	your	statement.
•		At	least	3	business	days	before	an	automated	payment	is	scheduled,	

if you want to stop payment on the amount you think is wrong.

You must notify us of any potential errors in writing. You may call us, 
but if you do we are not required to investigate any potential errors and 
you may have to pay the amount in question.
What Will Happen After We Receive Your Letter
When we receive your letter, we must do two things:

 
 
 
 
	
	
	
	
	
	
	
 
1.  Within 30 days of receiving your letter, we must tell you that we 
received your letter. We will also tell you if we have already cor-
rected the error.

2.  Within 90 days of receiving your letter, we must either correct the 

error or explain to you why we believe the bill is correct.

While we investigate whether or not there has been an error:
•		We	cannot	try	to	collect	the	amount	in	question,	or	report	you	as	

delinquent on that amount.

•		The	charge	in	question	may	remain	on	your	statement,	and	we	may	

continue to charge you interest on that amount.

•		While	you	do	not	have	to	pay	the	amount	in	question,	you	are	re-

sponsible for the remainder of your balance.

•	We	can	apply	any	unpaid	amount	against	your	credit	limit.

After we finish our investigation, one of two things will happen:
•	 If we made a mistake: You will not have to pay the amount in ques-

tion or any interest or other fees related to that amount.

•	 If we do not believe there was a mistake: You will have to pay the 
amount in question, along with applicable interest and fees. We will 
send you a statement of the amount you owe and the date payment 
is due. We may then report you as delinquent if you do not pay the 
amount we think you owe.

If you receive our explanation but still believe your bill is wrong, you 
must write to us within 10 days telling us that you still refuse to pay. 
If you do so, we cannot report you as delinquent without also report-
ing that you are questioning your bill. We must tell you the name of 
anyone to whom we reported you as delinquent, and we must let those 
organizations know when the matter has been settled between us.
If we do not follow all of the rules above, you do not have to pay the 
first $50 of the amount you question even if your bill is correct.
Your Rights if You Are Dissatisfied With Your Credit Card Pur-
chases
If you are dissatisfied with the goods or services that you have pur-
chased with your credit card, and you have tried in good faith to cor-
rect the problem with the merchant, you may have the right not to pay 
the remaining amount due on the purchase.
To use this right, all of the following must be true: 
1. You must have used your credit card for the purchase.  
2. You must not yet have fully paid for the purchase.
If all of the criteria above are met and you are still dissatisfied with the 
purchase, contact us in writing at:
Target National Bank 
c/o Target Credit Services 
P.O. Box 1581 
Minneapolis, MN 55440-1581
While we investigate, the same rules apply to the disputed amount as 
discussed above. After we finish our investigation, we will tell you our 
decision. At that point, if we think you owe an amount and you do not 
pay, we may report you as delinquent.

Pricing Information

Annual Percentage 
Rate (APR)

Your Annual Percentage Rates and corresponding Daily Periodic Rates may vary with changes in the Prime Rate. 

The Annual Percentage Rate (“APR”) and corresponding Daily Periodic Rate (“DPR”) will be determined by adding a margin to the Prime Rate. The 
“Prime Rate” means the highest U.S. Prime Rate published in the “Money Rates” section of The Wall Street Journal. For each billing period we look at 
the Prime Rate on the last business day of the previous calendar month.  Any change in the APR and corresponding DPR will take effect on the first 
day of the billing period.  Your rates may increase when the Prime Rate increases. If the APR and corresponding DPR increase, the Minimum Payment 
Due and the amount of Interest Charges on your Account may also increase.

The APR for Purchases may vary and is based on your creditworthiness and is determined by adding to the Prime Rate a margin of either:

i) 10.00%. For billing periods ending this month, the Purchase APR is 13.25% (corresponding to a DPR of 0.03630%),

ii) 14.00%. For billing periods ending this month, the Purchase APR is 17.25% (corresponding to a DPR of 0.04726%), or

iii) 19.65%. For billing periods ending this month, the Purchase APR is 22.90% (corresponding to a DPR of 0.06273%). 

Your due date is at least 25 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your entire balance by 
the due date each month.

Annual Fee

None

Penalty Fees
	 •	 Late	Payment

Up to $35

	 •	 Returned	Payment

Up to $25

How We Will Calculate Your Balance: We use a method called “daily balance.” We calculate a Daily Balance for your Account. We maintain separate balances for your 
Purchase and special promotional Purchase balances (each, a “Balance Type”) and calculate a Daily Balance for each. To determine the Daily Balance for a Balance Type, 
each day we take the beginning balance for the Balance Type, add any new charges included in that Balance Type, and subtract any payments and credits applied to 
that Balance Type. We then multiply the resulting balance by the applicable Daily Periodic Rate. The resulting daily Interest Charge is included in the beginning balance 
of that Balance Type for the next day. Purchases are included in the Daily Balance as of the later of the transaction date or the first day of the billing period in which the 
Purchase is posted to the Account.