Ok, there is not limit to how many you can have, there is a limit to how many you can buy and it is not just at the time of purchase. I got a very nasty letter from target about this.
First there are two different red cards.
1) is a credit card, so you have a limit, at first it is $200 and then they may have it go up some, mine is now up to $600. After three years.
2) there is a red card that is linked to your debit card, I do not have this type.
I was going to Disney and started buying cards, this was back when it was $200 red card limit. I bought $200 and went over and paid it off. Three days or so later bought $200 and went and paid it off. A week later bought $200 and paid it off, and then three days later did it again. You get the drift.
Supposedly this is illegal to do according to target and you will get a nasty letter from them. My understanding from the nasty letter is the red card I have not linked to my debit card, is a credit card, you can not purchase more than your credit limit in any month even if you pay it off and start again.
Of course, I am still doing it when I have to, and they still send me a nasty letter every time I do, but they have never done anything more about it. I try harder not to do it as much, which is a little easier now that I have a limit of $600. But I went in jan so from dec to jan I purchased $1200. I am going again in April, so I purchased, $300 in feb, and another $400 last week, so I have been over for 4 months in a row so I should be getting my nasty letter soon. I will buy at least $200 more before I go. But now I need $3000 for August when we go so I am going to be over again by $200 every month until August.
They constantly tell me to link it to my credit card, but I don't want to. They need to up my credit limit, they have the evidence that I pay my bills on time and never leave a balance so up it to let me buy as much as I want. But then again, I may go to Disney to much them.