Co-branded credit cards are issued by a financial institution like a bank along with another party. The co-party may be a retailer, travel service provider, hotel chain, or premium sports league. Such cards are sponsored by the two parties and carry beneficial features of both.
Co-branded cards are available with several offers, discounts, and incentives. Furthermore, these cards are affiliated with multiple retail merchants. Some of the common co-branded cards are offered in collaboration with e-commerce sites, fuel, and airlines.
Credit cards have evolved over the years and are no longer a status symbol. Co-branded cards include the features of a regular card along with special privileges offered by the affiliated service provider.
Here are five benefits of co-branded cards.
1. All co-branded cards are acceptable at retail outlets across the world. These are generally available in association with Visa, MasterCard, or American Express.
2. Such cards may be used as regular plastic to make all your purchases. However, you enjoy certain additional benefits and discounts on spending with the associated brand.
3. Because these cards are associated with specific brands, you may customize your card based on your lifestyle and spending habits.
4. Some co-branded cards do not levy transaction charges and may include surcharge waivers.
5. You may pay the outstanding bills with flexible payment options.
Most card issuers do not make false promises; however, being cautious before availing these is important. It is crucial you read the terms and conditions and understand the fine print to avoid misconceptions that create trouble later.
Here are five things you must be cautious about before applying for a co-branded card.
1. There may be certain minimum spending requisites within a specified period to qualify for the benefits.
2. Often discounts on airline tickets are applicable only on the base fare; you need to pay other charges, such as surcharge, taxes, and fees.
3. Most discount offers on hotel bookings have a maximum upper limit.
4. Sometimes, international benefits may be available only if the travel originates from India.
5. Free lounge access may be restricted to a certain number during a quarter.
Before you start using your co-branded card for all your purchases, it is important to research other options. For instance, travel and hotel booking portals might provide much more beneficial offers as compared to the offers available through your co-branded credit card.Moreover, the co-branded card may have blackout periods during the weekends or holiday season, such as Christmas, Diwali, and New Year.
Co-branded cards may be very beneficial because of the special discounts and offers available across different types of spending. You will be able to enjoy several opportunities to maximize your benefits. If you frequently travel with a full-facility airline or stay at a specific hotel chain, you may avail of a co-branded card with your preferred travel or hotel partner.
Apply for one today and enjoy multiple lifestyle benefits.