Co-branded credit cards have become an emerging trend of the season and many observers believe that they are here to stay. While many people may have their apprehensions about these cards and dismiss them merely as instruments used by people to flaunt their status, these cards come with a powerhouse of value-added benefits and services. Card holders get access to a wide range of benefits while shopping with these cards, not to mention the five-star treatment on special occasions. While people have begun to see the value associated with these cards, takers of these cards and its market is increasing in size by the day. These cards are now offered by many top banks in the country, not to mention the wide array of services they offer, ranging from entertainment, retail, travel, manufacturing, telecom, fuel, and various other sectors adding up by the day.
Observers believe that the major reason behind this trend can be attributed to a rise in consumerism and the independence and flexibility enjoyed by a consumer today. Companies are struggling to attract the attention of their clientele by offering co-branded cards, which are also viewed as a tool for promotion and marketing in the long run, enhancing the fields of customer loyalty and brand experience. Also, the features of a co-branded card are made in accordance to the needs of both the partners involved in the liaison, deeming it profitable for both the customer and the firm. Consumers are rewarded with points every time they shop at the partner store, enabling them to redeem these points against redemption catalogues that are customized to add value and attract a large database of customers. Moreover these catalogues are revised periodically, on a regular basis, to include special offers and discounts for customers provided by the respective brands or companies.
These days, more and more organizations are showing interest for a tie-up with banks in order to empower customers and offer them additional value to their shopping experience. Private-label cards are also being offered that cater to a specific group of society like women, children, or businessmen, to add exclusivity to their experience. Another emerging trend that is fast gaining popularity may be tie-ups with more than two partners, thereby leading to the concept of multiple reward co-branded cards. Customers can use one card to shop at many places altogether, making it an enjoyable and convenient alternative. While these cards may seem to offer unending benefits and advantages, it all comes down to how well and how often you use these cards, apart from the special discounts and offers that are provided over them.
Remember to use these cards wisely and not get tempted and over-spend with these cards merely by the lure of offers. Make sure that you do not carry forward your monthly balances and try clearing them on a month on month basis. If you have initially signed up for credit card that offers you an interest rate as low as 4% p.a., for example, carry forward balances may carry interest rates as high as 14% percent. This will be mentioned in the disclaimer or in the terms and conditions as and when you sign up for the card. Another mistake what customers tend to commit is that, in order to pay for those piled up bills, they avail a loan. Now credit card loans carry exorbitant rates of interest which will consume away a major portion of your finances. DO NOT sign up for a debt to pay for another. You will land yourself into a financial mess. Make sure you enjoy hassle free services of this plastic cash by making prudent decisions.