Benefits Of Co-Branded Credit Cards

By Sanesh Mathew | July 21, 2017

What are the benefits of co-branded credit cards

Wouldn’t you love to get extra loyalty benefits from your Credit Card? That’s exactly what a co-branded Credit Card gives you! Unlike plain, vanilla Credit Cards, the co-branded cards provide extra value for its users in a particular product niche (travelling, retail, dining, fuel, etc.). These values could be special discounts, offers, rewards, etc. So, whether you’re a frequent flyer or a shopaholic, there is a co-branded Credit Card for you!

Additional Reading: Top Ten Credit Cards In India

What is a co-branded Credit Card?

Co-branding is basically when two brands converge to enhance a product’s image and usefulness. When it comes to Credit Cards, co-branding is a partnership between a banking institution and a service provider such as a retail outlet, hotel chain or airline (for instance, HDFC and Jet Airways). Cards issued as a result of such partnerships are called co-branded Credit Cards (for example, JetPrivilege HDFC Bank World Card or Kotak PVR Platinum Credit Card). The card issued will have the bank’s name and the service-provider brand’s name on it.

Let us understand a co-branded Credit Card better with an example. Let’s assume that you frequently fly with Jet Airways and you hold a JetPrivilege HDFC Bank World Card. You get an edge over other travellers with benefits such as discounts on tickets, privileged lounge access and more.

So, should you get one? If you’re one among the brand-conscious lot (you fly with a particular airline only or you shop at a particular retail store only), then a co-branded Credit Card makes sense for you.

Advantages of a co-branded card

The main aim of co-branded Credit Cards was to promote more usage of cards, and to gain brand loyalty and market share. Besides, when there is a convergence of brands, it is easier to reach a wider, defined customer base.

Now, let us discuss the pros of owning a co-branded Credit Card.

Rewards and discounts

You could avail a lot of discounts and reward points with your co-branded card, provided you use it frequently. The affiliated brand gives you a host of offers, discounts, and incentives from time to time. For example, if you have the American Express MakeMyTrip Credit Card, then you get to enjoy rebates and special offers on all your travel reservations made through the MakeMyTrip website. Some cards also offer free merchandise after you spend a specific amount of money. For instance, one of the biggest attractions of a travel co-branded card is the complimentary air ticket.

How does the rewards program work? Every time you use your Credit Card, you earn reward points. After you accrue a certain amount of points, you can redeem it for goods and services. The only problem here is that it takes a while to accumulate points and you might be tempted to spend a lot of money frequently, unless it is part of your lifestyle.

International acceptance

Since most of the co-branded cards available have a tie-up with either VISA or MasterCard, they are widely accepted across the globe. Use your Credit Card anywhere in the world and the bill gets generated in Indian currency only.

Additional Reading: Waving Hello To Visa PayWave

Assistance anytime

Lost your card? Card not working? These are common problems that you can face anytime, anywhere. With co-branded cards, you no longer have to worry about these problems. They come with 24×7 assistance, so help is always within reach in case of any problems. Co-branded cards also offer flexible payment options.

A co-branded Credit Card is an attractive offering, but ensure that you only get one that fits your lifestyle and spending habits. If you don’t spend frequently, then it is wiser not to opt for a co-branded Credit Card.

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Category: Credit Cards

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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