The Good, the Bad, and the Ugly on Co-branded Cards

By | May 5, 2012

Today, the average Indian man does not restrain himself when it comes to plastic money. Holding a credit card or even multiple credit cards are not quite uncommon today, as are co-branded credit cards. Co-branded credit cards offer everything the term ‘value for money’ has to offer. From great deals and discounts on all your favorite stores, customers are also given cash back offers, besides other bonanzas. Also, since these cards cater to a specific group of people and their needs, like travel, fuel and shopping, customers feel like they receive personalized deals and offers. The main objective of co-branded credit cards is to provide customers with a systematic and simple mechanism for payment, combined with the bonus of extra value on all major deals, sometimes, at no additional cost. Moreover, people can accumulate their loyalty cards to get additional gifts and offers. Since co-branded cards offer all tangible rewards at an accelerated rate, customers seem to be bitten by this trend which is catching on even in smaller towns and cities.

The reason why people have begun flocking to these cards is due to the personalized offers and gifts one receives from them, in the form of focused benefits. For instance, if you are a frequent traveler, then having a co-branded credit card that partners with any major airline company will give you value for money every time you travel. You can also gather some extra points every time you use your card, in order to avail additional gifts and benefits for your purchases. Instead of merely purchasing without any extra value, why not acquire some additional benefits for the same purchases, every time you shop? We all deserve some pampering, don’t we?

While co-branded cards may seem like all play and no work, it is important to use them with cautious restraint, as is in the case of all credit cards. You need to be wary of the discounts offered on your credit card, which can sometimes be quite a blooper, i.e., discounts on the surface but hidden charges and costs beneath them. Compare co-branded cards of various banks for one particular sector before signing up for any of them. Also, some credit cards offer the same amount of discounts irrespective of the amount of money you end up spending at a store. Stay away from greed, for you may end up paying the price for it. In order to not succumb to any of these tricky gimmicks, read all the terms and conditions before entering into any deal for a co-branded card. Ensure that the partnering firms with the bank for the co-branded card you are signing up, are stores you regularly visit and from where you can acquire additional benefits every time you shop. Keep a track of the amount you are spending from these cards, along with information on the latest offers and schemes offered by different cards. In order to enjoy the maximum benefits, it is important to use the right card at the right time.

Also, customers need to be aware that in case they have any complaints with the co-branded card, it is the bank which is responsible for handling complaints, and not the partnering companies or stores. Just like the general principles of exercising care and precaution while using credit cards, customers need to follow the same golden principles while using co-branded credit cards as well. This involves keeping your identification number carefully preserved at all times, staying within the boundaries of your credit limit, thoroughly reading your monthly credit card statement, and reporting any discrepancies to your bank immediately. Opting for a personal loan or any other kind of loan to finance such liabilities should definitely not be your option in situations where you might be cash strapped. Therefore report any fraud as it comes to your notice.

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