5 advantages of co-branded cards
Co-branded credit cards are the product of a mutual partnership between a particular merchant and a credit card issuer. Together, they create a credit card that bears the merchant’s logo and provide merchant-specific benefits to brand-loyal consumers. As a result, you gain rewards and discounts from the brands you are most loyal to.
They are useful and cost-effective once you understand how they work. However, the rewards offered by a co-branded credit card are tailored specifically to the services offered by the affiliated merchant.
Advantages of Co-Branded Credit cards
1. Accepted worldwide
Co-branded cards are international cards. They are accepted worldwide and can be used at any merchant outlet across the globe while the bill is generated in INR. Their worldwide acceptability is due to the tie-up they have with VISA or Master Card.
2. Rewards Customer Loyalty
It is a unique way for the card issuer as well as the affiliate merchant to reward their loyal customers. The cards while being a reward will further deepen the frequency of engagement, thus creating a win for all.
3. Freebies for the customers
They offer free merchandise to customers for spends exceeding specific amounts or redemption options along with a frequent flyer program or a frequent buyer program.
4. Customized to lifestyle requirements
Since co-branded credit cards are attached to a particular brand, customers can avail cards customized to their spend category and lifestyle requirements.
5. Fee waivers
Most co-branded credit cards do not have transaction fees and also offer surcharge waivers for customers.
You receive the highest rewards, from the purchases you make directly with the affiliated merchant. Therefore, in order to fully reap the rewards available, opt for a card from a brand that you know you will make regular transactions with e.g. IndianOil Citi Credit Card that offers fuel benefits.
It might be tempting to get credit cards affiliated with all of your favourite stores, use each on a sporadic basis when you shop with the respective retailers and then stockpile the rewards you earn for future benefits. Spreading yourself too thin in this manner is not beneficial. Get at the most two different co-branded credit cards. This will enable you to maximize the benefits you receive from each without overburdening yourself.
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