Co-branded credit cards are issued by financial institutions, typically banks or credit unions in collaboration with companies, organizations, or brands. In today’s time and age, these cards are getting more niche. If you want to earn exclusive rewards or
avail discounts, free shipping, and other perks, then these co-branded credit cards come in really handy.
If you want to know whether you need one or not, please read on as we present some interesting and insightful points about it.
Pros and cons of co-branded credit cards
Pros:
- Enjoy exclusive rewards, discounts, and valuable benefits with a specific brand
- Airline, hotel, or travel credit cards can assist cardmembers in attaining elite status, unlocking additional perks.
- Approval for a co-branded credit card may be somewhat easier, although it is not guaranteed.
Cons:
- Limitations on where you can earn or redeem rewards may exist with brand-specific co-branded cards.
- The temptation to overspend to earn or redeem exclusive rewards could be a concern.
- Companies have the ability to devalue rewards at any time without prior warning.
Why should you get a co-branded credit card?
Are you very particular about brands? Or are you a loyal customer of specific stores, airlines, hotel chains, or online booking platforms? If the answer is yes, opting for a co-branded credit card affiliated with your preferred brand might provide cost savings, and valuable perks, and bring you closer to your next objective—whether it’s a significant purchase or indulging in a luxurious stay at a five-star resort.
AU Small Finance Bank credit card is one such travel credit card that stands out as the most rewarding of all. Here’s what it offers:
- Flat 10% off on flight bookings
- 0 PG fee on train tickets
- 10% off on buses
- 5% off on hotels
- Exclusive railway and airport lounge access
Unlock the full advantages of your co-branded card
From selecting the ideal card for your lifestyle to extracting the maximum rewards, here’s how to maximize your next co-branded credit card:
Feel free to be selective
Thoroughly evaluate the benefits of a co-branded credit card to align it with your spending, budget, and objectives. Certain issuers provide multiple cards with varied terms and tiered benefits.
Clear your bills completely and on time
Ensure your balances are paid in full every billing cycle. Numerous co-branded credit cards carry higher APRs compared to traditional ones, and accruing interest on carried-over balances each month can diminish the rewards, benefits, and savings you aim to derive from the card. This principle is relevant to all credit card types, whether co-branded or not.
Let your credit card serve you!
Apart from interest, take into account other potential expenses. Owning a co-branded credit card might occasionally tempt you to overspend in order to maximize rewards, even if it exceeds your budget.
Overall, co-branded credit cards present an excellent opportunity to save money and gain rewards and perks, especially if you exhibit loyalty to a specific brand. However, it’s crucial to meticulously evaluate annual fees, interest rates, and other related costs associated with a co-branded card before applying. If you opt for a co-branded credit card, make it a priority to settle the balance entirely each month to steer clear of fees and interest that could diminish your savings.
