Co-branded Credit Cards: Benefits, Features, and How They Work

What’s a co-branded credit card?

A co-branded credit card is a partnership between a bank and a brand, offering exclusive perks. For instance, an airline card may give extra reward points on flight bookings, while retail giants like Amazon and Flipkart offer discounts, cashback, and bonus points on shopping. These cards work like regular credit cards but come with brand-specific benefits. Unlike regular credit cards, which don’t reward specific brand purchases, a well-chosen co-branded card can offer greater value based on where you spend the most.

Co-branded cards – What makes them different?

Many also offer welcome perks like free vouchers or bonus points. You earn higher rewards on select spends like travel, fuel, or shopping. Some cards waive annual fees if you meet a spending limit while others provide early access to sales and exclusive brand offers.

What benefits do they offer?

Co-branded credit cards offer extra rewards, cashback, or discounts with partner brands. Many come with joining perks like free vouchers, bonus points, and annual fee waivers on meeting spending limits. You also
earn higher rewards on select expenses like travel, fuel, or shopping. These cards often provide lower EMI interest rates and let you redeem points at partner stores for great value.

Choosing the right card

The market is teeming with diverse co-branded credit card options, each offering perks tied to a specific brand. Be it for travel bookings, fuel, hotels, grocery, dining out, or entertainment, choosing the right card depends on where you spend the most. For instance, frequent flyers may benefit from an airline card, while those commuting long distances regularly might find more value in a fuel card.

What to consider when using co-branded credit cards

People, generally, are loyal to multiple brands and not limited to a single spending category. Some might prefer a particular airline, shop regularly at a specific online store, and have a favourite hotel they stay in while travelling. In such cases, having more than one co-branded card can be useful, but too many can be hard to manage. While they offer tempting perks to encourage spending, they should be used wisely. Moreover, as spending habits evolve, it’s important to reassess choices—what works today may not tomorrow.