What is Co-branded Credit Card? Is it Worth?

A co-branded credit card is a type of credit card that is issued by a financial institution, like a bank, but is created in partnership with another company, typically a retailer, airline, hotel chain, or other businesses.

These cards typically feature the logo or branding of both the financial institution and the partnering company.

Co-branded credit cards often come with special benefits or rewards tailored to the partner company’s products or services.

For example, a co-branded airline credit card may offer bonus miles or discounts on flights with that airline, while a co-branded retail credit card may offer cashback or discounts on purchases made at that retailer.

Co-branded credit cards can be a way for companies to strengthen customer loyalty and attract new customers by offering unique perks or rewards associated with their brand.

Co-branded credit card benefits

Co-branded credit cards have some cool perks. Firstly, they offer unique rewards and benefits linked to the partnering company.

This could be cashback, points, or discounts on purchases with that brand. Secondly, using these cards might get you special treatment, like VIP events or better customer service.

Plus, they help build loyalty to both the bank and the partner brand. You could also get extra goodies, such as free upgrades or exclusive services.

By teaming up, both companies can reach more people and boost sales. Overall, co-branded credit cards make it easy to shop and earn rewards with your favorite brands.

Are co-branded credit cards worth it?

Yes, if you frequently use the services or products of the partnering company and can maximize the rewards and benefits offered by the card. Otherwise, no.

Here are some factors to consider:

  1. Rewards and Benefits: Co-branded credit cards often come with unique rewards and benefits tailored to the partnering company. Evaluate the rewards structure, such as cashback, points, or miles, and consider whether you can maximize these rewards based on your spending patterns.
  2. Fees and Interest Rates: Consider any annual fees, foreign transaction fees, or other charges associated with the card. Make sure that the value of the rewards and benefits outweighs any fees you may incur.
  3. Brand Loyalty: If you frequently shop at or use the services of the partnering company, a co-branded credit card can provide added value through exclusive discounts, perks, or enhanced rewards.
  4. Flexibility: Assess whether the rewards earned with the co-branded credit card can be easily redeemed and fit your lifestyle. Some cards may offer limited redemption options or restrictions on when and how rewards can be used.
  5. Credit Score Impact: Using a co-branded credit card responsibly can help build or improve your credit score over time. However, missed payments or carrying a high balance can have a negative impact on your credit.
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Which bank launched co-branded credit card?

Several banks have launched co-branded credit cards in partnership with various companies across different industries. Some notable examples include:

  1. Citibank: Citibank has launched co-branded credit cards with companies like Costco, American Airlines, and Hilton Hotels.
  2. Chase: Chase offers co-branded credit cards with companies such as Southwest Airlines, Marriott Bonvoy, and Amazon.
  3. American Express: American Express partners with companies like Delta Airlines, Hilton Honors, and Marriott Bonvoy for co-branded credit cards.
  4. Capital One: Capital One has co-branded credit cards in collaboration with brands like Walmart, Amazon, and Uber.
  5. Bank of America: Bank of America offers co-branded credit cards with companies such as Alaska Airlines, MLB, and Norwegian Cruise Line.

Indian bank launched co-branded credit card:

  1. State Bank of India (SBI): SBI has launched co-branded credit cards with companies like Air India, IRCTC, and SimplyCLICK.
  2. HDFC Bank: HDFC Bank offers co-branded credit cards in partnership with brands such as Regalia (with Visa or Mastercard), Diners Club, and Times Points.
  3. ICICI Bank: ICICI Bank has co-branded credit cards with partners like Jet Airways, Amazon, and Ferrari.
  4. Axis Bank: Axis Bank offers co-branded credit cards with companies such as Vistara, Flipkart, and Indian Oil.
  5. Kotak Mahindra Bank: Kotak Mahindra Bank has co-branded credit cards with partners like PVR, BookMyShow, and Royal Sundaram.

How to apply co-branded credit card?

  1. Visit the bank’s website or a third-party site like BankBazaar.
  2. Choose a card that fits your needs.
  3. Click on “Apply” and fill out the online form.
  4. Provide necessary details like personal info and income.
  5. Submit the form and note the application reference number.
  6. Wait for the bank to review your application.
  7. If eligible, you’ll be notified via email or phone.
  8. It usually takes 7-10 days for processing.
  9. You can track your application status online.

Eligibility for Co-branded Credit Card:

  • Applicant must be an Indian citizen.
  • Can be salaried or self-employed.
  • Good credit history preferred (except for first-time borrowers).
  • Minimum age: 21 years; Maximum age: 60 years.

Documents Required:

  • Identity proof: Aadhaar card, passport, etc.
  • Address proof: Voter’s ID, Aadhaar, driving licence, etc.
  • PAN card copy.
  • Two months’ salary slips or Income Tax Returns.
  • Duly signed application form.
  • One passport-size photograph.

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