From Swipes To Savings: Why Co-Branded Cards Make Sense

Credit card use in India has been steadily increasing, with banks competing to offer cards with more attractive rewards. One type that’s becoming increasingly popular is the co-branded credit card, a smart choice if you’re looking to maximise your everyday spending.

If chosen well and used responsibly, co-brand credit cards can help you save more than a regular credit card. The key here, however, is choosing a card that aligns with your spending habits. 

As part of Credit Score Awareness Week, BankBazaar is urging users to make better credit choices that help them save today and build a better future tomorrow. And picking the right card is an important step in that direction.

What are co-brand cards?  

A co-branded credit card is issued by a bank in partnership with a brand, be it an airline, fuel company, retailer, multiplex, or hotel chain. These cards offer brand-specific rewards in addition to standard credit card benefits. For instance, you could earn accelerated points on flight bookings with an airline card or get instant discounts at partner stores with a retail card.

While they work like any other credit card, the value they offer is often enhanced when used in the brand’s ecosystem. For instance, if you frequently shop with a particular brand, or in a specific category, like travel, a co-branded card aligned to that spend can help you maximise rewards and reduce out-of-pocket costs.

Why do they offer better value?

The USP of co-branded credit cards lies in their targeted savings. These cards typically offer higher rewards, cashback, or discounts when you spend with the partner brand. Perks can include welcome vouchers, bonus points, and annual fee waivers if you meet set spending thresholds. 

Some cards let you earn and redeem points directly through the brand’s loyalty programme, adding further value. Airline cards may include benefits like priority check-in or extra baggage, while fuel cards often come with surcharge waivers. Many co-branded cards also feature milestone rewards, lower interest rates, or reduced processing fees on partner EMIs. 

Also read : Got A Pre-Approved Credit Card Offer? Here’s What You Need To Know

Choosing the right card

Think you’ve found the right card? Pause before you apply. Make sure it matches how you spend. These quick questions can help.

• Do you frequently book flights, fill fuel, or shop online at a particular brand?
• Will you use the card’s perks, like free movie tickets, flight upgrades, or brand discounts?
• How much do you need to spend each year to unlock fee waivers or milestone rewards?
• Are the reward points easy to redeem, and can you use them with your favourite brand or store?
• Does the card limit how much you can earn in rewards or cashback each month?

More cards don’t always mean more perks

If you spend across categories like travel, shopping, or fuel, one card may not be enough. Having two or three co-branded cards can help you save more but don’t overdo it. Juggling too many cards can be hard to track and may lead to overspending. Also, your habits can change. A card that works for you today might not be useful tomorrow. Review your cards regularly to ensure they still fit your lifestyle.

Co-branded cards aren’t just about brand loyalty. If picked and used wisely, they can maximise the value of your everyday transactions, helping you save more. 

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