Credit Cards are a great way of shopping around and enjoying various activities like dining, watching movies, and travelling the world, without having to carry around any cash. Moreover, most Credit Cards Offer added benefits in the form of reward points, flyer miles, discounts and even cash back!
Doesn’t it sound like an exact win-win situation? However, have you ever wondered, that there might be a way which can help you earn these benefits in a more optimised manner? If you have, here is you answer – Co-Branded Credit Cards!
Co-branded cards, as the name suggests, are a result of the convergence of two distinct brands into one. This is primarily done to accentuate the benefits earned by the customers, while also enhancing the brands’ image. Some of the most sought-after co-branded Credit Cards in India are –JetPrivilege HDFC Bank World Credit Card, IRCTC SBI Platinum Credit Card, and First Citizen Citibank Titanium Credit Card amongst others. Going by their names, it isn’t difficult to understand that such cards indicate the coming together of a bank as well as a service provider such as Jet Airways, IRCTC, and First Citizen.
So, what does such a card mean for you? Well, if you happen to be someone who frequently books flights for domestic and international travel, then the JetPrivilege HDFC Bank World Credit Card can help you rake some incredible benefits. If on the other hand you prefer travelling by trains, then the IRCTC SBI Platinum Card might prove to be the ideal alternative for you. All you need to understand is whether or not the benefits of the cards are aligned with your shopping or spending habits. If they are, you will be in for a treat!
Now that you have a brief idea of the about co-branded cards, let us take a quick look and how you can reap incredible benefits through them.
Every time you shop or spend using your regular Credit Card, you are usually offered reward points. In the case of co-branded cards, you get additional reward points, or discounts and even cashbacks, if you use the card to avail any of the products or services offered by the affiliate brand.
For instance, if you spend using your HDFC Snapdeal Credit Card, you earn 2 points for every 150 spent. However, if you pay the same 150 on Snapdeal you earn 3X as much the money!
Of course, in order to make the most of these additional incentives, you ought to use the card as frequently as you possibly can.
A vast majority of co-branded Credit Cards usually enjoy tie-up with the global service providers VISA or Master Cards. As a result, these cards can be conveniently enjoyed while travelling abroad.
A significant aspect of this feature is that regardless of the place or country where you use the card, your bill will always be issued in Indian currency, thus saving you from the hassle of keeping track of exchange rates and converting currencies every now and then.
In the present day times, consumers enjoy easy access to information regarding the various benefits offered by a large number of Credit Cards provided in the market.
In a bid to keep you from switching to a more useful card, more often than not, your card issuer will offer you a much-desired hike in rewards and incentives. Hence, it wouldn’t be wrong to say, that this is a great time to enjoy your position as a buyer of co-branded Credit Cards.
A vast majority of co-branded cards offer some amazing perks that most bank-only cards simply cannot.
For instance, on a co-branded card with an online store, you can avail services like free shipping. Similarly, an airline-affiliate card may make you eligible for additional weight for checked-in baggage, or even one or two extra bags. It might also offer you auxiliary services such as in-flight meals, and priority boarding.
As must be evident by now, you are slated to enjoy numerous benefits with such cards at your disposal. However, the banks and affiliate companies offering these cards are benefitting as well. As a matter of fact, some experts agree to the fact that affiliate companies, enjoy an increased sale of as much as 30% simply because the customer owning the Credit Card is tempted to reap the advantages. Furthermore, such cards help enhance the affinity that customers feel towards the brand, thereby acting as a great marketing tool.
While these cards seem to be genuinely advantageous, there are some aspects that you must be aware of as a customer. One of the most important things that you must know is that co-branded cards attract higher interest rates, as compared to generic Credit Cards.
You should therefore only use them if you can maintain the requisite amount of discipline, and clear your bills in full, every month. Yet another aspect that you must be wary of is that you often get branded loyalty points or rewards. For instance, when you collect miles on your card usage, you will only be able to redeem them when you buy flight tickets or other such services.
Even with these significantly small drawbacks, co-branded cards offer much more than you could imagine with a generic Credit Card. Hence, the next time you are out and about looking for a good investment, don’t forget to look into one or more types of Credit Cards in India, which may help you make the most of your spending habits!
Also Read: 9 Best Credit Cards You Should Own in 2018
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