What’s a co-branded bank card? How does it differ from common bank cards and different particulars

Bank cards have been extraordinarily in style off late. Purchase now, pay later – abbreviated as BNPL – gave a push to the adoption fee. Regardless of the surge in UPI utilization, they’re nonetheless one of the vital most popular methods of spending, particularly for big-ticket purchases, with training, healthcare, and auto ancillary sectors seeing robust progress in digital credit score adoption. However are you aware that utilizing a co-branded bank card can maximise your return on spending? Let’s perceive every part about such bank cards intimately.

What’s a Co-branded Credit score Card?

A co-branded bank card is a kind of bank card issued by a monetary establishment (normally a financial institution) in partnership with a retail model, airline, e-commerce firm, or service supplier. These playing cards carry the branding of each the financial institution and the companion model. In line with Bhargav Errangi, founding father of POP, they’re tailor-made to reward spending with that particular model via loyalty factors, cashback, or unique perks.

  
“For example, the YES Financial institution POP-CLUB Credit score Card is co-branded between POPclub and YES Financial institution. It presents enhanced advantages when used on the POPclub app and ecosystem, similar to elevated reward charges and unique redemption choices,” he added.

Distinction Between Co-branded, Common, and Retailer Playing cards

Key Advantages of Co-branded Credit score Playing cards
    

1. Excessive Rewards with Associate Model: These playing cards usually provide larger cashback, reward factors, or miles when used with the companion model. For instance, a journey co-branded card could provide accelerated miles on flight bookings with the airline companion.
2. Unique Affords & Reductions: Cardholders get early entry to gross sales, additional reductions, or particular privileges similar to complimentary tickets, free upgrades, or buy-one-get-one presents from the model.
3. Redemption Flexibility inside Model Ecosystem: Rewards earned are usually redeemable for purchases, vouchers, or providers supplied by the companion model. Some playing cards can also enable conversion into model loyalty factors.
4. Welcome Advantages: Most co-branded playing cards include becoming a member of bonuses similar to vouchers, reward factors, or low cost coupons—price 1000’s of rupees—on first spend or activation.
5. Extra Perks: Relying on the cardboard, you may get airport lounge entry, eating reductions, EMI conversion, gasoline surcharge waivers, and extra.

Becoming a member of Charges & Expenses

Co-branded bank cards could or could not have a becoming a member of or annual payment. “Some are lifetime free, particularly when focusing on a mass-market viewers, whereas others could cost Rs 500 to Rs 1,000, usually waived on reaching a spending milestone,” Errangi mentioned.

At all times test for:

• Annual payment & waiver circumstances
• Rate of interest (APR)
• Late fee fees
• Overseas transaction payment (if relevant)

Eligibility Standards

Eligibility for co-branded bank cards usually contains:

• Age: 21 to 60 years (salaried) or as much as 65 (self-employed)
• Earnings: Minimal month-to-month earnings (normally Rs 15,000 to Rs 30,000 relying on card tier)
• Credit score Rating: Good credit score historical past (CIBIL 700+ most popular)
• Residency: Have to be a resident Indian with legitimate ID and handle proof

Some fintech or app-based playing cards could provide relaxed eligibility, particularly for first-time bank card customers or younger professionals.

Is a Co-branded Credit score Card Proper for You?

A co-branded card is good in case you incessantly store or transact with the companion model. It maximises your return on spending by aligning your way of life with reward potential. Nevertheless, in case your purchases are extra diverse otherwise you want flexibility in reward redemption, an everyday bank card is perhaps extra appropriate.

Retailer playing cards, alternatively, are solely useful in case you’re loyal to a specific retailer and do not thoughts the restricted usability. Their rewards are sometimes not as beneficiant or versatile as co-branded or common bank cards.