Why are co-branded credit cards in vogue?

If you prefer shopping from a particular store or dine frequently at a restaurant, why not have a specialized credit card to help you earn while you spend. Today, co-branded credit cards are the latest to get preference over other versions of the plastic money.

These co-branded credit cards serve specific purposes and are highly focused. One can avail their benefits in divergent sectors like traveling, retail, fuel recharge, telecom etc. For instance, while recharging the fuel of a vehicle, one can also earn points with the special credit card.

There are several industry giants and banking veterans providing the special credit cards in the market. These include co-branding of credit cards by the banking industry as well as the various services availed by consumers. Some of the popular co-branded credit cards are Jet Airways Citibank Platinum credit card, Indian oil Citibank credit card, ICICI bank-HPCL Gold credit card, ICICI bank-BPL mobile credit card etc. The growing popularity of these co-branded cards is being attributed to the combined benefits of the plastic money and the added value which comes with them. A co-branded credit card is like any other credit card as it offers easy and convenient mode for payment of money. The extra benefits of these cards provide added value to our purchases. There is significant value-addition in the form of rewards, discounts, special offers etc.

In addition, the most essential feature of co-branded cards is its ability to provide focused benefits. Points can be earned through the use of these cards for specific purchases of the user's choice. One can continue to shop at their preferred stores and also earn points which provide them with loyalty benefits.

And lastly, for potential users planning to opt for co-branded credit cards, there are a few traps they need to be aware of. Before applying for a special card, verify whether the benefits offered by the card pertain to gift vouchers worth a certain percentage of the net purchase of the day (preferable) or whether it offers a special gift (which can be less than the discount percentage). Therefore, careful comparison of the offers provided by the available special cards need to be considered before purchasing one for a long term benefit.