Co-branded cards are now a fad and helps the owner to transact at the co-branding partner. These are nothing but bank originated credit card format that are to work in relation with other entities mostly newly emerged e-commerce stores.
Here in we'll see how these can be of help to you and me
While there can be individuals similar to me, who still feel good at spending with limited money, there can be score others who still want to carry the credit card as there comes with it the ease of easy credit. Nonetheless, your whole picture will remain as good only if you serve timely payments on your spend on card as else the debt trap can be huge ( you already know the interest rate on credit card spans any way between 24-36%).
So, even if you intend to have one credit card ensure that it goes in sync with your overall spending pattern. Saying this, we mean that if most of your spends goes toward clearing utility payment and such other payments such as for grocery shopping, opt for the card or may be a co-branded one, which provides you with good enough cash back and reward points on your spends and for such payment you can use your these accumulated points at the store with which your credit card has an association.
Co-branded cards offers you additional discount, insurance, as well as access to premium lounges for you being their premiere segment customers.
Say for instance, a typical co-branded card for travel enthusiast can go a long way in providing you with free air tickets, access to lounges as well as other hefty benefits once the spending limit on such an expense has been exceeded. One even manages to get exemption from cancellation charges in case one possesses the specific card that goes well with one's spending. These thus enableyou to engage in your high end spending while at the same time you can earn on this spend of your, creating value for your hard-earned money.
Simply, these co-branded cards offer more value to their owners in comparison to just the regular credit cards.
To extend the benefit of co-branded card, they may be launched in tie-ups with White Label ATMs that are authorized. White label ATMs are set up and managed by non-banking entities.