June 17, 2025 · 10 mins read
Santhosh Kumar
Nowadays, using credit cards for payments is simple, but they also offer users additional benefits, such as rewards, special benefits, and privileges tailored to their needs. Many people are now choosing the co-branded credit card. To put it simply, what is a co-branded credit card, and what is the difference between this special type and usual credit cards?
Issued together, a co-branded credit card involves a company like a bank and a large brand, including airlines, internet shops, and fuel companies. To encourage customers to keep shopping with them, these cards give them special rewards, including cashback, discounts, points, and other benefits. Should you buy products online a lot or enjoy travel, a card that you get from your favorite airline or retail site will help you save a lot.
Getting to know what a co-branded credit card means can help you use your finances wisely and reap benefits from your usual purchases. In the following sections, we'll explain these cards, look at their types, what makes them useful, what holds them back, and tips for choosing one. When you are loyal to a certain brand, a co-branded credit card might become your ideal financial assistant.
This type of credit card is a partnership between a credit card issuer and a company such as an airline, a retail store, a hotel, or a fuel firm. By teaming the bank's resources with the brand's reputation and popularity, the company adds benefits for customers when they shop at the brand's stores.
When it comes to managing credit cards by two brands, the credit card issuer looks after all financial duties, such as determining creditworthiness, processing applications, making monthly statements, and handling repayments. When you join the brand partner, you'll receive unique rewards, such as earning points or upgrading your membership. For instance, when you use an airline co-branded credit card, the bank manages everything linked to the card, and the airline gives you special bonuses such as free tickets, entry to their lounges, or a speedy way to collect miles.
Read More:: What is the Use of CIBIL Score?
Its main strength comes from the reward program it offers. Those who are members of a brand's loyalty scheme get more reward points, cashback, and special deals by shopping at the brand. Earnings from exchange credit cards are commonly better than what you can expect from usual credit cards. You will enjoy the perks the most when you buy the products within the partnered brand's stores or through shopping online.
Both the billing and processing of payments for a co-branded credit card are done by the issuing bank. Each month, customers get their usual statements just like with any other card. Most of the time, the bank addresses concerns about billing issues or card replacements through customer service. Typically, users can redeem their rewards on the brand's loyalty website or through its smartphone app by converting points into vouchers, miles, or additional services.
Read More:: How to Settle Credit Card Debt?
Co-branded credit cards partner with some of the best brands to offer exclusive rewards and benefits. The type of credit card you get depends on your lifestyle and spending habits. Social podcasts are commonly found in these main areas:
They are available in cooperation with major retail stores and online portals, such as Amazon and Flipkart. Consequently, consumers receive cash back, discounts, and reward points on their purchases with the partner brand. With this card, you receive a higher cashback amount on purchases made from Amazon.
If you frequently travel, it's smart to choose travel co-branded credit cards. They are provided by credit card companies, as well as airlines such as Vistara or Air India, and hotels like Taj or Club Mahindra. Some of the things they provide are free air tickets, access to airport lounges, accelerated earning of air miles, and discounts on hotels. As an example, the Club Vistara SBI Card provides access to complimentary tickets and Club Vistara points.
Read More:: How to Make a Kisan Credit Card?
They are convenient for people who typically purchase a lot of fuel. Credit cards are offered in conjunction with fuel firms such as HPCL, IOCL, and BPCL. Anyone with a credit card benefits from not paying fuel surcharges, earning points on every fuel purchase, and receiving cash back. The BPCL SBI Card is often the preferred choice in this category.
They include cinema theaters, restaurants, and different entertainment platforms. Enjoy free movie tickets, savings on food deliveries, and rewards for your lifestyle.
They are designed to offer the highest incentives to customers who frequently shop with the brand partners. These are the significant points that make games with these cards so alluring:
Read More:: Which Credit Score Do Banks Use in India?
A great feature of a co-branded credit card is that you can earn rewards from a particular brand. Buying from a partnered brand, whether it's an airline, a store, or a fuel station, earns you exclusive privileges from that company, including rewards or free offers.
On many occasions, a co-branded credit card comes with special savings and advantageous offers not found on standard cards. For example, these offers may be discounts on purchases, extra cash on booking rides, and promotions around festive occasions. The savings can grow fast for anyone who often uses the partner brand.
Many co-branded credit cards with airlines or travel companies offer complimentary access to airport lounges, expedited check-ins, and complimentary flights. Due to these benefits, the card is ideal for frequent air travelers.
Read More:: How Does Foreclosure Affect Your CIBIL Score?
When you shop using the brand's platform, you earn points more quickly, which can be up to 10 times the regular amount. You can earn rewards faster with this feature and utilize them for significant benefits.
Although co-branded credit cards have their advantages, there are also some limitations that you should be aware of. You should try to remember these points:
Most of the benefits you’ll find with a co-branded credit card are offered by the partner brand. If you stick to other brands for your shopping and travel, it may be hard to gain much from the card.
Read More:: How to Build Credit from Scratch
Unlike other credit cards, co-branded cards typically require you to use your miles or points on the brand's platform or through its loyalty program rather than offering alternative redemption options.
Some co-branded credit cards are expensive because they charge large annual fees. If you don't use the account frequently, you may not receive much benefit from the card's fee.
Offering rewards can result in customers purchasing items they do not need from the brand's website.
Read More:: How to get a 5 lakh loan without a CIBIL score
Most advertisements focus on a single brand, which may mean you overlook better offers from competitors in the market.
India offers a range of co-branded credit cards for various purposes, including shopping, travel, and fuel. Their primary purpose is to give unique benefits and rewards to customers from that brand.
Amazon Pay ICICI Credit Card – The Amazon Pay ICICI Credit Card is ideal for Amazon shoppers, offering up to 5% cashback and no annual fee.
Flipkart Axis Bank Credit Card – The Flipkart Axis Bank Credit Card is ideal for users of Flipkart and Myntra, as it offers 5% cashback on their purchases.
Club Vistara SBI Card – For frequent flyers, this card offers complimentary ticket vouchers, lounge access, and Club Vistara points.
IRCTC SBI Platinum Card– Designed to book Indian Railways tickets and gives you the chance to save and get rewards.
BPCL SBI Credit Card – Travelers can enjoy fuel savings at Bharat Petroleum outlets, along with cashback and a waiver of sales tax, by using this card.
Read More:: How to Add a Credit Card to Myntra?
You need to learn what a co-branded credit card is to choose one that suits your way of living and spending. The rewards, combined with available discounts and brand-focused offers, can be very useful for anyone who regularly purchases from that partner brand. By using a co-branded credit card, you can lower your expenses in areas such as travel, shopping, fuel, and entertainment and enjoy benefits exclusive to cardholders.
Nonetheless, I think it's as important to recognize the limitations. Usually, the benefits are exclusive to only one brand, so your card is only useful when you use its closely tied services. Fees you pay every year, a limited range of places you can redeem rewards, and the chance to spend more money are some things to notice as well.
All in all, a co-branded credit card can be helpful when you pick the right one. Always check how often you spend money, assess the benefits each card offers, and select the best one for your needs. When you use a credit card the right way, you get an enhanced buying experience, more rewards for your purchases, and unique benefits just for using that credit card. Also, you are now more knowledgeable about these cards, which makes it easier to decide if they align with your goals.
A co-branded credit card is issued by a bank in collaboration with a brand from the airline, retail, or fuel industry. The rewards and special benefits are available when you spend with that company.
A co-branded credit card offers faster reward point accumulation, additional cash back, and exclusive discounts specifically for purchases made at the partner company. The purpose is to build loyalty for that particular brand.
A co-branded credit card can be used in places that usually accept credit cards. That being said, the best incentives and perks are typically offered through the use of the partner brand's credit card.
If using or buying from a partner brand is normal for you, a co-branded credit card can offer numerous benefits. Yet, you could find that the bonuses or benefits of the card are not as valuable if you do not use the brand regularly.
Consumers get their reward from the brand's loyalty program or website. Account users can redeem points for vouchers, air miles, discounted items, or other offers offered by the airline's partners.
Download the app from PlayStore
