I am being offered a co-branded card by a foreign bank. What are the benefits of a co-branded card over a normal one?
Subhasis Bose, Mumbai
Co-branded cards are not a new phenomenon and have been in vogue for several years. Co-branded cards are partnerships between the card issuer and a service provider like a retail outlet, airline or fuel vending company. The co-brand typically earns you a higher loyalty point and benefits when using such cards at the co-brand outlets. So, if you use a co-branded airline card, you are likely to earn more flying reward points. You will also earn more points when you buy airline tickets using this card.
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You should consider such a card only if you frequently use credit cards and spend on the co-branded services. A co-branded airline card is of little value to you if you are not frequent air travellers. Do ask yourself if you need a card than take one just because it is being offered to you, as a new card may waive off the joining fee, but charge you the same in the second year.
