As lower GST rates kick in from September 22, festive shoppers must watch out for co-branded credit card offers to save more. Using cards offering reward points, cashbacks, exclusive deals along with the brand’s festive offer can enhance overall savings.
For example, Amazon Pay ICICI Credit Card is offering 5% cashback on Amazon for prime members and 3% on Amazon for non-prime members. Similarly, Flipkart Axis Bank/SBI Card is offering 7.5% cashback on Myntra, 5% cashback on Flipkart and Cleartrip, 4% cashback on preferred merchants and unlimited 1% cashback on other spends.
All ICICI Bank credit cards are offering festive bonanza of up to Rs 6,000 cashback on iPhone 17, discounts on OnePlus and Nothing phones, 10% additional discount up to Rs 4,500 on Flipkart Big Billion Days.
Reward loyal customers
Co-branded credit cards are designed to reward loyal consumers and provide maximum value-back when used on their partner platforms. Done right, these cards can add value to the individual’s festive spending without adding strain to his budget. The value of a co-branded card depends on how well the partner brand matches the card user’s lifestyle. However, these cards may restrict reward redemption only to the partnered brands and come with monthly capping, which limits the overall value potential.
“Before choosing a co-branded card, consumers should analyse their spending preferences along with card terms and conditions including monthly capping on discounts or rewards, validity periods, and exclusions,” says Rohit Chhibbar, chief business officer, Credit Cards, Paisabazaar.
Pick the right one
Given the wide options, selecting the most suitable credit card can be a challenge. A card that maps the individual’s biggest expense categories—shopping, travel, or fuel—is more likely to deliver better value. Individuals must also look at terms and conditions of the card including monthly capping on discounts or rewards, validity periods, and exclusions.
Adhil Shetty, CEO, BankBazaar, says individuals must look beyond headline discounts. “Check how rewards are earned, how easy they are to redeem, and whether the annual fee is justified by your usage,” he says.
The right co-branded card should fit the individual’s routine spends rather than push him to spend differently. Exclusive discount offers during festive sales are usually provided by merchants/platforms in collaboration with banks. Balancing festive discounts with long-term benefits ensures you pick a card that maximises value throughout the year.
While festive offers can boost short-term savings, consumers considering co-branded cards should evaluate their utility beyond the festive season. The real value lies in how useful the card remains once the festive season is over. “Pick a product that rewards you year-round, not just during festivals,” says Shetty.
Look at costs
When an individual applies for a co-branded credit card, it’s important to know the range of costs beyond the advertised perks. Common charges include joining and renewal fees, late payment fees, foreign transaction charges, and over-limit penalties.
There are also less obvious costs, such as processing or EMI conversion fees, GST on fees, redemption
limitations, and payment return or dishonour charges. Also, each new card application triggers a hard inquiry, which can cause a small, temporary dip in your credit score, typically a few points.