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  1. Want to get rid of hefty bills and surcharges? Time to go for co-branded credit cards

Want to get rid of hefty bills and surcharges? Time to go for co-branded credit cards

Would you like to have a dinner in a five-star restaurant where you are given discounts even without asking for them? Or would you like to go for a trip which could be absolutely free for you? Yes, credit card companies are making it possible for decades.

By: | Published: December 7, 2016 1:45 PM
During the cash-crunch phase, particularly after the Modi government's announcement of demonatisation of high-denomination notes, these specially-designed credit cards can provide you all these benefits at a very low cost. (Reuters) During the cash-crunch phase, particularly after the Modi government’s announcement of demonatisation of high-denomination notes, these specially-designed credit cards can provide you all these benefits at a very low cost. (Reuters)

Would you like to have a dinner in a five-star restaurant where you are given discounts even without asking for them? Or would you like to go for a trip which could be absolutely free for you? Yes, credit card companies are making it possible for decades. During the cash-crunch phase, particularly after the Modi government’s announcement of demonatisation of high-denomination notes, these specially-designed credit cards can provide you all these benefits at a very low cost.

What are co-branded credit cards?

A co-branded credit card is issued by banks having tie-ups with retail partners, travel agencies, shopping brands or hotel groups. These cards come up with various offers designed as per the privilege assigned towards a particular card. Privileges can be in terms of discounts, reward points or bonuses. If you are facing any contrariety, 24×7 customer services are also there to help you out.

Types of co-branded credit cards

Airways Credit Card: If banning of high-denomination notes is creating a problem in your travelling, then you can go for this card which offers you a variety of advantages while travelling like dedicated check-in of baggage allowance, priority passes for accessing into a lounge, and dining discounts at airports. If you have consumed your travel limits for a year, your renewal fee may also get waived off for the succeeding year. New customers who don’t owe a co-branded credit card can avail the card and enjoy the benefit of welcome bonus ranging from 5000 – 20,000 and a complimentary air ticket varying from bank to bank offers. Commonly-used cards are JetPrivilege HDFC Bank World, Jet Airways ICICI Bank Sapphiro Credit Card, Air India SBI Platinum/Signature Card, and Axis Bank Vistara Signature Credit Card, among others.

Fuel Credit Card: Why do you want to increase your petrol cost by paying a surcharge on every purchase through your credit card? Why pay more when you have the option to avail ‘fuel credit card’ which does not allow you to pay a surcharge of 2.5% at different petrol pumps. In fact, it provides you various other benefits related to reward points on every purchase, up to Rs.10000. However, companies are putting some capping amount to avail the benefit of zero annual fees and waiver of surcharge prices. Commonly-used cards which do not have any capping for waving off the surcharge of 2.5% are HPCL-ICICI Credit Card, IndianOil Citi Platinum Card, and IndianOil Standard Chartered Super Value Titanium Card.

Railways / Metro Credit Card: On the purchase of an IRCTC card with a joining fee of Rs 500, you can get a cash back of Rs 100 and 350 bonus reward points which you need to utilise within a capping of certain days after the issuance date. Normalcy, 1 reward point equals to Rs 1 for AC ticket purchase and for other railway ticket purchase 1 reward point equals to Rs 125. Metro railcard also comes up with preloaded bonus points. In this card, the auto-recharge facility will give you payback / reward points benefits on having an auto top-up transaction and 10% – 20% of discount on travel fare at every metro station. The only available cards are IRCTC SBI Platinum Card, ICICI Bank Unifare Metro Credit Card (Mumbai/Delhi), and State Bank Mumbai Metro Combo Card.

Shopping/Movie Credit Card: These cards enable you to shop in more than 1000 outlets and e-shopping sites. The card gives you benefits at some of the outlets like FBB, Big Bazaar, Lifestyle, Home Center,etc. Some of the cards do not charge fees while others come up with exciting gift vouchers starting from Rs.500 to Rs.5000 and even more. After consuming a standard amount, you can earn bonus reward up to 50000 points. These cards provide 5% to 10% discount on selective products which may get changed from time to time or as per the offer made by the merchant. Of course, not only shopping, these cards also provide you free movie tickets ranging up to Rs. 6000 a year with certain terms and conditions. The best cards available are SBI Card ELITE Advantage, Citibank Rewards Card, Fbb SBI STYLEUP Card, Standard chartered Inner Circle Platinum Credit Card, and HDFC Solitare Credit Card, etc.

Dining Credit Card: After having a dinner at a restaurant or hotel, you have to pay hefty bills which include service tax, Swachh Bharat cess, Krishi Kalyan cess and VAT, which cannot be avoided at all. However, if you are carrying your co-branded credit card (offering discounts from 5% to 35%), you can at least save your tax amount and even more if the discount offered to you is more. You also get multiple offers through this card like, buy one get one meal free or your home delivery charges will be waived off if you order dishes of a certain amount. The association of this card is not limited to only one or two outlets, but thousands of outlets are linked to this card covering almost all the cities across the country. Some of the best cards are Standard Chartered Manhattan Platinum Card, HDFC Diners Club Black Credit Card, Citibank Rewards Card, and ICICI Bank Coral Credit Card, among others.

If you are not brand-specific, then you should ideally go for a regular credit card because the offers given by the co-branded cards are restricted to that particular brand only they are associated with.

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