When do co-branded cards make sense?
Co-branded cards provide additional benefits in the form of discounts; they work better than plain vanilla card.
Unlike the plain vanilla credit card, co-branded credit cards are for a specific purpose, like purchase of fuel or shopping at a retail chain or even when flying a specific airline. While these have all the features of a normal credit card, they provide some extra value to the customer. This value is in the form of rewards, discounts or special offers. Remember, like all credit cards, co-branded cards may also come at a cost or without any fee. One should use these cards when they have excessive usage at such preferred networks or chains. .
As the card provides additional benefits in the form of discount, they tend to work better than the plain vanilla card. Those looking for focused benefits like airline mileage, fuel surcharge waiver or exchange of reward points for fuel, and additional discount on purchases at retail store chains benefit from such cards.