The festive season is the perfect time for shopping! Whether you’re eyeing new clothes, electronics, or even jewellery, retailers and online platforms are offering massive discounts to attract shoppers. To supercharge your savings, using a co-branded credit card can make a big difference. These cards, created in partnership between banks and brands, give you exclusive rewards, cashback, and more when shopping at specific stores. Here’s how co-branded credit cards can help you maximize your savings this festive season:
What Are Co-Branded Credit Cards?
Co-branded credit cards come with benefits tied to a specific brand or merchant. Using these cards at the partner brand gets you perks like:
- Higher reward points
- Exclusive discounts
- Instant cashback
- Other partner-specific deals
Benefits of Co-Branded Credit Cards
1. Exclusive Discounts and Offers
- Co-branded cards often offer special discounts that you won’t get with regular credit cards. These are typically only available when you shop at the partner brand during festive sales.
2. Higher Reward Points
- Earn extra reward points on purchases made with a co-branded card. During festive sales, these points can add up quickly, especially for high-value items like electronics and appliances.
3. Instant Cashback
- Many co-branded cards offer instant cashback on purchases. For example, if you buy a TV worth ₹40,000 and get a 10% sale discount, the price drops to ₹36,000. If your co-branded card offers 5% cashback, you’ll save an additional ₹1,800, bringing the total cost to ₹34,200!
4. No-Cost EMI
- As Adhil Shetty, CEO of BankBazaar, mentions: “Co-branded cards often offer no-cost EMI options during festive seasons, helping you spread out payments without added interest.” This can be a huge saver compared to regular EMI plans.
5. Additional Partner Perks
- Apart from retail discounts, co-branded cards may also offer deals on flights, hotels, and dining—perfect for holiday travel!
How Co-Branded Credit Cards Can Help You Save on Big Purchases
Let’s take a real-life example of how much you can save on a big purchase, like a TV:
- Item Price: ₹60,000 (Original TV price)
- Sale Discount (15%): ₹9,000 (Festive season discount)
- Price After Discount: ₹51,000
- Cashback (5%): ₹2,550 (Co-branded credit card cashback)
- Final Price: ₹48,450
- No-Cost EMI Interest Savings: ₹3,250 (Savings on interest)
- Total Savings: ₹14,800!
By using a co-branded credit card, you’re able to save a substantial amount through a combination of discounts, cashback, and EMI savings!
Happy shopping, and maximize those savings!