Co-Branded Credit Cards: What Are They And Should You Get One?

A co-branded credit card is affiliated with a specific company (like a retailer, airline or hotel) as well as the financial institution that issued the card (such as Chase or American Express). You will typically find both brands and logos displayed on the card itself. Some examples of popular co-branded cards include:

• Hilton Honors American Express Surpass® Card
• Prime Visa
• Costco Anywhere Visa® Card by Citi*

Co-branded cards frequently offer brand-associated exclusive benefits, rewards or discounts to cardholders. They may also offer network or issuer-specific benefits, such as the Visa Signature program, which includes travel and purchase protections beyond the issuer and retailer’s offering.

Co-branded credit cards work like any other credit card—cardholders can use these cards anywhere its network (for example, Visa or Mastercard) is accepted. This is unlike store cards that restrict purchases to the specific store and its partners.

Generally, co-branded cardholders receive exclusive rewards and offers specific to the retailer, airline or hotel. As long as you maintain an account in good standing, you can take advantage of discounted rates or travel perks. Benefits might include the potential to earn upgraded membership status—especially for airlines and hotels with tiered membership systems.

Each co-branded card has a bank or issuer directly managing the account and reporting your activity to a credit bureau. You’ll have to log in to your online account on the card issuer’s website to access your purchase history, make payments and manage your account.

The retailer partners with a bank or issuer to approve new cardholders and make exclusive offerings. You can usually apply for a co-branded credit card at a store or service location, online or by mail.

There are several benefits to applying for a co-branded credit card, especially if you frequently use a specific retailer for shopping or travel. For example, co-branded airline cards might waive baggage fees and offer priority boarding.

Hotel cards sometimes offer room upgrades, late checkout and elite status. Co-branded store cards can offer significant discounts and cash-back potential.

Despite the benefits, a few downsides exist with co-branded cards. Most benefits offered to you with a co-branded card are limited to the brand partnered with the card issuer and network. Points or rewards may not be transferable to other retailers or services, making these cards less versatile than cash-back credit cards or those with flexible rewards that allow you to redeem points for a wider variety of services or products.

Co-branded cards might also have a higher APR than average, so you’ll want to be more careful with your payments to avoid high interest fees. Some cards have strict rules to qualify. For example, the Costco Anywhere Visa® Card by Citi* requires applicants to have a Costco membership and many premium airline cards require excellent credit scores for approval (800 and above in the FICO scoring model).

However, if you’re constantly shopping at Amazon or flying American Airlines, the exclusive perks could make signing up for a co-branded credit card particularly lucrative.

Although co-branded cards can be attached to any type of brand (retail credit cards are especially prevalent), co-branded travel credit cards are one of the most popular—and valuable—choices. Here’s a look at whether you should consider a credit card specifically tied to an airline or hotel compared to a more flexible, general travel rewards card.

Account Features	Co-branded Travel Cards	General Travel Cards
Reward Earnings	Earn points or miles for use with a specific hotel or airline.	Earn rewards that can be redeemed with a large variety of travel brands.
Elite Status	May provide automatic elite status and/or a path to earn status with card spending.	Most general travel cards don’t offer status perks or a way to establish elite status through card spending.
Travel Perks	May provide benefits when traveling with the brand, such as free checked bags.	Airline or hotel-specific benefits are rarely offered.
Airport Lounge Access	May provide access to branded airline lounges.	May provide lounge access through general networks.
Travel Protections	May provide trip protection or travel insurance.	May provide trip protection or travel insurance.
Statement Credits	May provide statement or travel credits for use with the designated brand or their partners.	May provide statement or travel credits for use within the card’s booking portal and with retail partners. In some cases, credits may be more flexible.
Spending Bonuses	May provide opportunities to earn extra perks, like companion certificates or free nights, when spending a certain amount on the card.	There are rarely bonuses for hitting spending thresholds beyond the initial welcome offer.

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How To Get a Co-Branded Credit Card

Applying for a co-branded credit card typically reflects the same process as applying for traditional credit cards. You can apply online on the card issuer’s website, or fill out an application in-store or even on the plane while flying.

Because card issuers manage co-branded credit cards, expect to see a hard credit check on your credit reports upon application. Make sure to research what credit score is recommended for your preferred card before you apply.

Look for preapproval tools on a card issuer’s website. Checking whether you’re preapproved won’t hurt your credit score and can tell you whether you’ll likely qualify for a card.

Co-branded credit cards might be an ideal option if you make most of your purchases with the same airlines, hotel groups or retailers. But be sure to analyze the cons—you might lose flexibility with reward points by signing up for a co-branded card and receive higher APRs than with other credit cards. Practice responsible spending to improve your credit score and keep your balances low.