Co-Branded Credit Cards

What Is a Co-Branded Credit Card?

A co-branded credit card is a card affiliated with a particular company or organization that also belongs to a major credit card network. These parties work with an issuing bank to create a credit card that bears the affiliate’s name, provides benefits to brand-loyal consumers, and can be used anywhere. As a result, cardholders gain rewards and discounts from the brands they are most loyal to, while affiliated companies acquire a larger customer base.

Key Things to Know About Co-Branded Credit Cards

• Notable examples: Popular cards include the Costco Anywhere Visa® Card by Citi, the Amazon Credit Card and The World of Hyatt Credit Card.
• Where you can use them: Co-branded cards work like regular credit cards, and you can use them anywhere.
• Rewards program: Rewards are tailored specifically to the services offered by the affiliated company or organization. You typically receive the highest rewards earning rates from the purchases you make directly with the partnered company.
• Annual fees: Many co-branded credit cards charge annual membership fees in order to support their generous rewards programs and encourage frequent use.

Below, you can learn more about how co-branded credit cards work and browse some of the best offers.

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How Co-Branded Cards Work

You can use co-branded credit cards anywhere, just like regular credit cards that aren’t associated with merchants. The difference is that co-branded credit cards usually offer rewards and benefits within the partnered merchant’s loyalty program, and you’ll typically get the highest earning rates from purchases you make directly with that merchant. So, you should opt for a card from a brand that you know you will make regular transactions with.

For example, if you fly with United Airlines often, you should opt for a United Airlines credit card that gives United Airlines miles as rewards, along with perks like lounge access, priority boarding or checked-bags. There’s no point in getting a credit card from a different airline that you don’t use frequently.

Should You Get Multiple Co-Branded Cards?

You might be tempted to get credit cards affiliated with all of your favorite stores, thinking you can simply use each occasionally whenever you shop with the respective retailers, and then stockpile the rewards you earn for future benefits. Spreading yourself too thin in this manner is a mistake for a few reasons:

1. You may end up paying multiple annual fees. Co-branded credit cards often charge annual membership fees in order to support their generous rewards programs and encourage frequent use. You therefore need to make sure the rewards you earn will outweigh the cost of the card. This is difficult with more than a couple of cards.
2. You’ll risk devaluation. Merchants can change the number of points or miles needed for certain perks whenever they want, thereby devaluing any large stores of rewards that you’ve been saving up. That’s why it’s best to only get a card whose rewards you can redeem on a regular basis.
3. You could cause credit score damage. It’s best to wait at least six months between credit card applications to give your credit score time to recover from the hard credit pull required by the issuer.

We recommend getting no more than a few different co-branded credit cards. This will enable you to maximize the benefits you receive from each without overburdening yourself or spreading your rewards accumulation too thin.

Co-Branded Credit Cards vs. Store Cards

Co-branded credit cards are often confused with private label credit cards, more commonly known as store cards. Store cards are more restrictive and can only be used at their partnered retailers’ stores. Co-branded credit cards, on the other hand, function like any other regular credit card and can be used anywhere that accepts the network they’re on (e.g., Mastercard, Visa).

Best Co-Branded Credit Cards in 2026

Should You Get a Co-Branded Credit Card?

You should get a co-branded credit card if it will save you money. In other words, get a co-branded card if:

1. You make purchases with the same company often or you find an offer with bonus rewards in your biggest spending categories.
2. You’re able to qualify for your chosen co-branded card based on your current credit score. If not, and the card is from a merchant, you may be able to get a store card
3. The value you expect to get out of the card in a year – between rewards and supplemental perks, minus any annual fees – exceeds what you’d get from one of the best general-purpose rewards cards.

You can use WalletHub’s free credit card comparison tool to see how your favorite co-branded cards stack up against the competition. Some co-branded cards offer extremely lucrative rewards and benefits, while others can be lackluster and just a trap for brand-loyal consumers.

Pros & Cons of Having a Co-Branded Credit Card

Co-branded cards can add a lot of value to your wallet, but they’re not always the best choice. Below, we’ll go through the advantages and disadvantages of having a co-branded credit card in detail.

Pros

• Rewards: Many co-branded cards offer substantial rewards in the partnered merchant’s loyalty program. The ability to earn rewards on all purchases, rather than just purchases at the store, can help your rewards grow quickly, too.
• Supplemental perks: Many co-branded cards offer valuable perks with their partnered merchants, like free shipping on items or special discounts. Cards co-branded with hotels or airlines can offer benefits like upgraded status levels, a fourth night’s stay free, priority boarding, free checked bags, or airport lounge access.

• Flexibility: Unlike store credit cards, you can use co-branded credit cards outside the merchants they’re affiliated with. You can use them anywhere that displays the same credit card network logo that’s on your card.

• Initial bonuses: Many co-branded cards give a bonus for spending a certain amount of money within the first few months of card membership. For example, the Hilton Honors American Express Surpass® Card offers 130,000 Hilton Honors Bonus Points for spending $3,000 in the first 6 months.

Cons

• Rewards may not always be good: Some co-branded cards may offer less value in rewards than you’d get by using one of the best general-purpose rewards cards, even for purchases at the co-branded card’s partnered merchant.
• Rewards can be devalued: Co-branded cards usually offer points or miles rather than cash back, which means the credit card company can devalue your rewards at any time.
• Fewer redemption options: You’ll earn rewards in the affiliated merchant’s loyalty program, which means you might only be able to redeem them for purchases or perks with that merchant. General-purpose rewards cards offer more flexible rewards redemption.
• Your preferences may change: If you stop liking a particular merchant, you’ll be stuck with a card that’s not very useful to you anymore, since the rewards will still be for that merchant’s loyalty program. In that case, you can either leave the card open but not use it or close it. Leaving it open is better for your credit score, but closing it is the better choice if the card has an annual fee.
• Fees: Some co-branded credit cards charge annual fees to offset their rewards, though there are plenty of examples with $0 annual fees.

How Merchants Create Co-Branded Credit Cards

In order to establish a co-branded credit card, a company or organization first decides which credit card network to put the card on. It then has to write up a business outline to send to the chosen credit card network, which will include information about the company’s operations and its customer base. Then, the company determines which issuer within the network to work with. Finally, it sends a proposal to the selected issuer and establishes a contract with that issuer. This process usually takes a minimum of 6 months.

Establishing a co-branded credit card is usually the right option for merchants that:

• Have a lot of repeated customer transactions
• Have a large base of customers
• Have a customer rewards/points program

Companies that have those features are good candidates because they have loyal customers who would benefit from a convenient way to earn extra rewards and perks. In addition, they have a good amount of people to market a potential credit card to.

That’s why some of the best co-branded credit cards overall belong to some of the most popular merchants and travel providers in the country.