A co-branded credit card is a credit card that is offered in partnership between a financial institution and a third-party brand, such as a retailer, airline, hotel chain, or other businesses. The card typically features the logo of both the financial institution and the partnering brand and offers rewards and benefits tailored to the specific interests of the brand’s customers.

Co-branded credit cards offer cardholders unique benefits and rewards that are often specific to the partnering brand. For example, an airline co-branded credit card might offer bonus miles for purchases made with the airline, while a hotel co-branded credit card might offer free room upgrades or complimentary breakfasts at the partnering hotel chain. In exchange, the partnering brand typically receives a percentage of the transaction fees generated by the card.

Co-branded credit cards can be a powerful tool for businesses to build customer loyalty and increase revenue, as well as a convenient way for consumers to earn rewards for their everyday purchases. However, it’s important for consumers to carefully review the terms and fees associated with a co-branded credit card before applying, as they may come with higher interest rates and annual fees than other types of credit cards.

List of the Best Co-branded Credit Cards Canada

Here are some of the best co-branded credit cards in Canada:

1. American Express AIR MILES Credit Card: This card allows cardholders to earn AIR MILES reward miles for every purchase made with the card. It also offers a welcome bonus of up to 2,000 AIR MILES reward miles.
2. BMO AIR MILES World Elite Mastercard: This card allows cardholders to earn AIR MILES reward miles for every purchase made with the card. It also offers a welcome bonus of up to 3,000 AIR MILES reward miles.
3. Marriott Bonvoy American Express Card: This card allows cardholders to earn Marriott Bonvoy points for every purchase made with the card. It also offers a welcome bonus of up to 50,000 Marriott Bonvoy points.
4. Scotia Momentum Visa Infinite Card: This card allows cardholders to earn cash back for every purchase made with the card. It also offers a welcome bonus of up to $300 cash back.
5. TD Aeroplan Visa Infinite Card: This card allows cardholders to earn Aeroplan miles for every purchase made with the card. It also offers a welcome bonus of up to 10,000 Aeroplan miles.
6. RBC Avion Visa Infinite Card: This card allows cardholders to earn RBC Rewards points for every purchase made with the card. It also offers a welcome bonus of up to 35,000 RBC Rewards points.
7. CIBC Tim Hortons Double Double Visa Card: This card allows cardholders to earn Tim Cash for every purchase made with the card. It also offers a welcome bonus of up to $20 in Tim Cash.
8. PC Financial World Elite Mastercard: This card allows cardholders to earn PC Optimum points for every purchase made with the card. It also offers a welcome bonus of up to 30,000 PC Optimum points.
9. Tangerine World Mastercard: This card allows cardholders to earn cash back for every purchase made with the card. It also offers a welcome bonus of up to $150 cash back.
10. WestJet RBC World Elite Mastercard: This card allows cardholders to earn WestJet dollars for every purchase made with the card. It also offers a welcome bonus of up to $350 WestJet dollars.
11. CAA Rewards Mastercard: This card allows cardholders to earn CAA Dollars for every purchase made with the card. It also offers a welcome bonus of up to $50 CAA Dollars.
12. Rogers World Elite Mastercard: This card allows cardholders to earn cash back rewards for every purchase made with the card. It also offers a welcome bonus of up to $25 cash back rewards.
13. Costco Anywhere Visa Card by Capital One: This card allows cardholders to earn cash back rewards for every purchase made with the card, including at Costco stores. It also offers a welcome bonus of up to $60 cash back.
14. Amazon.ca Rewards Mastercard: This card allows cardholders to earn Amazon.ca rewards points for every purchase made with the card. It also offers a welcome bonus of up to $20 Amazon.ca gift card.
15. Best Western Rewards Mastercard: This card allows cardholders to earn Best Western Rewards points for every purchase made with the card. It also offers a welcome bonus of up to 60,000 Best Western Rewards points.
16. Canadian Tire Triangle World Elite Mastercard: This card allows cardholders to earn Canadian Tire Money for every purchase made with the card. It also offers a welcome bonus of up to 4% in Canadian Tire Money on purchases made at participating retailers.
17. Meridian Visa Infinite Cash Back Card: This card allows cardholders to earn cash back for every purchase made with the card. It also offers a welcome bonus of up to $100 cash back.
18. Aventura Visa Infinite Card: This card allows cardholders to earn Aventura points for every purchase made with the card. It also offers a welcome bonus of up to 35,000 Aventura points.
19. Triangle Mastercard from Canadian Tire: This card allows cardholders to earn Canadian Tire Money for every purchase made with the card. It also offers a welcome bonus of up to 4% in Canadian Tire Money on purchases made at participating retailers.
20. RBC Cash Back Mastercard: This card allows cardholders to earn cash back for every purchase made with the card. It also offers a welcome bonus of up to 2% cash back on eligible grocery purchases.

Here’s a table summarizing the key features of the 20 co-branded credit cards in Canada we’ve discussed:

Note that the above table is for illustrative purposes only and may not include all the features, benefits, and fees associated with each co-branded credit card.

Pros of Co-branded Credit Cards

Here are some potential pros of using co-branded credit cards:

1. Rewards and Benefits: Co-branded credit cards offer unique rewards and benefits that are tailored to the specific interests and needs of the partnering brand’s customers. This could include points or miles that can be redeemed for travel, discounts, cashback, or other rewards. These rewards can be earned through everyday spending on the card, making it a convenient way to earn rewards.
2. Brand Loyalty: By partnering with a specific brand, co-branded credit cards can help build brand loyalty among customers. Cardholders may feel more incentivized to make purchases with the partnering brand in order to earn more rewards or take advantage of exclusive benefits.
3. Increased Purchasing Power: Co-branded credit cards may come with higher credit limits than traditional credit cards, which can give cardholders more purchasing power. This can be especially helpful when making large purchases, such as booking travel or making home improvements.
4. Special Perks and Discounts: Many co-branded credit cards offer special perks and discounts for cardholders, such as free shipping, early access to sales, or exclusive event invitations.
5. Credit Score Building: Co-branded credit cards can also help build credit history and improve credit scores if used responsibly. By making on-time payments and keeping credit utilization low, cardholders can demonstrate their creditworthiness and potentially qualify for better credit terms in the future.

Cons of Co-branded Credit Cards

Here are some potential cons of using co-branded credit cards:

1. Limited Rewards Redemption Options: Co-branded credit cards may offer rewards that can only be redeemed with the partnering brand or a limited number of other partners. This can limit the flexibility of the rewards program and may not be beneficial for those who prefer a wider range of options.
2. Higher Interest Rates and Fees: Co-branded credit cards may come with higher interest rates and annual fees than traditional credit cards. This can offset the benefits of the rewards program if the cardholder carries a balance or doesn’t use the card enough to justify the fees.
3. Limited Acceptance: Co-branded credit cards may have limited acceptance outside of the partnering brand or network, especially if the card is issued by a smaller financial institution. This can make it more difficult to use the card and earn rewards in everyday situations.
4. Lower Rewards Rate: Co-branded credit cards may offer a lower rewards rate for purchases made outside of the partnering brand or network. This can make it less attractive for those who don’t make frequent purchases with the partnering brand.
5. Potential for Impulse Spending: Co-branded credit cards may incentivize cardholders to make more purchases with the partnering brand in order to earn more rewards or take advantage of exclusive benefits. This can lead to impulse spending and potentially overspending if not managed responsibly.

Co-branded Credit Cards Facts

Here are some facts about co-branded credit cards:

1. Co-branded credit cards are a partnership between a financial institution and a third-party brand, such as a retailer, hotel chain, or airline.
2. Co-branded credit cards offer rewards and benefits tailored to the specific interests of the partnering brand’s customers, such as cash back, points, or miles.
3. Co-branded credit cards may have higher interest rates and annual fees than traditional credit cards.
4. Co-branded credit cards can help build brand loyalty among customers and increase revenue for the partnering brand.
5. Co-branded credit cards may have limited acceptance outside of the partnering brand or network.
6. Co-branded credit cards can help build credit history and improve credit scores if used responsibly.
7. Co-branded credit cards may offer special perks and discounts for cardholders, such as free shipping, early access to sales, or exclusive event invitations.
8. Co-branded credit cards may have limited rewards redemption options, which can limit the flexibility of the rewards program.
9. Co-branded credit cards may offer a lower rewards rate for purchases made outside of the partnering brand or network.
10. It’s important to carefully review the terms and conditions of a co-branded credit card and consider the potential benefits and drawbacks before applying.

Co-branded Credit Cards FAQs

Here are some frequently asked questions about co-branded credit cards:

1. How do co-branded credit cards work?

Co-branded credit cards are a partnership between a financial institution and a third-party brand. Cardholders can earn rewards and benefits specific to the partnering brand, such as cash back, points, or miles, for every purchase made with the card.

2. What are the benefits of co-branded credit cards?

Co-branded credit cards offer unique rewards and benefits tailored to the specific interests and needs of the partnering brand’s customers. They can also help build brand loyalty and increase revenue for the partnering brand.

3. What are the drawbacks of co-branded credit cards?

Co-branded credit cards may have higher interest rates and annual fees than traditional credit cards. They may also have limited acceptance outside of the partnering brand or network and limited rewards redemption options.

4. Can co-branded credit cards help improve credit scores?

Yes, co-branded credit cards can help build credit history and improve credit scores if used responsibly. By making on-time payments and keeping credit utilization low, cardholders can demonstrate their creditworthiness and potentially qualify for better credit terms in the future.

5. How do I choose the right co-branded credit card for me?

To choose the right co-branded credit card, consider your spending habits, financial goals, and the specific rewards and benefits offered by each card. It’s also important to carefully review the terms and conditions, including interest rates, fees, and rewards redemption options.

6. What are some of the most popular co-branded credit cards in Canada?

Some popular co-branded credit cards in Canada include the American Express AIR MILES Credit Card, BMO AIR MILES World Elite Mastercard, Marriott Bonvoy American Express Card, Scotia Momentum Visa Infinite Card, TD Aeroplan Visa Infinite Card, and RBC Avion Visa Infinite Card, among others.

7. Can I use a co-branded credit card for everyday purchases?

Yes, you can use a co-branded credit card for everyday purchases just like any other credit card. The rewards and benefits offered by the card may be tailored to specific types of purchases or brands, but you can still earn rewards for other purchases as well.

8. Can I redeem my co-branded credit card rewards for cash?

The ability to redeem co-branded credit card rewards for cash may vary depending on the specific card and rewards program. Some co-branded credit cards may offer cashback rewards that can be redeemed for cash, while others may offer rewards that can only be redeemed for specific products or services.

9. How can I maximize my rewards with a co-branded credit card?

To maximize your rewards with a co-branded credit card, consider making purchases with the partnering brand or within the partnering network to earn higher rewards rates. You can also take advantage of special perks and discounts offered by the card, such as early access to sales or exclusive event invitations.

10. Are co-branded credit cards better than traditional credit cards?

Whether a co-branded credit card is better than a traditional credit card depends on your specific financial needs and goals. Co-branded credit cards may offer unique rewards and benefits, but they may also come with higher interest rates and fees. It’s important to carefully review the terms and conditions of each card and choose the one that best fits your financial situation.

11. How can I compare co-branded credit cards?

To compare co-branded credit cards, consider factors such as the rewards program, welcome bonus, annual fee, additional benefits, and potential drawbacks. Look for a card that offers rewards and benefits that align with your spending habits and financial goals.

12. Can I have multiple co-branded credit cards?

Yes, you can have multiple co-branded credit cards as long as you can manage the accounts responsibly. However, having multiple credit cards can also increase the risk of overspending and carrying a balance, which can result in high interest charges and fees.

13. What should I look for in the terms and conditions of a co-branded credit card?

When reviewing the terms and conditions of a co-branded credit card, look for information on the rewards program, interest rates, fees, grace period, credit limit, and potential penalties or fees for late payments or exceeding the credit limit.

14. How can I avoid paying interest on my co-branded credit card?

To avoid paying interest on your co-branded credit card, pay off your balance in full each month before the due date. If you can’t pay off the full balance, make at least the minimum payment on time to avoid late payment fees and potential damage to your credit score.

15. What should I do if I have trouble managing my co-branded credit card account?

If you have trouble managing your co-branded credit card account, contact the issuer or partnering brand for assistance. They may be able to offer resources or tools to help you manage your account responsibly and avoid late payments or missed payments.

16. Can I cancel my co-branded credit card?

Yes, you can cancel your co-branded credit card at any time. Contact the issuer to initiate the cancellation process and be sure to pay off any outstanding balance on the card.

17. What happens to my rewards if I cancel my co-branded credit card?

The treatment of rewards upon cancellation of a co-branded credit card may vary depending on the specific rewards program and card issuer. Some programs may allow you to transfer your rewards to another rewards program or redeem them before cancelling the card. Others may require you to use or forfeit your rewards before cancelling the card.

18. Can I transfer my co-branded credit card balance to another card?

Yes, you can transfer your co-branded credit card balance to another card that offers balance transfer options. However, be sure to review the terms and conditions of the new card and understand any balance transfer fees or promotional interest rates that may apply.

19. Can I change my co-branded credit card to a different card offered by the same issuer?

Yes, you may be able to change your co-branded credit card to a different card offered by the same issuer. Contact the issuer to inquire about options for changing your card.

20. Can I apply for a co-branded credit card if I have bad credit?

Co-branded credit cards may have specific credit score requirements, so having bad credit may make it more difficult to qualify. However, there may be co-branded credit cards that cater to those with lower credit scores or offer credit-building benefits. Be sure to review the terms and conditions of each card before applying.