Co-branded credit cards are partnerships between issuers and brands such as airlines, hotels, or retailers. These cards offer rewards specific to the brand, like airline miles or hotel loyalty points, and often come with perks such as free checked bags, elite status, or discounts. They’re particularly valuable for loyal customers who regularly engage with the brand.

The trade-off is that co-branded rewards are less flexible than general points. Miles might only work with one airline, or hotel points only with one chain. For someone who is loyal to a specific company, these cards can be very rewarding. For others, a general-purpose rewards card may offer more versatility. Understanding your travel and spending habits is key when deciding if a co-branded card is worthwhile.