What's REALLY the difference with branded and co-branded?

[icyhot]

I keep seeing people saying that ci-branded cards with some lenders are easier to get than their flagship cards. I'm really curious as to why or if anyone has insight on the reasoning. If someone defaults on a BCE or CSP, the bank will take the same hit as if it was on a Delta Amex or Marriott card. Am I missing something?

[Anonymous]

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@icyhot wrote:
I keep seeing people saying that ci-branded cards with some lenders are easier to get than their flagship cards. I'm really curious as to why or if anyone has insight on the reasoning. If someone defaults on a BCE or CSP, the bank will take the same hit as if it was on a Delta Amex or Marriott card. Am I missing something?

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I don't know, but maybe the Mariott, Delta etc. shares in it

[pipeguy]

Citi backs my Brooks Brothers ($2100), Wawa ($1000), Macy's ($5000) and Home Depot ($20,000) with no issues, no lates, usually PIF on all except special 0% financing through HD at times but will NOT approve me for a Branded CitiBank card - go figure 

[ddemari]

cobranded cards can be easier to get with certain lenders. Delta Amex is known for being an easy amex revolver. Chase is known to be flexible on their cobranded cards from United to Marriott. but Citi and their cards, forget it on being easy. 

[Anonymous]

I think, perhaps, the Company (not the CC company) expects to have a certain % approved and may be willing to relax on criteria for approval. I would think the company would have some sort of "insurance" against a default, but I could be wrong.

[Sharingan]

Well, cobranded cards generally have above average interest rates, especially those store cards; so risk has been assessed accordingly across that entire portfolio by the bank. It's also possible that the associated party has assumed some of the risk with the bank for relaxing underwriting criteria for their particular brand's credit card. 

It's really hard to tell what agreements have been arranged for these products.

[NRB525]

Let's turn the question a little bit:

Name a co-branded credit card (not a store card) that does NOT have an AF.

The co-branded points systems, except for SPG, tend to go into just one program, you are tending to be locked into one redemption option. Marriott is another example where the points can be transferred elsewhere, for something of a penalty on the way out.

[Espresso]

Capital One GMC BuyPower does not have AF. 

[Anonymous]

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@NRB525 wrote:

Let's turn the question a little bit:

Name a co-branded credit card (not a store card) that does NOT have an AF.

The co-branded points systems, except for SPG, tend to go into just one program, you are tending to be locked into one redemption option. Marriott is another example where the points can be transferred elsewhere, for something of a penalty on the way out.

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Hilton has 2 no AF cards, 1 with Amex and 1 with Citi.

[NRB525]

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@Espresso wrote:

Capital One GMC BuyPower does not have AF. 

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And how does one collect on the "rewards" offered by the Buy Power card? By spending tens of thousands on a new vehicle with vague pricing structures