Enough with the super-niche cobranded credit cards already
Editor's Note
I remember when cobranded credit cards made more sense. Ah, the good old days.
Cobranded credit cards (ones that earn rewards with a specific airline or hotel brand) launched with broad appeal because most customers could find enough value to justify the annual fee — even if they weren't die-hard fans of that brand. Free checked bags and free breakfast are slam-dunk benefits on cards.
When the pandemic hit years ago, things changed. People stopped traveling, and credit card issuers scrambled to convince customers to keep their cards — and continue to pay annual fees — during that time.
How did they do this? Through new partnerships that supposedly added value and could be used at home. These partnerships have since expanded and birthed a wide range of new cobranded cards. But are there too many cobranded credit cards now? Let's take a look at what happened.
New credit card partnerships during the pandemic
"I'm not traveling, so why should I pay a fee for a travel credit card?"
Banks feared this mentality when borders closed and people curbed their travels for a few years. The logic made sense, though. Was it worth paying for a credit card offering a lounge membership and free checked bags when you weren't flying anywhere?
Many banks added benefits with previously unseen partners to entice customers to keep their credit cards open. Here are some examples:
- Streaming credits and bonus rewards on streaming purchases: Numerous credit cards started to offer streaming-related benefits, thanks to the explosion in popularity of these services while people stayed at home. The catch is that most of these credits aren't sufficient to cover the cost of the streaming services. For example, the U.S. Bank Altitude® Go Visa Signature® Card offers just $15 in credits for streaming annually, but you need to pay for a streaming charge with your card each month for 11 months in a row before you earn this $15.
- Allowing you to use travel credits for other purchases: Credit cards with annual travel credits allowed people to use those credits elsewhere in 2020 and 2021, such as at supermarkets and dining establishments, but that flexibility has ended.
- Temporary monthly credits: American Express was the most robust here, offering temporary monthly credits for streaming, wireless and dining purchases across multiple cards.
- New partnerships not related to the credit card: With a travel credit card, you expect your benefits to be related to travel. However, this changed. Here are some examples: The Marriott Bonvoy Brilliant® American Express® Card lost its easy-to-use annual credit at Marriott (the brand stamped on the front of the card), instead offering up to $300 in annual dining credits at restaurants worldwide that are tougher to use. The Platinum Card® from American Express added statement credits with Equinox (up to $300 each year; subject to auto-renewal) and SoulCycle (up to $300 each year on a single online purchase of a SoulCycle At-Hone Bike) that don't come close to covering the costs of the eligible purchases (enrollment required for select benefits). The Chase Sapphire Reserve® (see rates and fees) offers a DoorDash DashPass subscription when you register by December 31, 2027, and bonus earning rates with Peloton. Unfortunately, these perks also came with increased annual fees on these cards.
Our 2022 prediction of further expansions of these partnerships was correct. As they expanded, they evolved these partnerships into new cobranded credit cards.
The information for the U.S. Bank Altitude Go has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Cobranded cards have become very niche
Many of these newfound bank-brand partnerships turned into cobranded credit cards. However, these card launches tend to be very niche, unlikely to attract anyone not already loyal to the brand stamped on the front of the card.
For example, over the past few years, Chase has launched the Instacart Mastercard and DoorDash Rewards Mastercard. While both may be popular with fans of those brands, they don't offer much to convince outsiders. The Instacart Mastercard offers just one year of Instacart+ (providing reduced fees on certain orders) before requiring cardholders to pay $99 a year for this service. The DoorDash Mastercard offers even less to convince outsiders: mainly discounts on orders, which aren't permanent.
The information for the Instacart Mastercard and DoorDash Reawards Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Other cards are even more niche.
Consider the fan-based credit cards from Cardless, which offered cards related to NBA and English Premier League sports teams. Most cardholder benefits were related to a fan kit received on account opening, discounts on tickets and memorabilia, plus bonus earnings at the team's official store. If you're a die-hard fan of these teams, you may be excited to receive these discounts; for anyone else, these cards were unlikely to merit attention.
Cardless offers another unique cobranded card: the Simon® American Express® Credit Card. This card earns 5% back at Simon Malls properties (including outlets) in the U.S. and 5% at select retailers within these malls. Many people shop online now, so launching a credit card tied to shopping malls and offering just 1% cash back outside the malls is unlikely to attract the average consumer.
2022 also saw the launch of the Mana Visa® Debit Card. Aimed at gamers, this card allowed you to earn rewards on real-world purchases, but you can't redeem your earnings for cash back. Rather, rewards were valid only for video game purchases and gift cards. However, this card is no longer available.
The information for the Simon Amex and Mana Visa cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
To be clear, offering non-compelling cobranded credit cards is not entirely new. Consider these gas station and cruise line credit cards that we don't think are worth holding. However, the launch frequency and narrow focus of cobranded credit cards have increased in the past two years.
Bottom line
I'm not against new credit cards coming into the market. However, I fail to see what many offer to attract someone not already spending money with that brand regularly. For example, if I'm not already placing frequent orders with DoorDash, does that card offer enough to entice me to apply for it? Unlikely.
We see increasing numbers of cobranded credit cards, and each offering seems less impressive than previous launches. Are there too many cobranded credit cards? I think so. Unfortunately, we'll likely see even more of these in the future, with credit card issuers looking for additional revenue streams.
Read more: Why you need a credit card with your favorite hotel brand
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| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Packed with credits foodies will enjoy
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Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.