Ask A Blogger Series: Cobranded Credit Cards You Wish Existed

Awhile ago I asked a number of travel/points & miles/credit card bloggers what they thought the most underrated credit card is and why. I had a lot of really positive feedback about that post (and a lot more bloggers seemed to talk about the IHG card as a result) so I thought I’d run a series of posts called “Ask A Blogger”. This is the first post in that series, you can view more posts here.

Here is the question I asked verbatim:

What is one co-branded credit card you wish existed? What would you want the benefits and sign up bonus of this card to be? (Please try to keep this realistic, a 100% cash back card would be fantastic but it would never happen).

Responses

Accor

Accor. No doubt about it. It’s the fifth largest hotel chain in the world. As to the benefits, they don’t use charts. so it’s complicated. I think you can redeem around $60 for 2,000 points, but it varies, so I would need at least 20,000 points sign up bonus, or two free nights at any Accor in the world (and not just weekend nights, I hate that about the Hilton Reserve card). If they offered sensible elite status with the card, that would help too.

Lazy Travelers

AirBnB

Tough question, there are so many co-branded credit cards that partner with airlines and hotels already. It would be interesting to see an Airbnb credit card with 5% cash back on Airbnb reservations. Sign up bonus would probably be $100 off your first Airbnb reservation.

Travel With Grant

Airline

I’d love to see a co-branded airline credit card that offered more than 1X on all purchases – I’d take 1.5X but maybe say 1.25X so as not to be greedy. Coupled with, say, a 40K sign up bonus (again, trying not to be greedy) I’d find the card very tempting. Then I’d just want the usual perks like free checked bag, priority(ish) boarding, etc. Regardless of the airline (though of course at the moment I’d love for it to be AA), a card like this would receive strong consideration for frequent use even post sign up bonus.

As The Joe Flies

 

It would be great to see an airline credit card that offered a free award flight benefit when redeeming points just like the Club Carlson credit card. This would obviously be tougher to manage with certain restrictions (likely not applicable on business/first class awards) and would like have the annual fee near $400-$500 and/or certain annual spend requirement before the benefit is activated. For example, if it was a United credit card, if you a cardmember redeemed United miles for an economy ticket, then they would have the option to include a second award ticket for no additional points, just taxes/fees, provided there is award space

PointsCentric

 

I can’t think of a co-branded credit card I want that doesn’t already exist. However, one benefit I wish was included in my existing co-branded credit cards was some sort of “get out of jail free” option with the airlines. Any time we miss a flight, book one on the wrong day or otherwise make a mistake, the airlines charge us. When they have a plane break, the answer is usually “sorry” without much else. Sometimes there’s compensation, but never as severe as the penalties opposed on frequent customers who buy lots of tickets.

Pizza In Motion

Airline Alliance

So, I’m going to go out on a limb here. The business models for Airline Alliances really don’t lend themselves to miles earning cards, but, it would be interesting to see something like a OneWorld Alliance Visa. It’d be a transferrable points type card, ideally backed by AMEX (because, well, they’re losing stuff right and left), or Chase (because, while Citi is eating AMEX’s lunch, Chase keeps on chugging and provides excellent customer service), with transfer partners comprising the entirety of the OneWorld Alliance.

This would be huge because:

1. American Airlines is under-represented as a transfer partner for existing options
2. This would open up more abilities to leverage more niche programs that have sweet spots
3. It would provide a breath of fresh air into what is at times a tenuous balance between airlines.

As far as a sign-up bonus, realistically, you’d hope that it would provide enough for a free round-trip Economy ticket. That appears to be one of standard measures. However, some (BA, I think JAL, and QR) have distance based currencies. American only requires 25k for a domestic round trip, but I think this card would ideally aim higher. A reasonable expectation would be 50k. This would provide huge marketing power, because you could transfer 4,500 to BA for a one-way, 25,000 to American for a round trip (domestic US), etc. Additional benefits would include:

1. No foreign transaction fee (this is a world alliance after all),
2. 3x for OneWorld Alliance member purchases,
3. Perhaps 2x for “travel” purchases, to include Rentals and Hotels, (maybe even as expansive as Barclay’s definition for the Arrival, but that may be pushing it). –

Tagging Miles (Trevor)

American Airlines

Co-brand card I wish existed: a premium American Airlines card that represented strong value at the price point. Citi Executive shouldn’t just be remembered as a vehicle for great signup bonuses during the first half of 2014.

I’m keeping my card because I can spend towards 10,000 miles in elite status credit, and that’s better for me than buying a ticket and taking a mileage run if I come up short for status. But it’s a $450 card that’s basically one mile per dollar, and gets access to only one airline’s lounges.

In contrast United version is stronger-earning with stronger benefits (1.5x all spend plus Hertz status and primary rental car collision plus second checked bag fees and waived award redemption fees) and at a lower price point.

My focus would be either matching United Club card on 1.5x earning, or offering strong category bonuses. In a dream world it might confer some meaningful status with a hotel chain or rental car company. Or just offer it as an American-branded Prestige card at the Prestige price point plus American elite qualifying miles based on spend.

 View From The Wing

Cash Back

For me, the biggest criteria for picking a credit card is a sign-up bonus. I will pretty much stay in any hotel chain and fly any airline (except Aeroflot, long story), as long as it’s close to free. Loyalty is way overrated in this hobby. I aim for a $350 value upfront, with strong preference to cash.

Miles For Family

Chase UR Military Card

Chase offers military-specific cards that offer 2% cash-back at Military Exchanges currently. I’d like one where you could opt for 2% cash back OR 2 Ultimate Rewards points per dollar at exchanges, as well as commissaries and any on-base purchases. 20-30k signup bonus, and no annual fee for active duty.

Military Frequent Flyer

Chipotle

A Chipotle Credit Card would be nice, but doubt the benefits (free food) and burrito signup offer would outweigh the 5-10x I get from other cards for food. They need to do a damn rewards program, sorry just me ranting here.

Doctor of Credit (MilesWhip)

Direct Marketing

I wouldn’t mind seeing at least 3x card for “Direct Marketing” with AMEX earning Membership rewards. Who they would cobrand? Maybe Google? Or Microsoft? Possibly some leading advertising company. I specifically mention “Direct Marketing” and not the 3x that’s offered on the Business Rewards Gold where it is specific marketing companies. Sign up bonuses are just gravy to me. I recently did a $100 sign up bonus and on a separate product for 25,000 miles. For a points sign up, I’d say a minimum of 25,000 points. I specifically want this category because there are so many gift card vendors that are “Direct Marketing” and doing a gift card churn would lower the average cost per point.

Chasing The Points

Four Seasons

No doubt about this one for me. Come on Four Seasons card…where are you? A bonus of 2 free nights (like Hyatt, Hilton, etc) would be a huge draw. We’re in this for truly spectacular getaways, right? And it’s hard to beat Four Seasons. Too bad they do NOTHING of significance for Average Joes who like loyalty programs.

 Mile Nerd

I actually just said in my post on using hotel points for the T&L top 500 hotels that I wish that there were a Four Seasons card. I could realistically see a Chase card giving two free nights as they’ve got most of the other main players. Ritz Carlton was the only competitor for top 500 hotels.

Travel is Free

It would be great to see several more co-branded hotel credit cards to round out award stay options. A co-branded Four Seasons credit card would be an interesting option for luxury stays, and if it offered 2 free nights and some stay perks it would be comparable to the Hyatt or Fairmont credit cards.

 Well Travelled Mile

Hertz/National

Tie for National or Hertz. At a Q&A once a Chase rep said no one wants a rental car credit card, not sexy for brand association. For me, I would love a way to generate low cost rentals, one of the areas I still have significant out of pocket spend in my travels.

 Rapid Travel Chai

Hyundai

This probably sounds funny but I wish there was a cobranded card for my preferred car maker Hyundai. I have always driven one and I will most likely purchase one when my current one needs replacing. GM has one so why not this manufacturer. Even at 2-3% I can do some MSing to help defray the costs of a new car.

Giddy For Points

Kimpton

I would love to see a co-branded Kimpton card since they are a hotel chain that I love. Their Kimpton Karma loyalty program is fun, innovative, and unique. Since it is not points-based, it’s hard to imagine what kind of sign-up bonus the card would come with (or even how points would be earned), but some of the cardmember perks I’d like to see are perhaps: free nights (at least one per year), status upgrade, special discounts at the resorts or restaurants (maybe even a “chef’s tasting” surprise or some sort of personalized amenity). I am already an Inner Circle member via a status match, but a co-branded credit card would be a fun way to motivate me to actually qualify in terms of stay credits.

Just Another Points Traveler 

RadPad

I would want a card that gives me maximum reward possible in a category I don’t already earn max (3-5%) in right now. Right now since I would say I earn a half percent back in almost everything but rent payments (1% via PPBDC). My cobranded card would be Radpad, via a smaller lesser known bank (too many chase credit cards right now). They would offer 3x (wanted it to be 5x but seems unrealistic) back on payments for your rent or mortgage, but instead of it being just straight cash back it would be a credit on their site towards future payments. This way you get a bit of a rebate back on every payment. Also it would be possible for them because all of the fees they accrue would help them offer free payments via credit card to their Radpad card holders (a special benefit). I have only been using their service a couple months but it is great (detailed with updates on your payments and status). A sign up bonus they could offer is something like a $100 towards your first payment or a 10% back on your rewards at the end of the year, so it would make it similar to the old Freedom benefit, making it like a 3.3% cashback card that you would make your only rent/mortgage payment card. This would attract them business and be a new revenue stream for them to earn more customer loyalty.

Doctor of Credit (MilesWhip)

Simon Mall

The one co-branded credit card I wish existed is a Simon Mall Visa Signature credit card.

I chose Visa Signature because the Visa Signature programs offers a little bit better benefits than the World Elite MasterCard program.

The Simon Mall Visa Signature card would offer 5% cash back on all purchases at Simon Mall locations, both in-store and online. This would include purchases at retail shops within Simon Mall (for those of us who actually shop there). Although this could be problematic because each shop has it’s own merchant processor.

You’d get 3% cash back on the purchase of Simon Mall gift cards.

(I’d love 3% cash back but would also be happy with 1% cash back).

Sign-up Bonus: $250 sign-up bonus after spending $1,000 in the first 3 months. (realistic sign-up bonus vs dream sign-up bonus)

Spending Bonus:

1) Additional 1% cash back when you spend $8,000 a year at retail shops at Simon Mall locations.

So that this card would offer broader appeal and the fact that the average person spends less than $2,000 a year on clothes and just under $4,000 a year at the mall, spending $8,000 a year would mean doubling normal expenditures and provide a good return on investment for Simon Mall while rewarding the consumer.

2) Additional 1% cash back when you spend $75,000 a year on Simon Mall Gift cards.

While many of us will easily meet the spend in less than a week, I’m looking at a broader reach for the average consumer.

Automatic Discounts: Each quarter, most car rental companies offers special deals for discounts and bonus points/miles (I like using this site to find them), but these promotions are usually specific to a geographic region, rental duration, and/or car type. Co-branded cardholders could get access to a consistent, standardized discount (let’s say 10%) on every single rental, regardless of the location or length of the rental.

Fee waivers: Gift card fees waived after $75,000 in gift card purchases. (This way it’s worth it to them, but at the same time gives us an extra benefit.)

Annual Fee: $195 (gotta give them something for the benefit of being able to make six figures cash back a year)

Foreign Transaction Fee: None

Travelling Well For Less

SPG

Obviously, the higher the sign-up bonus, the better. Working within the structure of existing programs, SPG Starpoints come to mind immediately. These are quite valuable both for stays at SPG properties and thanks to the ability to convert them to a wide variety of airline programs while scoring 5,000 extra miles for every 20,000 points transferred. Unfortunately, it’s relatively difficult to earn Starpoints right now, since the SPG American Express only offers multiple points per dollar at SPG locations. An SPG card offering additional category bonuses, such as 2x on airfare, gas or at other retail locations, would be a very compelling option.

Points Away

Time

Of course the Milenomics Co-Branded Credit card would be at the top on my list! This would be a card unlike any other card. Instead of earning miles, or cash this Milenomics Credit card would instead pay you back in *Time.* Imagine earning a few seconds of time per $1 spent, free to use whenever you’d like. I’ve long argued that time is the ultimate non-renewable resource, and so I’d love a card which gave me more of it.

As impractical as this card might sound, I’m using it to illustrate a point: we spend plenty of time in addition to money in chasing points and miles. I’d love for us to be more conscious of this time we spend.

Milenomics

Top Tier Status

A really premium Hyatt or Marriott credit card with a higher annual fee but ability to earn top-tier status with spend, useful bonus categories (gas stations would be nice, a la United Business Explorer) or 1.5x earning everywhere a la United Club, and an annual free night at any property (perhaps excluding Ritz Carlton in the case of Marriott). Such a card might be worth a $300-400 annual fee.

Freequent Flyer

Universal Points Transfer

In an ideal world, we would have one card to rule them all – and in the darkness, bind them. Something I would love to see in a dream card is a points system that is universally transferrable among all different points currencies. In a way, this is achievable today through creative transfering, but too many points can fall through the cracks this way. Instead, an ideal situation would allow for points to be shifted easily – and directly – between one points system to any other point system of the cardholder’s wishes. Will this ever come to fruition? I doubt it, because of the various banking and affinity marketing arrangements…but it’s certainly nice to dream

Tagging Miles (Joe)

Walmart

I wish the Wal-Mart Mastercard were more compelling. It currently has a 1% credit back ($5 for $500) and a puny $25 signup bonus. I’d love to see maybe 2-3% back on Walmart purchases, or even 5% off purchases like Target.

The Deal Mommy

Final Thoughts

First of all a big thanks to all of the other bloggers that took time out of their day to answer these questions, I really appreciate everybody getting back to me with such well thought out responses. In case you didn’t already know, I’ve been holding out hope for an AirBnB co-branded card for awhile now (we both have good taste, Grant). As long as the card earns 5x points I’d be relatively happy because I spend so much through them every year.

I found all of these responses interesting, although RTC slipping in the little nugget that Chase doesn’t consider rental car partners “sexy enough” was particularly insightful. If you any company could have a co-branded credit card, who would it be and why? Let me know your responses in the comments. Who knows, maybe one of the card issuers is reading this blog looking for ideas.

P.S If you’re a blogger and your response isn’t included, please let me know it was not intentional. Also if you missed replying to me, feel free to send your response over now and I’ll add it.