The disadvantages of co-branded cards are limited use, high annual fees and high threshold for reward redemption.

The restricted scope of use of co-branded credit cards will cause inconvenience to users’ consumption habits. Since co-branded credit cards can usually only enjoy benefits and rewards at specific institutions or designated merchants, this restriction cannot meet the needs of users if they often spend money elsewhere. This means that users cannot take full advantage of the offers and benefits offered by co-branded cards. Some co-branded credit cards charge higher annual fees, especially for high-end brands or travel-type co-branded credit cards, which tend to have more expensive annual fees. This will increase the burden on users and require users to weigh whether it is worth paying a high annual fee to enjoy the privileges and benefits of a co-branded card. Another problem is the high threshold for reward redemption. While co-branded credit cards offer a wealth of rewards programs and benefits, sometimes it’s not easy to reach the point threshold required for redemption. This requires users to spend longer and consume more to get actual value. Users need to carefully evaluate their spending power and needs to ensure that they can redeem meaningful rewards.