Affinity cards are specialized credit cards offered by companies with logos of two organizations, one of which is the lender or bank, and the other benefits financially. They offer discounts and benefits to borrowers and can benefit universities and airlines. Prospective borrowers should read the fine print to determine if they are worth carrying.
An affinity card is a specialized type of credit card offered by many companies. Usually these cards represent a business agreement between two organizations. One of these organizations is the lender or bank, while the other offers a logo and usually benefits financially from it. Some borrowers can also reap the benefits of affinity cards because many of them offer special purchase or cashback discounts.
It is easy to recognize an affinity card. It usually has the logo of major credit card companies like Visa or MasterCard, but it also has the logo of the second organization involved. There are airlines, universities, gas, sports team cards and many other types. An airline affinity card may offer some discounts or refunds on airline ticket purchases, and the airline may receive a small percentage of all purchases the person using the card makes. Also, the fact that a logo is on the card can inspire people to do more business with that company than they normally would.
Affinity cards with the university logo are often marketed to college students. These cards are not just a talking point when a person carries and uses them. They can directly benefit, in a small part, the university that offers the card. Another thing a college logo affinity card can do is offer discounts for college services or events. This would encourage alumni to maintain interest in the college even after graduation and continue to support it by attending special events the college holds, such as concerts or games.
It is a point of interest for many consumers to determine whether it is beneficial to carry an affinity card. In some cases, these cards can be great deals and represent opportunities to save money on things a person would normally buy anyway. Some credit cards with a double logo will have excellent interest rates and may have attractive incentives. Do affinity cards represent the lowest interest rates offered? It really depends on each card.
As with any credit card offer, prospective borrowers should read all the fine print to determine whether an affinity card is worth carrying. Interest rates can sometimes be higher, but higher rates can be offset by frequent discounts or a feeling that the extra fee is somehow benefiting an organization that a person supports. Loading cards with higher interest rates makes little sense if a person rarely takes advantage of any discount offers and is not interested in cashing in on the card’s co-sponsor.
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