Add-On Credit Cards

Credit cards make purchases and payments simple. And, they also help us access some attractive rewards, deals, and offers. Everybody seems to want one of these days. But, getting a credit card can be tricky. This is where an add-on, or additional credit cards can come in handy. They are issued against a primary credit card. Let’s say you have a credit card and would like for your son, spouse, or parents to also enjoy the benefits of the card. You can apply for an add-on credit card and the card issuer will send over a supplementary card that can be used by your loved ones. What’s more, many issuers offer add-on cards at no extra charge!

Add-on credit cards are quite similar to the primary card in the way they work. The rewards, offers, and cashback available for purchases on the primary card will usually be applicable to transactions made using the add-on card. Here are some points to keep in mind while using a supplementary card: 

• The credit limit will likely be spread across both the primary and secondary card(s). You may get the option to choose the credit limit for the add-on card. 

• You will be able to view transactions made on the add-on card on your banking app/website or credit card statement. 

• Add-on cards can affect your credit score. So, if you default on any payments related to the add-on card or if your total credit utilisation ratio is high, your credit score may fall.   

Different credit card issuers have different policies for add-on cards, so it’s best to check with your issuer before getting an add-on card. 

Here are some of the features and benefits of add-on cards:

• Primary and supplementary cards come with a shared credit limit. 

• In most cases, transactions made with add-on cards earn rewards and cashback at the same rate as the primary card. 

• Many card issuers extend lounge access to supplementary cardholders as well. 

• The membership fees for add-on cards are usually zero. 

• A consolidated credit card statement is generated at the end of each billing cycle. This statement makes it easy to track and manage finances. 

• Primary cardholders can limit and monitor spending on add-on credit cards. 

An add-on card is an easy and convenient way to make easy payments. But, they also come with a few caveats. Keeping the following points in mind will help you have a pleasant experience with add-on cards: 

• Though the add-on card is a separate card, the primary cardholder will still have complete access to the purchases made on this card. Many issuers will also allow the primary cardholder to manage the credit limit and put a cap on the value of transactions. 

• The primary cardholder is responsible for the add-on card. This means that in case the dues on the add-on card is defaulted, their credit score is likely to fall. On that note, the primary cardholder is also liable to pay any membership fees, interest and penalty charges accrued on the add-on card. 

• The add-on card is not a credit builder card. This means that the add-on cardholder’s credit score will not improve even if they make diligent repayments on this card. 

Here’s the number of add-on credit cards allowed by leading credit card issuers in India: 

Applying for an add-on credit card is simple. You can apply for them both online and offline. Here’s how you can go about applying for an add-on credit card: 

1. Online Method 

• Step 1: Log in to your credit card issuer’s netbanking account

• Step 2: Click on ‘Add-on Credit Card’ under ‘Credit Cards’ 

• Step 3: Fill in the form and submit it with supporting documents 

• Step 4: Once it’s approved, your card will be sent to your postal address in a few days

2. Offline Method 

You can apply for an add-on credit card offline by visiting the nearest card issuer office branch. Approach a representative and tell them that you’d like to apply for an add-on card. They may ask you to fill a supplementary card application form and submit it, along with some documentation. Once the application is approved, they will send you the add-on card via mail.

The list of documents that you’re required to submit to get an add-on credit card may vary depending on the card issuer. That said, here’s a quick look at a few of the documents that banks may ask you to submit. 

• PAN card of the add-on card applicant

• A filled and signed application form for add-on credit card 

• Identity proof of the add-on applicant - Aadhaar, driving licence, passport or student ID

• Address proof of the add-on applicant 

• A passport size photograph of the add-on applicant