Credit cards make purchases and payments simple. They also help us access some attractive rewards, deals, and offers. But, getting a credit card can be tricky. This is where an add-on or additional credit card 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. Discover the nuances of add-on credit cards to optimise shared financial management and elevate your credit experience.
Add-on credit cards are quite similar to the primary card in the way they work.
Here are some points to note:
Credit limits are shared between primary and additional cards. You may choose the limit for the add-on card
You can monitor add-on card transactions on your app or credit card statement
Be cautious as add-on cards impact your credit score. Defaults or high credit utilisation can lower your score
Policies vary among issuers, so it is best to check with yours before obtaining an add-on card
Keeping the following points in mind will help you have a pleasant experience with add-on cards:
Despite being separate, the primary cardholder has full access to add-on card transactions. Management of credit limit and transaction value cap is often granted to the primary cardholder.
The primary cardholder is accountable for the add-on card. Defaulting on add-on card dues affects the primary cardholder's credit score. All associated fees and charges fall under the primary cardholder's responsibility.
Repayments on the add-on card don't contribute to the add-on cardholder's credit score improvement.
The maximum number of add-on credit cards that you can get with your credit card will depend on your credit card type and the issuer’s policies. Generally, you can get 3 to 5 add-on cards per credit card.
Yes, each card will have its own PIN.
The add-on card cancellation process will vary from one card issuer to another. So, it’s best to get in touch with your card provider on how you can go about cancelling your add-on card. On that note, it’s worth keeping in mind that when you close or cancel your primary card, the add-on card will most likely be cancelled too.
The turnaround time for add-on cards will generally vary from one issue to another. But, you should get it within a week or two. Check with your card issuer to get an exact idea about timelines.
An add-on credit card can help you enjoy the benefits of a credit card without going through the hassle of getting a brand-new card. It’s also a great way to manage and track your and your families’ expenses.
You can apply for it through your net banking account or by visiting the bank.
Closing or cancelling your add-on credit card is quite easy. Reach out to your card issuer and let them know that you’d like to cancel your add-on card. They will guide you through the entire process.
Add-on credit cards are linked to the primary credit card and hence, any activity registered on the add-on card will only affect the primary cardholder’s credit score.
The number of add-on cards that you can get is dependent on your credit card type and the issuer’s policies.