Things to know about Add-on Credit cards

May 21, 2022 Finance Talk Valli Sarvani No comments

Add-on credit cards are supplement cards, which are issued to a family member of a primary cardholder. It is issued under a primary card. The number of add-on-cards varies with each bank, ranging from 1 to 5 cards. However, some banks may charge a fee beyond a certain number of add-on-cards.

Here are some important things to know about an add-on-credit card:

Add-on credit cards are linked to the primary card. They are suited for non-working family members of primary cardholders.

The credit limit for an add-on card is either same or lower than the primary card. The total credit limit will be divided among primary and add-on cards. However, the sub-limit of credit varies with each add-on card. These limits are also applicable to ATM withdrawals.

The rewards, cashbacks, bonus features etc., are all similar to that of the primary card. Though some benefits are the same for both primary cardholders and add-on cardholders, certain premium benefits are offered only to the former.

Primary cardholders can track transactions of all add-on cards in their account statement as they are reflected in it.

As these cards are linked with the primary cards, failing to pay bills by the due date will impact the credit score of primary cardholders. Hence, they must make bill payments for all these cards on time.

If these cards are misused by the users, the penalty or interest has to be paid by primary cardholders. Hence, it is their responsibility to make sure that they are not misused. Also, the bill payment should be done within the due date.

Primary cardholders should educate add-on cardholders about the consequences of misuse of the card, delay in payments, withdrawal of cash from ATMs and any other things that could affect the credit score adversely.

If these cards are used properly, students and other family members using them can learn to spend money responsibly.

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