Add-on Credit Card

If you’re wondering what is an add-on credit card, the answer is simple. These cards are additional cards the card provider issues against a primary credit card. Through it, you, as a primary cardholder, can extend the main card’s benefits and limit to the immediate family members. These cards are available only when the main cardholder requests it. The primary credit cardholder is entitled to a limited number of add-on cards, typically 2-3, for free. 

Generally, there is no joining fee for supplementary cards. There may be an annual fee, for each add-on card, which may be less than or equal to the primary credit card. The primary cardholder will have to pay for the transactions on the add-on card, which are generally consolidated with the primary card’s statement. 

Points to Remember:

• The primary cardholder can set the credit limit on the supplementary cards. It can be lower than or equal to the credit limit of the primary credit card
• Cash withdrawal limit may also be limited for the add-on credit cards by the credit card issuer or the primary cardholder
• The primary and supplementary card transactions are consolidated into a single statement
• Rewards and redemptions of the primary credit card and add-on cards may also be clubbed
• The main cardholder is responsible for all the dues of the add-on card and any payment delays can affect their credit score

How Add-on Credit Card Works

As mentioned, an add-on or supplementary card is an extension of the main card. So, it enables you, as a primary cardholder, to extend the limit and benefits of your card. As such, the add-on cardholder can utilise your credit limit even in your absence. Remember, the limit is joint and any activity on the add-on card affects your credit profile too. For instance, suppose your limit is ₹90,000 and you have requested a supplementary card, which also comes with the same limit. Now, you and the supplementary cardholder have a total limit of ₹90,000. 

If the add-on cardholder spends ₹15,000, you can only utilise up to the remaining balance of ₹75,000. Also, the supplementary cardholders will enjoy the same benefits in terms of cashback, rewards and bonuses. But this may vary depending on your issuer.

The issuer will give a consolidated statement of the add-on and primary cards, which you, as the main cardholder, will be responsible for paying. Given this, you must request an add-on card for a responsible individual, who has lower chances of hurting your creditworthiness.  

FAQs on Add-on Credit Cards

Does an add-on card improve your credit score?

These cards can help boost the supplementary cardholder’s credit score, provided they use it responsibly. In case they don’t and the main cardholder is unable to pay the bills, the primary cardholder’s score will decrease.

What are the benefits of add-on credit cards?

These cards come with the same benefits as that of a primary card, depending on the issuer. For instance, you can get:

• Cashback and rewards
• Online and offline transactions
• Bonuses
• Limit equal to that of the main card

What is the age limit for add-on credit cards?

This depends on the issuer, but generally, you need to be at least 18 years old to be eligible for a supplementary card.