A credit card simplifies shopping by giving immediate access to funds, but not everyone may qualify for one due to reasons like lack of income or credit history. In such cases, add-on credit cards can be a great alternative. Here’s a breakdown:
What Is an Add-On Credit Card?
An add-on (or supplementary) credit card is an additional card linked to a primary credit card. The primary cardholder can issue this card to family members, friends, or business partners, provided they’re above 18. Add-on cards share the same benefits and spending limit as the primary card.
Who Can Get an Add-On Card?
Add-on cards are perfect for those without a regular income, such as spouses, children, parents, or even friends and business partners. Most issuers allow 2-5 add-on cards, though eligibility rules can vary.
How Does an Add-On Credit Card Work?
The add-on card operates based on the primary cardholder’s credit history. It shares the same features like rewards and credit limits. All transactions are billed to the primary card account, and the primary cardholder can monitor usage.
What Are the Charges?
Add-on cards may have fees ranging from ₹125 to ₹1000 depending on the card and issuer, though some banks offer them for free or with lower annual fees than the primary card.
Impact on Credit Score
The primary cardholder is responsible for paying off add-on card dues. Delayed or missed payments can negatively affect their credit score, making it harder to secure credit in the future.
Add-on cards are a useful way to manage shared expenses, but they should be used carefully to avoid debt.