What Are Floater Credit Cards?
Floater credit cards, also known as supplementary or add-on credit cards, share the credit limit with the primary card.
- Issued in the name of the primary cardholder or a family member (e.g., spouse).
- Often virtual cards, ideal for UPI and contactless payments.
- Shared credit and cash limits with the primary card (e.g., ₹10 lakh total limit shared).
How Do Floater Credit Cards Work?
- Issued without additional documentation, based on the primary card’s creditworthiness.
- Separate billing statements for the primary and floater cards, with distinct payment requirements.
- Reward points and benefits accrue separately and cannot be transferred between cards.
- Temporary limit enhancements on the primary card disqualify eligibility for floater cards.
- Address discrepancies must be resolved by matching the mailing address of both cards.
Will It Enhance Your Credit Limit?
Not automatically. Credit limit increases depend on:
- Timely bill payments on both primary and floater cards.
- Low credit utilization.
- Bank evaluations based on repayment history and income.
Who Needs a Floater Credit Card?
Floater cards are ideal for:
- Families with members in different locations for shared expenses.
- Frequent travelers needing a card for household purchases.
- Individuals leveraging virtual cards for UPI and contactless payments.
Why Consider Floater Credit Cards?
- Provides convenience for shared household or family expenses.
- Useful for digital transactions like UPI and online payments.
- Seamlessly integrates physical and virtual card benefits for diversified spending needs.
Floater cards offer flexibility and convenience while maintaining the benefits of your primary card.