Floater Credit Cards: What They Are and How They Work

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.