Do you have a grown-up child studying in a different city or a family member managing expenses but without their own credit card? Add-on credit cards could be the perfect solution! Let’s explore their features and benefits.
What Is an Add-On Credit Card?
An add-on credit card is a supplementary card linked to the primary credit cardholder’s account.
- Credit Limit: Shared with the primary card. Combined spending (primary + add-on) cannot exceed this limit.
- Billing: All transactions appear on the primary cardholder’s statement.
Eligibility for Add-On Cards
- Issued to close family members like children, spouse, or parents.
- Minimum Age: Varies by bank; some issuers allow individuals as young as 18 to have an add-on card.
Why Consider an Add-On Credit Card?
1. Support for Dependents
Ideal for students or family members who can’t qualify for their own credit card. Helps them manage expenses with oversight.
2. Maximise Rewards
Pool expenses across multiple cards to earn more cashback, points, or other rewards.
3. Financial Flexibility
Gives non-earning family members access to credit for emergencies or everyday needs.
Key Advantages
1. Spend Monitoring & Control
- Primary cardholders can track spending and even set individual limits for add-on cards.
- Notifications for add-on card transactions help with budget management.
2. Same Rewards & Benefits
- Add-on cards usually offer the same perks (e.g., cashback, rewards) as the primary card.
3. No Separate Payment Hassle
- All payments are consolidated under the primary cardholder’s account.
Things to Note
- Responsibility: Only the primary cardholder is responsible for repayments.
- No Credit History for Add-On User: Since the account is not in their name, add-on users won’t build their own credit score.