While the term credit cards are known even by the youngest in the family. Add-on credit cards are the least known. Many credit card users themselves are not aware of an add-on credit card. Even, after looking at their spouse, parents or children struggling hard to get one credit card.
Well, to those who are coming across the term add-on credit card for the first time, here is what it is and the features and benefits that come along.
An add-on credit card is a replica of a primary credit card
Also called supplementary credit card, an add-on credit card is an additional credit card offered on a primary credit card. The card will carry most of the benefits and features available on a primary credit card. Credit cardholders who wish to avail an add-on card should apply for the credit card using a separate application. A maximum of 3-4 add-on cards can be applied against a primary credit card subject to the bank’s terms and conditions.
The purpose of add-on credit card
I already have a credit card, why should apply for another credit card with almost similar benefits? Well, your doubt is legitimate. The primary purpose of an add-on credit card is to share the benefits of the primary card with the kith and kin of the cardholder. Instead of applying for a new credit card, the family members of the primary cardholder can share the card and its benefits.
Who are eligible for an add-on card?
Even though an add-on card can be applied against a primary credit card, the cardholder can apply it only for his/her spouse, major children, parents or siblings who are above 18 years of age. Friends and extended family members are not eligible for an add-on credit card.
Credit limit and cash limit for add-on credit cards
Now comes the interesting part. How much credit limit and cash limit is allowed on an add-on credit card? Even before knowing how much, let’s be aware that the credit limit and cash limit of an add-on credit card is part of the total credit limit of a primary credit card but not anything added to it. Hence, the credit limit on a primary credit card will be shared for add-on credit cards.
The percentage of credit limit allowed for add-on credit cards typically varies from card to card and from bank to bank. While some banks allow 100% of the credit limit of the primary credit card to add-on card, others set a cap of 30%-40%.
Some banks also provide an option for the primary cardholders to control the credit limit on an add-on credit card. In such cases, parents can choose the limit sufficient for their children. The limits can be enhanced as well decreased at the discretion of primary cardholder.
Add-on card-holders also earn reward points
Not just the primary card-holders, add-on credit card users can also earn while they spend using the card. The accrued reward points will be added to the primary cardholder’s account and can be redeemed along with the reward points earned on the primary credit card.
Primary cardholder is responsible for an add-on credit card
Though the add-on card is provided for the peruse of the primary cardholder’s family members. The usage of the card, outstanding due on the card and other charges should be credited to the primary account and hence should be borne by the primary user.
Benefits of availing an add-on credit card
● The application process for the credit card is simple
● Most banks offer add-on card at free of cost without any annual fee
● No separate statement will be generated for add-on cards. Though a consolidated statement will be sent to the primary cardholder
● Primary cardholder will receive all the communication regarding add-on credit card.