What is an Add-on Credit Card and How does it Work?

Posted on Thursday, February 1st, 2024 | By IndusInd Bank

Credit cards offer a world of convenience at your fingertips.

Need to buy a high-ticket item but can’t pay all at once? They let you split the cost.

Want to earn rewards while you shop? They offer points and cashback.

How about deals and discounts on your favourite items? Yes, they give you access to those as well. Ever thought about building a good credit score for future loans? Regular use and timely payment of credit card bills help in just that. Well, the benefits of credit cards are endless.

However, not everyone can enjoy these benefits. This is because to qualify for a credit card, you must first meet some requirements. So, what if someone does not meet these criteria but still wants to avail the benefits of credit cards? An add-on credit card plays an important role here.

What is an Add-On Credit Card Exactly?

An add-on card means a supplementary credit card issued under the primary cardholder’s account. It lets you share the credit limit and benefits of your card with your loved ones. They can be any family member, such as a spouse, child, or parent. 

Here’s How it Works

Each add-on card has its own card number and can be used independently. When someone uses it to buy things, these expenses get added to the primary cardholder’s account and are reflected on their bank statement.

Now, the catch is that the primary cardholder is the one who has to pay off the bills for both cards – their own and the add-on. In simple words, the person using the add-on credit card holds no liability or obligation to repay the amounts spent using this card. That’s the primary cardholder’s job. So, it is important to ensure that the add-on cardholder is a trustworthy individual only and that they use the card responsibly. 

Add-On Credit Card Benefits and Perks

Having an add-on credit card can be beneficial for you in many ways.

Access to Credit for Family

An add-on credit card gives those with limited or no credit history easy access to credit. Even if they are not eligible to apply for a credit card on their own, they can still use the supplementary one for daily expenses or in case of emergencies.

Collective Rewards, Individual Benefits

Purchases made on an add-on card accumulate rewards similar to those on the primary card. These rewards can be in the form of attractive cashback offers or discounts on top brands.

Simplified Expense Tracking

All expenses made on the add-on card appear on the primary cardholder’s statement. This centralises the tracking of family spending, making it easier to monitor, organise, and analyse where the money goes each month. As such, it’s a smart move to explore the best credit card deals and consider an add-on card for efficient financial management.

Customised Spending Limits

The main cardholder can set a specific limit for how much can be spent on each add-on card. This helps in managing the budget effectively and avoids the risk of spending too much.  

Lifesaver in Emergencies

An add-on credit card means a lot during emergencies. When the main cardholder isn’t around, a family member can use the add-on card for urgent payments. This ensures that financial needs are met without delay and that your loved ones always have support in critical situations.

Conclusion

Add-on credit cards are a valuable tool that simplifies finances within families while offering countless benefits to both primary and add-on cardholders. To get extra value-added features like customisable spending limits, impressive rewards, and robust security measures, you can choose an IndusInd Bank credit card. With a 100% digital process and instant approval, now is the perfect time to apply for your IndusInd Bank credit card and extend its advantages to your loved ones through an add-on card.

So, don’t wait anymore. Get an IndusInd Bank credit card today!

Apply Now.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.