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What is an Add-on Credit Card?
Posted on Friday, April 21st, 2023 | By Indusind Bank
In today’s fast-paced world, credit cards have become a necessity for most people. They provide easy access to credit and offer several benefits like rewards, cashback, discounts, and more. However, not everyone is eligible for a credit card, and sometimes it may not be convenient to have multiple credit cards. That’s where add-on credit cards come in.
An add-on credit card is an additional credit card that is issued under the primary cardholder’s account. It is also known as a supplementary card or a secondary card. The primary cardholder can apply for an add-on credit card for their family members who are above the age of 18 years. The add-on credit card has the same credit limit as the primary card, and the transactions made on the add-on card are billed to the primary cardholder’s account. The primary cardholder can set a limit on the add-on card, and the cardholder can monitor the spending on the add-on card through their credit card statement.
The primary cardholder is responsible for paying the bill for both the primary card and the add-on card. The primary cardholder also has the authority to cancel the add-on card if necessary. The add-on cardholder does not have any liability or responsibility for the repayment of the amount spent on the add-on card.
Benefits of an Add-on Credit Card
- Convenience: An add-on credit card provides a convenient way for family members to access credit without having to apply for a separate credit card.
- Rewards: Add-on cardholders can also enjoy the same rewards, cashback, or discounts offered on the primary card. This means that the add-on cardholder can earn rewards for their spending without having to pay the annual fee.
- Emergency Use: An add-on credit card can come in handy during an emergency. If the primary cardholder is not available, the add-on card can be used to make necessary payments.
Things to consider before applying for an Add-on Credit Card
- Credit Utilization: The primary cardholder must monitor their credit utilization ratio, which is the amount of credit used compared to the credit limit. Adding an add-on card may increase the credit utilization ratio and affect the credit score negatively if the credit utilization ratio is high.
- Trust: The primary cardholder must trust the add-on cardholder and ensure that they use the credit card responsibly. If the add-on cardholder overspends or defaults on payments, it can negatively affect the primary cardholder’s credit score.
- Fees: Some banks may charge a fee for an add-on credit card. The primary cardholder must check with their bank about any additional fees or charges associated with an add-on credit card.
Conclusion
In conclusion, an add-on credit card is an additional credit card issued under the primary cardholder’s account. It provides a convenient way for family members to access credit without having to apply for a separate credit card. However, the primary cardholder must consider several factors before applying for an add-on credit card, such as credit utilization, trust, fees, and limitations. Overall, if used responsibly, an add-on credit card can provide several benefits to both the primary and add-on cardholders.
If you’re looking for an add-on credit card that encompasses all the benefits and rewards to match your lifestyle, check our offerings and you’d definitely find your ideal pick. IndusInd Bank offers a range of lifetime free credit cards that enable you to enjoy exquisite privileges and help save more with reward points that never expire.
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.
