The practice of credit cards has become common in the current era. Often people resort to credit cards for big expenses. An ‘add-on credit card’ concept is also present in the credit card segment. Add-on credit cards are also called supplementary or secondary cards. Today in this report we are going to give you some information about these…
Add-on credit cards are issued under primary/original credit cards. Meaning more than one credit card is issued on the same account. Shopping with both types of cards is paid from the same account. Add-on credit card can be taken for family members such as wife, children above 18 years of age or parents. This is useful for students who are staying away from their parents, as well as for those who cannot keep their card.
Up to 5 add-on cards can be acquired
Add-on card facility is offered on most premium credit cards. Depending on the rules of the issuing bank, 1 to 5 add-on credit cards can be acquired. Most of the features and benefits of an add-on card are usually similar to the primary card. Most add-on cards have the same credit limit as the primary credit card, but according to certain bank rules, the credit limit of the supplementary card may be lower than the primary. If there is more than one add-on card, the total credit limit of the primary card is divided between the primary and the add-on card.
With these add-on cards, you can withdraw cash from the ATM as much as the credit limit. The record of all transactions of an add-on card remains in the primary card account. If you give a supplementary card to someone, then you can keep a complete record of the transaction through that card. Terms and conditions related to add-on credit cards vary from bank to bank.
Usually, add-on cards come for free, but depending on your bank’s rules, some charges may apply to them. These charges may vary from card to card. In some cases a limited number of add-on cards remain free, a charge is payable on the card above that number.
Delay in payment of dues will be expensive
Since the dues of the add-on cards have to be paid by the primary card holder, if there is a delay in payment of the dues of the add-on cards, it is included in the primary cardholder’s CIBIL report and affects the credit score.
Benefits of Add-on Credit Card
- Most credit cards allow the customer to carry out various transactions such as shopping in India and abroad. Card holders also get the same benefits through add-on credit cards.
- Both online and offline purchases can be done through an add-on credit card.
- Whenever you use a credit card, you get reward or bonus points. Reward points are also available in all supplementary cards.
Primary card holders should keep these things in mind
– The expenses incurred on the add-on credit card are shown in the account of the primary credit card holder and the bills have to be paid to them as well.
In case of non-payment of dues, the primary cardholder also has to pay the penalty for wrong payment of interest payment or add-on credit card.
– Credit card of the primary cardholder will be affected if the add-on card is used incorrectly.