An Add-on Credit card will act as a secondary or supplementary credit card for your family. These cards can be used by any family member like your spouse, children, and even your siblings.
By Crox Times Desk: If your track record is clean, then most banks would like to offer you add-on credit cards with a higher credit limit and extra lucrative features. An add-on credit card will act as a supplementary or secondary card. These cards can be used by any family member such as your spouse, children, and even your siblings.
When you are applying for a credit card you need to define your eligibility such as your income, and good credit score, and provide a series of documents. Since these add-on credit cards are issued against the primary ones so all the transactions done on add-on credit cards are billed to the primary credit card holder and he/she needs to settle the bill.
Working of Add-on Credit Card
Based on your repayment history, the credit card issuer will reach out to you for an add-on credit card. The primary credit card holder gets the option of tracking the usage of the add-on card since it is linked with the primary one only. This lets the primary user be aware of all the transactions that are taking place using the add-on credit cards.
And the most important thing, you must remember the utilization ratio which is the balance compared to the credit limit, since it can affect your credit score. If the add-on credit user adds an amount exceeding that balance, then your credit score will be impacted negatively.
How to Apply?
An existing credit card user can request an add-on credit card both online as well as offline. In the case of online, you can go for internet banking and can put the request for add-on request in the credit card section. For more convivence, you can do it using the bank’s mobile application as well. For all those, who are not tech-savvy, they can visit the nearest branch to apply the same.
Generally, there are some fees that you need to pay for the add-on credit cards. The fees generally range between INR 100 and INR 1000 depending upon the card you want to apply and the issuing authority as well. However, to lure customers banks are now offering these cards without any charges.
Perks of Add-on credit cards
You must be wondering what be benefits of Add-on Credit cards since they are offer fewer limits than the primary ones. But sometimes you can enjoy exclusive reward points and discounts.
Add-on credit cards can be really helpful if your family’s spending goes around different places. However, the primary cardholders should keep an eye on the transactions and make sure there is overspending since it affects your pocket and your credit score as well.