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Pros and Cons of an Add- on Credit Card

Pros and Cons of an Add- on Credit Card

You enjoy a credit card and use the card judiciously. You’re apprehensive of the benefits and inflexibility that a credit card offers. You want that your home- maker partner and your council going kiddies should also enjoy similar inflexibility. still, it isn’t easy to get a credit card unless you’re earning. How do you extend benefits of a credit card tonon-earning family members? Well, an add- on credit card can help in similar cases.

What Is an Add- on Credit Card?

An add- on credit card is issued to a family member grounded on your( primary card holder’s) creditworthiness. The bank doesn’t consider how important or whether the family member earns or not. The add- on cards have separate credit card Legs and the card holder gets OTPs for online payments on their mobile phones.

Who Can Apply for an Add- on Credit Card?

You( the primary card holder) must make the operation. You can apply for an add- on supplementary for partner, parents, children and siblings but the eligible relationship can vary across banks. The add- on card holder must be at least 18 times old.

What Is the Credit Limit for similar Cards?

The credit limit for all the add- on cards is contained within the credit limit of the primary card. therefore, if the credit limit for the primary card is Rs 1 lacs and you have 2 add- on credit cards for your partner and son, the accretive credit limit for the 3 cards( 1 primary and 2 add- on cards) remains Rs 1 lac. The total outstanding across the 3 cards can not exceed Rs 1 lac. Your bank may allow you to set- upsub-limits for add- on credit cards. This can help help overspending and abuse.

Any Periodic Charges on the Add- on Credit Card?

There’s no regulation around this. fully depends on your bank. generally, there’s no redundant periodic charge for the add- on credit card.

How numerous Add- on Cards Can I Have?

Again, depends on your bank. generally, 2- 5 add- on cards are allowed.

Do You Get Separate Statements for Add- on Credit Cards?

No, you do n’t. You’re the primary card holder and are responsible for all the payments. The spends on the primary cards and the add- on cards will be consolidated into a single statement and posted to you.

How Does an Add- on Credit Card Help?

originally, an add- on card gives a credit option to a family member who else doesn’t hold a credit card. This is empowering. While there’s need to be conservative while swiping the credit card or using it online, an add- on credit card provides the family members freedom to spend further than the cash they’re carrying in their holdalls . And I’m sure you can suppose of numerous cases where this can be useful.

You know it’s easy to manage your charges if you can track those charges duly. Tracking is easier if the charges can be consolidated in a single statement. And that’s where an add- on credit card can be veritably useful. How?
Well, you wo n’t be the one always making payment for the ménage charges. Your partner or a family member may have to spendtoo.However, your charges get resolve over 2- 3 modes of payment, which can occasionally be delicate to track, If they use cash or swipe a disbenefitcard.However, he she can swipe the add- on credit card or make an online purchase using the add- on card, If the partner or a family member has a supplementary credit card. And everything gets into a single statement.
Thirdly, you get price points cashbacks for using credit cards. thus, if your partner/ kiddies use credit card rather of cash, similar prices will increase sprucely. While you can question the value of price points and cashbacks, it’s still better than using cash.

Fourthly, while the add- on card provides freedom to the family members, it also provides you a way to track their charges, especially in case of council going kiddies.
Incipiently, the banks may consider the add- on cards independently for colorful abatements or cashback offers. So, if the maximum reduction per card is Rs 2,000 during a gleeful trade, you can resolve your purchases across the primary and add- on cards to get further reduction. So, if you have 1 add- on credit card, you can earn Rs 4,000 in reduction( Rs 2,000 X 2).

What Are the Problems with the Add- on Credit Card?

You may be veritably conservative with your credit cards, where and how to use the cards safely. Not everyone in the family may have a analogous position of mindfulness. Their ignorance or recklessness can land you in trouble. While there are mechanisms through which you can limit the liability in case of fraud, similar safeguards bear that you report fraudulent deals to the bank on time.
also, if the family member is reckless with the credit card, the credit card bill can shoot up. Basically, you( and the family) end up spending further than you typically would. This isn’t a good script.
And if you ca n’t repay on time, not only would you have to dodge high costs of credit card debt, but your credit score will also suffer.
thus, be judicious about who you extend the installation of an add- on credit too. To help overspending or abuse on the add- on card, set upsub-limits for operation on the card.

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