What Are Supplementary Credit Cards and How Do They Work

Author

Reads 902

Minimalist mockup featuring a black card on a white plate against a neutral background, ideal for creative designs.
Credit: pexels.com, Minimalist mockup featuring a black card on a white plate against a neutral background, ideal for creative designs.

A supplementary credit card is a secondary credit card issued to a primary cardholder, often with a different credit limit or card features.

These cards are typically offered by banks and credit card companies as a way to expand the primary cardholder's credit capacity.

Supplementary credit cards often have their own separate credit limit, which can be lower or higher than the primary cardholder's credit limit.

They usually share the same account and payment terms as the primary card, but can have different rewards programs or benefits.

See what others are reading: How Often Can You Apply for Credit Cards

Benefits and Features

Supplementary credit cards offer a range of benefits and features that make them an attractive option for individuals and families.

One of the key benefits is that supplementary cardholders can enjoy many of the same benefits as the primary cardholder, including membership in rewards programs like Scene+. This means they can earn rewards on their purchases, which are then applied to the primary cardholder's account.

Here's an interesting read: Credit Cards with Gift Card Rewards

Credit: youtube.com, Feature & Benefits Review: Adding Supplementary Cardholders on UnionBank Credit Card

Supplementary cardholders can also make purchases and cash advances through the primary cardholder's account, with transactions consolidated on the primary account for easy tracking.

Here are some of the key benefits and features of supplementary credit cards:

Overall, supplementary credit cards can be a convenient and cost-effective way to manage multiple credit cards within a family, while also providing financial independence to dependant family members.

Features

Supplementary cardholders can enjoy many of the same benefits as the primary cardholder, including membership in the Scene+ Program.

Supplementary cardholders can earn rewards on their purchases, but the rewards will be applied to the primary cardholder's account.

One of the benefits of having a supplementary card is that transactions are consolidated on the primary account, making it easier to keep track of expenses.

Supplementary cardholders can make purchases and cash advances through the primary cardholder's account.

The primary cardholder can set a credit limit on the supplementary card, giving them full control over the account.

Credit: youtube.com, Understanding Benefits Vs Features (Do You Know The Difference?)

Here are some features of add-on credit cards:

The primary cardholder is responsible for all charges made by the supplementary cardholder, and will receive the monthly bill addressed to them.

Supplementary cardholders can enjoy the features offered by the credit card at no additional cost, but may not have complete control over the account.

Add-on cards can be useful for avoiding the need for multiple credit cards within a family, and can provide financial independence to dependant family members.

Sign Up Bonuses

Sign up bonuses can be a great perk for new credit card holders. You'll typically get a bonus for meeting a minimum spend requirement, but there's a catch.

Adding a joint credit card when you sign up for a new credit card won't get you double the sign up bonus. Even if you meet the minimum spend requirement with both cards, you'll only get one bonus.

The good news is that spending on a supplementary credit card counts towards your overall spending for the welcome bonus. This means you can meet the minimum spend requirement with both cards and still get the bonus.

Credit: youtube.com, Taking Advantage of Bank Account Signup Bonuses - Feat. Bank Account Bonus Central

Some credit card companies have experimented with offering a sign up bonus for supplementary cardholders, but this is rare. TD Bank recently offered a promo that required you to sign up for part of your welcome bonus, but it came with a fee.

American Express is one of the few companies that offers a bonus to supplementary cardholders, but only if you use a referral link.

Liability and Debt

As a supplementary credit cardholder, it's essential to understand your liability in case of debt. You won't be automatically responsible for paying the debt, but there are still some indirect consequences to consider.

The primary cardholder's bankruptcy can lead to account closure, leaving you without access to the credit line. This may not seem like a big deal, but it can have a significant impact on your financial flexibility.

Here are some key facts about liability and debt as a supplementary credit cardholder:

  • No Legal Responsibility: You will not be automatically responsible for paying the debt.
  • Account Closure: The credit card issuer will likely close the account, leaving you without access to the credit line.
  • Impact on Credit Score: Missed payments or defaults before bankruptcy can show up on your credit history, affecting your score.

It's also worth noting that the credit card debt may still show up on your credit report if the primary cardholder's bankruptcy leads to missed payments or defaults.

Liability for Debt

Credit: youtube.com, Liability vs Debt | What is a Debt | What is a Liability

As a supplementary cardholder, you may be wondering if you're responsible for the debt on the credit card account. Fortunately, you're not automatically on the hook for paying the debt, unless you're also a co-signer or have a specific agreement.

However, being a supplementary cardholder can still have some indirect consequences. The credit card issuer may close the account, leaving you without access to the credit line.

If the primary cardholder files for bankruptcy, the supplementary cardholder's credit score may still be affected. Missed payments or defaults before bankruptcy can show up on your credit history, affecting your score.

Here are the key facts to keep in mind:

  • No Legal Responsibility: You will not be automatically responsible for paying the debt.
  • Account Closure: The credit card issuer will likely close the account, leaving you without access to the credit line.
  • Impact on Credit Score: Missed payments or defaults before bankruptcy can show up on your credit history, affecting your score.

It's worth noting that being a supplementary cardholder is different from being a joint debtor. With joint debt, both parties are legally responsible for repayment, whereas supplementary cardholders are not.

Related reading: Amex Joint Account

Bankruptcy's Impact on Consumers

Filing for bankruptcy can have serious consequences for consumers, including loss of access to credit and potential damage to their credit score.

Credit: youtube.com, Consumer Credit and Debt: What's Bankruptcy?

If you're a supplementary cardholder, the primary cardholder's bankruptcy can lead to account closure, cutting off your access to the credit line.

This means you'll need to adjust any financial plans relying on the card, which can be a significant challenge.

Even if you didn't create the debt, the account's payment history could still hurt your credit score, making it harder to obtain credit in the future.

Here are some key effects of bankruptcy on consumers:

  • Account Closure: The credit card account will almost certainly be closed.
  • Credit Score Impact: The account's payment history could hurt your credit score.
  • Loss of Credit Access: Without access to the card, you'll need to adjust financial plans.

Will Bankruptcy Hurt You?

As a supplementary cardholder, you might be wondering if bankruptcy will hurt you. The answer is yes, it can. Bankruptcy can have a ripple effect on your credit score, even if you didn't create the debt.

If the primary cardholder's account had missed payments or defaults, that negative history might be reflected on your credit report as well. This can be a problem, especially if you're trying to establish a good credit history.

Credit: youtube.com, Will Bankruptcy Lead to Bad Debt? - CreditGuide360.com

You'll also lose access to the credit line when the account is closed. This can impact your financial plans, especially if you were relying on the card for purchases or cash advances.

Here are some potential consequences of bankruptcy on your credit:No Legal Responsibility: You will not be automatically responsible for paying the debt.Account Closure: The credit card issuer will likely close the account, leaving you without access to the credit line.Impact on Credit Score: Missed payments or defaults before bankruptcy can show up on your credit history, affecting your score.

These consequences can be frustrating, but it's essential to understand your rights and responsibilities as a supplementary cardholder.

Expand your knowledge: Access Credit Cards

Documents Required

To apply for an add-on credit card, you'll need to gather some documents. A duly filled-in add-on credit card application form is the first step.

The credit card provider will also need to verify your identity, so be prepared to provide your KYC documents. This is a standard requirement for most providers.

If this caught your attention, see: Can I Add More Money to My Secured Credit Card

Red flowers and stems arranged around a blank white card on a grey background, suitable for messages or invitations.
Credit: pexels.com, Red flowers and stems arranged around a blank white card on a grey background, suitable for messages or invitations.

A PAN card or Form-60 is also necessary for the application process. This is a common requirement, but check with your provider to confirm.

You'll also need to submit a passport size photo of yourself. This is a standard requirement for most credit card applications.

Here's a list of the common documents required for an add-on credit card application:

  1. A duly filled-in add-on credit card application form.
  2. KYC documents of add-on card applicant
  3. PAN card or Form-60
  4. A passport size photo of the add-on card applicant

Annual Fees and Options

The BMO World Elite Mastercard usually has a promo where the annual fee of $150 is waived for the first year, but the annual fee for a supplementary card is $50.

If you add an authorized user credit card to the American Express Gold Rewards Card, you can get one supplementary card for free, which normally costs $50.

The annual fee for a supplementary card is usually lower than the fee that the primary cardholder pays, but you need to consider any promotions available.

You can get an extra 5,000 American Express Membership Rewards points for free when adding a supplementary card using a referral link to apply for the card.

Impact on Credit Score

Credit: youtube.com, Can adding Authorized Users to my credit card hurt my credit score?

Adding supplementary credit cards can have a surprising impact on your credit score. The primary cardholder typically sees a decrease in their credit score of 10 points.

If you're the supplementary cardholder, there's no effect on your credit score at the time of application. A hard check is performed whenever the primary cardholder applies for new credit.

The primary cardholder should think carefully before adding supplementary credit cards, especially if it's a friend who has problems getting their own credit card.

Who Can Get and How Many

You can get supplementary credit cards from major credit card issuers, but the number of add-on cards permitted varies.

HDFC Bank allows up to 3 add-on cards, while SBI Cards and IndusInd Bank permit up to 2 add-on cards. Axis Bank and HSBC Bank also allow up to 3 and 3 add-on cards respectively.

Here's a quick rundown of the number of add-on cards permitted by each bank:

Submit Application Form

A Woman Paying Using Her Credit Card while Talking to the Vendor Holding a Payment Terminal
Credit: pexels.com, A Woman Paying Using Her Credit Card while Talking to the Vendor Holding a Payment Terminal

To submit your application form, you can visit your bank's branch and get the form in person. This is a straightforward process.

You can also download the application form from your bank's website for added convenience. Just head to their website and look for the download section.

Once you have the form, fill in the required details carefully and accurately. This will ensure that your application is processed smoothly.

Get the form signed by the applicants, as this is a necessary step in the application process. Make sure all signatures are genuine and valid.

Affix your photographs, if required, to complete the form. This is usually a standard requirement for most applications.

Attach self-attested KYC documents to the form, as these are essential for verification purposes. This will help your bank to verify your identity and other details.

Finally, send the completed form through post or hand it over at the nearest bank branch. This will ensure that your application is received and processed by the bank.

For more insights, see: Does a Prepaid Card Build Credit

Who Can Attend?

A close-up of a man holding a wallet containing credit cards and an ID inside a room.
Credit: pexels.com, A close-up of a man holding a wallet containing credit cards and an ID inside a room.

Immediate family members of the primary cardholder can apply for an add-on card. They must be above 18 years of age.

The list of eligible members includes:

  1. Spouse
  2. Children
  3. Siblings
  4. Parents
  5. Parents-in-law
  6. Sister/Brother-in-law
  7. Daughter/Son-in-law

Some issuers might have exceptions, so it's best to check with your provider for exact information.

How Many Can Be Availed?

So, you're wondering how many add-on credit cards you can get? The number of supplementary credit cards you can have varies depending on the bank, but most major credit card issuers allow you to have between 2 to 4 add-on cards.

HDFC Bank, for instance, allows up to 3 add-on cards, while SBI Cards and IndusInd Bank limit it to 2. On the other hand, Axis Bank and HSBC Bank let you have up to 4 and 3 add-on cards, respectively.

Here's a quick rundown of the number of add-on cards permitted by each major credit card issuer:

Most banks also offer free lifetime annual fees for add-on cards, which is a great perk!

Understanding Add-On Cards

Credit: youtube.com, Do Add-on Cards Affect Credit Score? | Supplementary Credit Cards Affect Credit Score | Credit Score

Add-on cards are essentially identical to the primary credit card, offering the same features.

Most credit card issuers provide 2-3 add-on cards for free, meaning no annual or joining fee.

These cards can be availed by immediate family members of the primary cardholder, making them a convenient option for family members.

Some add-on cards do come with an annual fee, but it's typically much lower than the primary credit card's annual fee.

Add Cardholders Easily

Adding cardholders to your credit card account is a straightforward process. You'll need your existing account number and the supplementary cardholder's details, including their name, address, phone number, and date of birth.

Only the primary cardholder or co-borrower can add supplementary cardholders to their account, so make sure you have the necessary permissions.

To add a supplementary cardholder, you'll need to provide their name, address, phone number, and date of birth. This information is required, so have it ready before you start the process.

Credit: youtube.com, What are the benefits of Add-on Credit Card? | Explainer | Money9 English

You can add a friend or family member as a supplementary cardholder to your credit card account. Just remember to get their consent to provide their personal details.

Here are the required details to add a supplementary cardholder:

  • Your existing Scotiabank Credit Card Account Number
  • The supplementary cardholder's name, address, phone number, and date of birth

Having a supplementary cardholder can be beneficial, as they'll enjoy many of the same benefits as you, including membership in the Scene+ Program.

What Is an Add-On?

An add-on card is essentially an extra credit card that's linked to your primary credit card account. This type of card can be issued to immediate family members, such as spouses, children, or parents.

The benefits of having an add-on card are numerous. For instance, it allows minors below the age of 18 to have a credit card, which can be a huge advantage for families with teenage children.

Add-on cardholders can enjoy the same perks and advantages as the primary cardholder, including membership in the Scene+ Program and earning rewards on everyday purchases. These rewards are then applied to the primary cardholder's account.

Credit: youtube.com, What is Add on Credit Card | Add on Credit Card Benefits | Add on Credit Card Kya Hota Hai?

One of the main advantages of add-on cards is that they can be used to avoid the need for multiple credit cards within the family, which can bring down overall credit card maintenance costs. This can be a huge cost savings for families with multiple credit card users.

In most cases, credit card issuers provide a limited number of add-on cards for free, typically 2-3, which means no annual fee or joining fee will be charged. However, some cards may come with a cost, such as an annual fee that's usually much lower than the primary credit card's annual fee.

Here are some of the key benefits of add-on cards:

  1. Avoids the need for multiple credit cards within the family
  2. Enables minors to have a credit card
  3. Add-on cardholders can enjoy the features offered by the credit card at no additional cost
  4. Primary cardholders can set the credit limit on all the add-on cards
  5. Keeping a track on the expenses of your dependants becomes much easier
  6. Provides financial independence to dependant family members
  7. Enables add-on cardholders to enjoy the offers on the credit card

By having an add-on card, you can simplify record keeping and make it easier to track expenses. This can be especially helpful for families with multiple credit card users.

Should You Get One?

Getting a supplementary credit card can be a great idea, but it's not a decision to be taken lightly.

Credit: youtube.com, Kevin O'Leary: How Many Credit Cards Should You Have?

You should consider getting a joint credit card if you want to pool your points or give someone access to credit.

However, it's essential to check if there's an annual fee first. If getting a joint credit card is free, then it doesn't hurt.

The supplementary user doesn't build their credit score with a joint credit card, so keep that in mind.

Some credit cards share benefits, but often people are more interested in the earn rate. If you can have multiple people in your family pooling their points into one account, it definitely benefits you.

For another approach, see: Opening a Joint Secured Credit Card

Robin Little

Senior Writer

Robin Little is a seasoned writer with a keen eye for detail and a passion for storytelling. With a strong background in research and analysis, Robin has honed their craft to deliver engaging and informative content on a wide range of topics. Their expertise in the realm of financial markets has earned them a reputation as a trusted voice in the industry.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.