How add-on credit cards can be useful for your family

financialexpress.com:

If your track record is very clean, then most banks would like to offer you add-on credit cards with a higher credit limit and added features. An add-on card is like a supplementary or secondary card. These cards can be used by your spouse, children and even parents and siblings.

When you apply for a credit card, you must establish your eligibility, including your income and good credit score, and provide a series of documents. Add-on credit cards bypass these requirements as banks already have your primary credit card details. Since add-on cards are issued against the primary credit card, all the transactions done through add-ons are billed to the primary credit card holder and he/she must settle the bill.

Adhil Shetty, CEO, Bankbazaar.com, says, “Add-on cards can be convenient for family members who need a payment method for everyday expenses or emergencies without carrying cash.”

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Based on credit repayment history, lenders offer you add-on credit cards on your primary card. The primary card holder has the option of tracking the usage of add-on cards linked with his credit card. This ensures that the primary user is aware of the usage and is in a position to put checks and balances in case there is some irresponsible spending.

Shetty explains, “You must remember that the credit utilisation ratio, which is the balance compared to the credit limit, can affect your credit score. If the add-on cardholder uses a significant portion of the shared credit limit, it may impact your credit utilisation ratio negatively.”

An existing credit card holder can request for add-on cards either online or offline. One can go for internet banking and can put the add-on request in the