The trend these days is to spend now and pay later. Loans and Credit Cards give us that flexibility where you can buy or get things immediately without having to pay for them outright or in full cash. Credit Cards in particular let us enjoy several benefits. And if you’d like to extent these benefits to your family, you can get a supplementary Credit Card or an add-on card to your existing Credit Card.
Basically, a supplementary Credit Card is an additional Credit Card that is issued under your original or primary card. The card can be issued to family members, parents, spouse or children above 18 years of age, depending on the terms and conditions attached to the card. There is a limit on the number on the supplementary Credit Cards that can be issued and this differs from bank to bank.
Additional Reading: Here’s Why an Additional Credit Card Could be a Great Idea
Benefits of Supplementary Credit Cards
A Credit Card and a supplementary Credit Card will nearly have the same features but this may change from bank to bank. Here are some of the benefits –
- Usage – Most Credit Cards can be used in India and abroad, and supplementary Credit Cards offer you the same benefits. If you are a holder of a supplementary Credit Card, you can shop online as well as offline.
- ATM facilities – You can use a supplementary Credit Car to withdraw cash from the ATM anytime of the day. The withdrawal limit will either be the same as that of your original Credit Card or it could be less.
- Reward points – Each time you swipe a Credit Card, you get reward points. After accumulating a certain amount of reward points you are entitled to a benefit from the bank. Supplementary Credit Cards have the same feature and work as an extension of your primary card, earning you reward points every time you use it.
- Monitor Usage – If you wish to grant supplementary cards to your children who are dependent on you, it is possible to keep track of when the Credit Card is swiped and monitor their spending.
- Independence – Supplementary Credit Cards given to parents give them financial freedom and are also useful in times of emergency.
- Easy tracking – All the transactions conducted on the add-on cards are recorded in the same statement as that of the primary card. This helps with easy tracking since everything is in one place.
Additional Reading: Credit Card Handbook: All Questions Answered
Sometimes banks offer fewer features or benefits on add-on Credit Cards, but that is purely at the discretion of the bank. Some banks let the supplementary card holder enjoy exactly the same benefits that the primary card holder does. So, ensure that you learn all the terms and conditions before getting your add-on card.
How Supplementary Credit Cards Work
It doesn’t matter how many supplementary cards are issued under your name; they will be directed to a single account when the dues are to be paid. The details provided and limit set on your supplementary cards are as follows –
- Credit limit – Most often, the credit limit that has been set on your supplementary card is the same as that of your primary card but this may vary from bank to bank. Suppose, you have been issued four supplementary cards and your primary credit limit is Rs. 1 lakh, the sub-limit decided for your supplementary Credit Card shall be distributed equally among all of them. Hence, you are entitled to a limit of Rupees 25,000 on each of your cards (including the primary card). Sub-limits will also apply to ATM withdrawals.
- Details – Information about the transactions on the supplementary card will be recorded on the primary account. So, if you are handing over the add-on card to your child who is above 18 years of age, you can keep track of all the withdrawals and purchases made along with the dates by checking your Credit Card statement which is issued at the end of the month.
- Cost – Most of the time banks issue add-on cards under a primary account for free. But, in rare cases you will have to pay a small fee for them. Sometimes, there’s a limit on the number of supplementary cards are given for free.
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Note: The overall outstanding dues (for the primary and supplementary cards) should be paid through the primary account. Therefore, if payments are not made before the due date, the primary cardholder will be liable to pay the late payment charges and interest to the Credit Card company.
Supplementary cards are a great way to ensure that your loved ones are financially free and ready for financial emergencies in case of a cash crunch. Choose a card that helps you save and one with plenty of benefits. If you’re looking for a fully-packed Credit Card then we have multiple options for you to choose from. You can check them out and apply for them online. Just click on the link below.