What is an Add-On Credit Card?

An add-on credit card, also called a supplementary card, is an extra card linked to the primary cardholder’s account. Family members like your spouse, children, or parents can use it to access the credit card’s benefits. The add-on card shares the primary card’s credit limit. However, the primary cardholder is responsible for all payments and charges.

In India, banks like HDFC, SBI, ICICI, and Axis Bank offer add-on credit cards. These cards are a great way to share perks like cashback, rewards, and discounts with family members.

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How Do Add-On Credit Cards Work?

1. Shared Credit Limit:
   The add-on card uses the same credit limit as the main card. You can set limits for each add-on card to control spending.
2. One Monthly Bill:
   All transactions from both the primary and add-on cards appear in one consolidated bill. However, some banks offer separate statements to track individual spending.
3. Primary Holder is Responsible:
   The main cardholder is responsible for paying the full bill. Any missed payments affect their credit score, not the add-on user’s.

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Benefits of Add-On Credit Cards

1. Share Benefits:
   Add-on users enjoy the same perks as the primary cardholder, such as cashback, reward points, and lounge access.
2. Emergency Use:
   Perfect for family members who need funds for emergencies or regular expenses.
3. Control Spending:
   You can set spending limits for each add-on card to ensure responsible usage.
4. Good for Beginners:
   Add-on cards are great for young adults or homemakers who are new to credit cards.
5. Cost-Effective:
   Many banks offer add-on cards free or at a very low cost.

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Things to Keep in Mind Before Getting Add-On Cards

1. Credit Score Impact:
   The primary cardholder’s credit score is affected by how add-on users spend and repay. Irresponsible usage can harm their credit.
2. Limited Cards:
   Banks usually allow a maximum of 3–5 add-on cards per primary card. The exact limit depends on the credit card variant.
3. Credit Building for Add-On Users:
   Add-on cards are a good start for family members with limited credit history. However, they may not help much in building their credit score. Credit agencies only report loans or cards directly issued in a person’s name.
4. Check Fees:
   While many banks offer add-on cards for free, some charge a small annual fee. Always confirm the costs before applying.
5. Usage Limits:
   Some banks let you set a lower limit for add-on card spending, different from the main card’s total credit limit.

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How to Apply for an Add-On Credit Card

Applying for an add-on credit card in India is easy. Follow these steps:

1. Check Eligibility:
   Ensure your bank offers add-on cards. You’ll need to apply for family members like a spouse, parent, or child (18 years or older).
2. Gather Documents:
   • ID proof (Aadhaar, Passport, or PAN card)
   • Address proof
   • Relationship proof (e.g., birth or marriage certificate)
   • Passport-sized photo of the add-on user
3. Submit Application:
   • Online: Log in to your bank’s net banking platform and fill out the add-on card form.
   • Offline: Visit the nearest branch and complete the application form with documents.
4. Approval:
   The bank will review the application. If approved, the add-on card is usually delivered in 7–14 working days.

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Tips for Using Add-On Credit Cards Wisely

1. Set Spending Caps:
   Always set a limit for how much add-on cardholders can spend.
2. Track Spending:
   Use your bank’s app or statement to keep an eye on all transactions.
3. Educate Family Members:
   Teach add-on cardholders the importance of responsible spending and timely repayments.
4. Opt for Separate Statements:
   If you prefer to track add-on transactions separately, ask your bank for a split statement.
5. Pay Bills on Time:
   Make sure to pay the full credit card bill on time to avoid interest charges or damage to your credit score.

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Conclusion

Add-on credit cards are a great option for Indian families. They let you share benefits, manage expenses, and help family members get started with credit. However, they also require careful monitoring to avoid financial problems. Before applying, make sure to check the fees, limits, and eligibility. With proper planning, add-on credit cards can be a valuable financial tool for your family.