Add-on Credit Cards Explained: Benefits, Risks & How to Apply

Add-on credit cards, also known as supplementary credit cards, are issued against a primary credit card and come with similar credit limits and benefits as that of the primary card. The add-on card is offered to the family members of primary cardholders, like his/her parents, spouse, or children above the age of 18. Most card issuers offer add-on credit cards as lifetime free, i.e., without any joining or annual charges.

However, one important thing to remember while applying for an add-on card is that, although the card functions independently, the primary cardholder remains responsible for all transactions and repayments.

Add-on credit cards are offered with almost all credit cards. However, the maximum number of add-on cards varies as per the variant of your card, typically ranging between 3 and 5. You can check at the time of applying whether your primary credit card allows you to avail an add-on credit card.

Most card issuers allow only a limited number of lifetime free add-on cards, beyond which an annual fee may apply. Add-on cards share the same credit limit as that of the primary credit card, which is divided among all primary and add-on cards. Hence, each card will have a sub credit limit.

Let’s understand this with an example:

Suppose you have a limit of Rs. 1.5 Lakh on your primary credit card, and you have taken two add-on credit cards – one each for your wife and son. Given that you have not set any limit on any of the cards, the two supplementary cards plus the primary card will have a total limit of Rs. 1.5 Lakh. So, if your wife spends Rs. 40,000 on her card and your son spends Rs. 20,000 on his, then you will be left with a limit of Rs. 90,000 on your primary card. Some card issuers may also distribute the limit across all cards. In that case, Rs. 1.5 Lakh will be equally distributed across the three cards, i.e., Rs. 50,000 each.

Besides the credit limit, transaction details of each of the add-on cards will be reflected in the primary account. The bill payment and usage of add-on cards are also linked with the primary account, and any mismanagement of the add-on card directly impacts the primary cardholder’s credit score. Therefore, the primary cardholder has to make sure that add-on cards are used responsibly to build strong credit.

Also, while add-on credit cards offer the same benefits as that of the primary card, select premium benefits like lounge access or golf games are not extended to the add-on card members. Usually, such benefits are offered only on premium credit cards. For instance, HDFC Diners Club Black and HDFC Infinia credit cards offer unlimited complimentary lounge visits for both primary and add-on cardholders.

• Add-on credit cards are usually lifetime free and come with no joining or annual fee.
• Add-on cardholders can avail the same benefits as the primary cardholders, such as rewards, cashback, lounge access and more. Though in certain cases, some premium benefits are extended only for primary cardholders.
• Add-on credit cards offer same reward benefits that come with a primary card. However, the rewards earned on add-on cards are redeemable only by the primary cardholder.
• Add-on cards give financial independence to those who do not have access to credit cards.
• Add-on cards also come with the benefit of revolving credit and interest-free period.
• Add-on credit cards are suitable for students above the age of 18 years, non-working family members and parents of the primary cardholder.

Pros	Cons
Add-on credit cards are usually lifetime free They help primary cardholders accumulate reward points more easily They help primary cardholders achieve spending milestones quickly Add-on cards help build spending discipline for secondary users	The primary cardholder bears all liability Late payments hurt the primary cardholder’s credit score Requires careful monitoring to avoid overspending

While the application process and eligibility criteria vary from one issuer to another, below mentioned are some of the common steps that the primary cardholder needs to follow in order to apply for an add-on credit card:

Step 1: Log in to the net banking or mobile app of your primary card issuer.

Step 2: Under the credit card section, select ’Add-on cards’ or ‘Supplementary cards’.

Step 3: Provide basic information like, name and address of the additional cardholder and the relationship with the primary cardholder.

After a successful verification, your add-on card will be sent to the address given at the time of application.

Who Can Apply for an Add-on Credit Card?

The primary cardholder can apply for an add-on card if it is offered with their credit card variant. To do so, the primary cardholder must fill out an application form and submit the relevant documents, such as proof of relationship with the add-on cardholder, age proof, and more. However, the eligibility criteria for add-on cards vary from issuer to issuer, and the final approval is subject to the card issuer’s terms and conditions.

Add-on credit cards are offered to the immediate family members of the primary cardholder. They are an excellent way to share features and benefits with trusted family members, like your spouse, parents, or children. While these cards are usually lifetime free and allow the primary cardholder to accumulate reward points faster and reach spending milestones more easily, they directly impact the credit score of the primary cardholder. Therefore, it is important for the primary cardholder to keep track of add-on card expenses to avoid any missed payments or misuse of the card that can negatively impact their credit score. You should only apply for an add-on credit card if you’re confident about the spending habits of the add-on cardholder.

Tracking and monitoring the transactions of all add-on cards is important for the primary cardholder because:

• All transactions will be reflected in the primary cardholder’s account, and the payment must be made by the primary cardholder
• The credit score of primary cardholder will be affected in case of missed or delayed payments, as add-on cards are directly linked to the primary cardholder’s account
• The primary cardholder should make sure that the add-on cardholder is a credit-responsible person, as an add-on card directly impacts the primary cardholder’s credit score

• If you have multiple credit cards, then you should choose a primary credit card for an add-on card that best suits the lifestyle of the add-on card member