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22 MAY, 2020

Owning to the several benefits they carry, credit cards have grown to become an immensely popular financial tool. They let you access a large sum of funds while aiding in making everyday purchases. The card also let you carry a host of special rewards and offers that you can redeem with different spends. Credit cards are only offered to individuals who meet the criteria that includes a steady income and an acceptable credit score.

The extensive qualifications required to be eligible for a credit card makes it difficult for first time job holders and students to be eligible for one. This is where an add-on credit card comes in. Add-on credit cards are cards that are offered against a primary credit card. The supplementary cards can be used by parents, spouse and children above the age of 18 years, of the primary card holder.

Read on to know the benefits of an add-on credit card:

Aids credit-challenged individuals – As mentioned above, an add-on credit card can be used by individuals who do not meet the credit card eligibility criteria. It gives your family members a good opportunity to use a credit card, even if they lack credit history. Elderly people, your credit-challenged spouse and your children above the age of 18 years can conveniently access a credit card through this offer.

Similar usage benefits – Add-on credit cards are usually extended with the similar usage benefits as a primary credit card. The card can be used to make different types of purchases online as well as offline. One can also use the card for cash withdrawals at an ATM. However, the limit of spends on an add-on credit card may be controlled at the discretion of the bank.

Tracking of usage – The primary card holder can track the usage made through all the add-on cards. Additionally, the expenses are recorded under the account of the primary holder. Thus, the primary holder is in full charge of any spends made through this kind of card.

Earn rewards – The add-on credit card lets you enjoy rewards just as with the primary credit card. This includes reward points, cash back benefits, discounts and more. These rewards may be redeemed through different permissible ways once accumulated.

An add-on credit card is linked to the primary credit card. You must note that the card shares the same credit limit as the primary card. This essentially means that the primary holder is responsible for all the transactions made through an add-on credit card. Any default, non-payment or misuse of the card that leads to an insurance of penalty will have to be borne by the primary card holder. Thus, the primary credit card holder must check the credit report regularly to avoid any negative impact on the credit score.



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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.