Apply for Credit Card!
A Credit Card is a simple payment method for everyday spending that also offers discounts, cashback, and reward
points. However, not all members of your family will be eligible to receive a card. If your school-going
children or your retired parent wishes to apply for a Credit Card, they may find it tough to get one due to the
lack of income proof and credit history. But that is no reason for them to be deprived of the ease and
convenience of using a Credit Card. To address this issue, banks provide Add-on Credit Cards based on your
existing Credit Cards.
Is it a good idea to get Add-on Credit Cards? Make an informed decision after learning about the advantages and
disadvantages of Add-on Credit Cards.
What is an Add-on Credit Card?
An Add-on Credit Card is a Credit Card that is issued in addition to an existing primary card. It is a separate card
with similar features and benefits as the original Credit
Card. The credit limit may be the same as the original card or somewhat lower. The primary
cardholder is responsible for paying for the expenses made using the additional Credit Card. The expenses made using the Add-on card will be a part of the monthly statement of the original card.
Are you considering getting an Add-on Credit Card? Understand the pros and cons of Add-on Credit Cards before making
an application.
The benefits of an Add-on Credit Card
Find out how an Add-on Credit Card can benefit you based on these pros of Add-on Credit Cards.
Accumulate more reward points
The more you spend on your Credit Card, the more reward points you get. You can spend more with additional card users
and collect more reward points.
Build the credit history of secondary users
If your secondary users don't have a credit history yet, an Add-on Credit Card is a great way of introducing them to
credit. Your responsible usage and timely payments can help in building a good credit history for them.
Emergency access to funds
You can give an Add-on Credit Card to your elderly parents or children for emergency expenses.
Track the spending of secondary users
The expenses made using an Add-on card are included in the monthly statement sent to the primary user. If you want
to track what your children are spending on, an Add-on Credit Card is a great option.
Disadvantages cons an Add-on Credit Card
Add-on Credit Cards have plenty of benefits for you. But you must also understand the possible cons of Add-on Credit
Cards before making an application.
Affects the primary user's credit score
As a primary user, you are responsible for all the spending of the secondary users. If they don't use their Credit
Card responsibly, their credit score can be negatively impacted.
Increased annual charges
Banks charge additional annual fees for your Add-on Credit Cards. This increases your yearly Credit Card charges.
Before you apply for an add-on card, check the Credit Card interest rates and the annual Credit Card charges offered by your bank.
Overspending
Having an Add-on Credit Card is
convenient, but it can lead to overspending as well. Overspending increases your monthly Credit Card bills.
Also, if the secondary user overrides the credit limit, your transactions could be declined, and you may need to
pay over limit charges.
If you don't have a Credit Card yet, apply for a Credit Card online with Axis Bank. You can get Add-on Credit Cards
later, subject to your eligibility. Use your Credit Card for all your daily expenses and enjoy reward points,
cashback, and discounts offered exclusively by Axis Bank.
Get complimentary airport lounge access, welcome benefits, dining and travel savings, and more. Browse through the
various types of cards offered by Axis Bank and select the best choice for you.
Also Read: Credit Card without income proof
Conclusion
Add-on Credit Cards can be quite beneficial for you when managed responsibly and carefully. You can achieve your
spending milestones faster and can collect more reward points. However, you must explain the importance of using
credit responsibly to the secondary cardholders to truly benefit from Add-on Credit Cards.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank
Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by
the reader for taking any financial decisions based on the contents and information. Please consult your
financial advisor before making any financial decision.
