Managing finances efficiently is more important than ever in today's fast-paced world. Whether juggling personal expenses or sharing financial responsibilities with family, the need for a practical solution is undeniable. Enter - Add-On Credit Cards, a game-changer in the realm of financial management.
What is the meaning of an Add-On Credit Card?
An Add-on Credit Card, also known as a supplementary card or secondary card, is essentially an extension of your primary Credit Card. Cardholders can share their credit line with family members or close associates, such as a spouse, children, or parents. The extra Credit Card, backed by the same account as the main card, allows individual spending freedom.
How does an Add-On Card work?
An Add-On Credit Card or companion card is a unique financial tool that brings flexibility and convenience to your financial management. Let's delve deeper into how these cards operate:
Credit limit sharing
The primary feature of an Add-On Card is its shared credit limit. Unlike having separate Credit Cards for each family member, an Add-On Card links directly to your primary Credit Card account. This means that the total credit available is a shared pool accessible through both the primary and the Add-On Cards. It's an efficient way to manage your family's spending without the need for multiple credit accounts.
Individualised spending control
One of the biggest advantages of an Add-On Card is the ability to set individual spending limits. This feature is particularly beneficial for parents who wish to provide financial access to their children while maintaining control over their spending. You can customise the spending limit on each Add-On Card, ensuring that family members can spend responsibly without risking overspending.
Also Read: 5 strategies to help you get instant approval on Credit Cards
Seamless transaction tracking
Each transaction made with an Add-On Card is meticulously tracked and itemised in your monthly Credit Card statement. As a primary cardholder, this breakdown allows you to monitor and manage expenses efficiently. Whether it's understanding your child's spending habits or ensuring that elderly parents are not overspending, this feature offers invaluable insights into your family's financial activities.
Credit score building for secondary users
An often-overlooked advantage of Add-On Card is their ability to assist in building a credit score for secondary users. The Add-On Card activities link to the primary account, so responsible usage and timely payments can positively affect the credit scores of both primary and secondary cardholders. This is particularly beneficial for users who are new to credit or are looking to improve their credit history.
Rewards and benefits accumulation
Add-On Cards or co-applicant cards multiply the opportunity to earn rewards and benefits. Every purchase made with these cards accumulates rewards points, air miles, cashback, or other perks offered by the primary card. This collective earning potential can lead to significant savings and benefits for the entire family.
Emergency access and convenience
In cases of emergency, an Add-On Card can be a lifeline, providing cardholders access to funds when needed. For family members who travel or live apart, having an Add-On Card means they have financial support readily available, bringing peace of mind to both the primary cardholder and the supplementary users.
How to apply for an Add-On Card?
Applying for an Add-On Card is a simple and streamlined process:
Choose a provider: Select a bank for the Add-On Card. If you already have a primary credit card, consider using the same bank for ease of management.
Online application: Visit the bank’s website, find the credit card section, and apply for an Add-On Card.
Fill in details: Complete the application form with information about the primary and secondary cardholders.
Document submission: Submit any required documents for the secondary cardholder, if necessary.
Approval and Credit Card Delivery: After processing and approval, the Add-On Card will be sent to your address.
Benefits of Add-On Cards
- Convenience: It offers the convenience of managing family expenses under one account. This can simplify budgeting and tracking of expenses, as all transactions are reflected in a single statement.
- An educational tool for young adults: An Add-On Card can serve as a valuable financial education tool, helping them learn about credit usage, budgeting, and financial responsibility under the supervision of the primary cardholder.
- No additional approval needed: Since the creditworthiness assessment is already done for the primary cardholder, additional cardholders typically don’t need to undergo a separate credit check or approval process.
- Emergency assistance: In case of emergencies, especially when travelling, having an Add-On Card can be a lifesaver, providing immediate access to funds without the need for cash transfers or other arrangements.
Also Read: Navigating Credit Cards features and benefits
Conclusion
Add-On Credit Cards, particularly those offered by Axis Bank, epitomise convenience and efficient financial management. These cards are not just payment tools but valuable allies in your financial journey. Axis Bank's Add-On Cards allow you to extend your credit line's benefits to your family, ensuring a shared yet responsible approach to spending.
Axis Bank's Credit Cards and Add-On Cards, designed for managing expenses, building credit, or earning rewards, cater to diverse needs, blending individual freedom with collective responsibility.
With Axis Bank, empower your loved ones with the key to smarter financial management, opening doors to a more organised and prosperous financial future.
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.
