This problem does not arise because add-on credit cards are secondary cards. This is because banks already have customers’ credit information if they have previously taken out credit cards. While credit cards are available as add-ons to primary credit cards, all transactions made through add-on cards are billed and billed to the original cardholder’s account.
How does an add-on credit card work?
Lenders issue add-on credit cards on top of the first credit card based on credit repayment history. Add-on cards linked to a credit card can track transactions. This makes the user cost conscious and reminds them that some unnecessary expenses may result in extra bills. If the add-on credit cardholder uses a significant portion of the credit limit, it may adversely affect the credit utilization ratio.
A credit card holder can apply for an add-on card either online or offline. An add-on card can be requested from the credit card section of the bank through internet banking. One can also apply for the card through the mobile banking app. Apart from this, one can also apply for the card through offline. Contact the customer care of the bank and request for add-on cards.
An add-on credit card may incur a fee. Depending on the bank’s terms and conditions, the card can range from Rs 100 to Rs 1000. Credit card issuers now offer free add-on cards to attract customers.
Benefits and features
An add-on card is likely to have a lower credit limit than the primary card. Add-on credit cards may be updated from time to time. Also, more benefits are offered when the limit is reached. Moreover, paying primary credit card bills on time can earn more reward points and benefits. These add-on cards are especially useful for college students.