Does Add-on Card Affect The Primary Cardholder’s Credit Score?

Credit cards have proven to be very useful, especially at the time when needs arise at very short notice. Additionally, it allows you to take advantage of amazing deals and grab reward points and cashback on every purchase made through the card. There are many eligibility criteria that have to be cleared before you get a credit card. In such a situation, individuals such as first jobholders, students, housewives, etc may not be able to take advantage of such offers and deals. This is where an add-on credit card comes into the limelight. Do you know what add-on cards are? And does add-on credit card affect credit score of the primary cardholder?

Add-on credit cards or supplementary credit cards are the cards that are issued under a primary credit card. The primary cardholder can get add-on cards for his family members. An add-on card generally has the same features as that of the primary credit card which includes reward points, cashback, etc. Generally, banks do not charge any fee on the add-on cards but even if they do so, it is very nominal and affordable.

A primary cardholder can apply for an add-on card for his immediate family members. The number of add-on cards varies from bank to bank. Generally, the range is between 3 to 5. The credit limit of your add-on card will be the same as that of the primary card. It can be used up to the total limit of the card.

Also read: Why you should consider Add-on Credit Cards? Check out the Features and Benefits

Do add-on cards affect the primary cardholder’s credit score?

Since all dues of the add-on card are billed to the primary cardholder, hence any delay or default in the payment of the add-on card will be reflected in the primary cardholder’s CIBIL report and will negatively affect the credit score of the primary cardholder. Sometimes there might be a case where the primary cardholder has not used the credit card for any transaction but the add-on cardholder has. Therefore, it is the duty of the add-on cardholder to inform the primary cardholder about the transactions he has made through the card and about the bill the primary holder has to pay. Primary cardholders should inform all the add-on cardholders about the same and should guide them about the usage. Therefore it is very important for the primary cardholder to have a clear knowledge about the spending done through the add-on card as well.

Points to be considered in case of an add-on card

• The primary cardholder should make sure that the person who is getting an add-on card is responsible enough. For example, if you are applying it for your daughter, you should make sure that she has maintained a good relationship with money in the past. If you know that she will not be able to handle the add-on card sincerely, do not get her an add-on card under your account.
• You can always set a limit on the add-on card. By doing this, you can make sure that your supplementary cardholder will stay within the limit and you will be well aware of the maximum amount he can spend through his card.
• You should always keep a track of all the expenses done through the add-on credit card.
• You can guide the add-on card members as to what is the correct way to use a credit card as in when, why, and where a credit card should be used.

Bottom Line

An add-on card is nothing but just an additional card that shares the same limit as that of the primary credit card. This can be issued to the immediate family members of the primary cardholder. A primary cardholder can let his other family members also enjoy the benefits of the credit card but should well educate them about the usage of the credit card. An Add-on card holds importance as good as a primary credit card. All the repayments of the add-on credit card will have to be done in the same way as of a primary card. But the ultimate responsibility of the add-on card lies in the hands of the primary cardholder only. Hence it becomes important for the primary cardholder to track all the transactions and spendings done through the add-on credit card as well as any default will result in a negative impact on his own credit score.

Additional Reading: Things That Surprisingly Don’t Affect Your Credit Score