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Individuals are spoilt for choice when it comes to gifting ideas. There are a number of gifts that individuals can give their loved ones, but the best gifts are the ones that are useful and serve a purpose. However, most individuals would not have considered presenting their loved ones with plastic money. That’s right! Credit cards can also be given as gifts to loved ones which allows them the freedom to purchase whatever it is that they require. And no, this is not the same as a gift card which generally comes with a set prepaid limit. Once this limit is exhausted, individuals will have to either recharge the card or get a new one.
The advantages and the ease of using plastic money is something every individual knows and loves, but there are times wherein they are unable to avail one. In such circumstances, gifting an add-on credit card will be the perfect solution to all gifting requirements. Its user-friendly features are also an added advantage.
Supplementary or add-on cards are additional cards that can be given to family members of the main credit holder, as per his/her request. This card can only be given to those who are above the age of 18. These add-on/supplementary cards allow the holder to use them in a manner that is similar to credit cards, but as per pre-determined rules and the onus of this spending is on the main credit card holder. All card providers also have a set of rules that will have to be followed in order to procure supplementary cards.
More than one supplementary card can be issued by the primary card holder for each member of his/her family. However, the total number of cards that can be availed is dependent on the card provider’s policies.
Additional documents need not be provided by the users of these supplementary cards such as proof of address, income and so on as these add-on cards will be provided based on the documents submitted by the primary account holder. Privileges given to the holders of supplementary cards are the same as that given to primary account holders except perhaps, the credit limit. Supplementary cards generally come with a lower credit limit. The per-day limit as well as the overall limit of these add-on cards are fixed. If more than one add-on card is issued, then the limit is divided by the number of users.
Supplementary cards are provided by many banks without charging an additional fee, whereas others may provide a limited number for free and charge for additional cards. Certain banks may also charge an additional fee for the very first add-on card. These details will depend on the card provider.
It must be noted that add-on card transactions are recorded in the primary holder’s statement itself and a consolidated statement is sent to the primary holder. Transactions made by each of these cards can be tracked and monitored by the primary account holder, or even opt for alerts.
Certain individuals may find it difficult sometimes, to apply for a credit card such as retired individuals, students or even housewives as they may not have the required documents or financial status. Carrying cash is a viable option but having a credit card is always an advantage.
In such cases, providing them with a supplementary card is helpful as the primary holder can always track the progress and monitor their spending while allowing supplementary card holders to enjoy the benefits that come with credit cards.
Although supplementary cards come with their share of advantages, primary cardholders will have to ultimately bear the brunt of misuse, if it occurs. The responsibility of these cards lies with the primary holder and hence should ensure that add-on cards are used judiciously.
Extreme credit utilization will harm the primary cardholder’s credit score and reckless use of these add-on cards may cause issues during the time of payment.
Supplementary cards are a good gifting idea as they provide some measure of financial convenience and independence but can also create problems if misused. Hence, these cards must be used cautiously.