What is Add On Credit Card | Add On Credit Card के फायदे और नुकसान ?

An add-on credit card is a type of credit card that is linked to a primary credit card account. The primary credit card holder, usually the primary card holder, can add authorized users to their account and issue them an add-on credit card. These authorized users,

usually family members, can use the add-on credit card to make purchases and access credit. However, the primary card holder is responsible for paying off the balances on all the cards linked to their account, including the add-on credit card.

An add-on credit card can be a useful tool for managing a household budget and building credit, as authorized users can make purchases and pay off the balances on their own, but the primary card holder is responsible for the account, so the primary card holder can monitor the spending and the payment of the add-on card holder.

It’s always recommended to check the terms and condition of the primary credit card issuer as the feature and benefits of the add-on card may vary by issuer.

An example of an add-on credit card is the Visa Signature card issued by Citibank. With this card, the primary card holder can add authorized users to their account and issue them add-on Visa Signature cards.

These authorized users can make purchases and access credit on their own add-on cards, but the primary card holder is responsible for paying off the balances on all the cards linked to the account.

Another example is the American Express Gold Card that allows the primary card holder to add up to 99 additional card members to the account at no extra cost.

Each additional card member will have their own card, can make purchases and earn rewards, and the primary card holder will be able to see their transaction history and manage their spending limit.

It’s always recommended to check the terms and condition of the primary credit card issuer as the feature and benefits of the add-on card may vary by issuer.

There are several rules to using an add-on credit card:

1. The primary card holder is responsible for paying off the balances on all the cards linked to their account, including the add-on credit card.
2. The authorized user, who is using the add-on card, is not responsible for paying off the balance on the card.
3. The limit of the add-on card is set by the primary cardholder and it may have a lower limit than the primary card.
4. Add-on card holders usually do not have the same benefits as primary card holders.
5. The primary card holder can monitor the spending and the payment of the add-on card holder and restrict the usage of the card if necessary.
6. Some issuer may charge additional fee for the add-on card.
7. The use of the add-on card may be subject to the terms and conditions of the primary credit card issuer.

It’s always recommended to check the terms and condition of the primary credit card issuer and consult with customer service representative for the most accurate and up-to-date information on how to use the add-on card as the rules and regulations may change over time.

There are several potential negative effects of using an add-on credit card:

1. The primary card holder may be held responsible for any unpaid balances or late payments made by the authorized user on the add-on card, which can damage the primary card holder’s credit score.
2. It can be difficult for the primary card holder to monitor and control the spending of the authorized user on the add-on card, which can lead to overspending and debt.
3. The authorized user on the add-on card may be tempted to overspend, which can lead to financial difficulties for both the primary card holder and the authorized user.
4. Add-on card holders usually do not have the same benefits as primary card holders, which can be an inconvenience.
5. It can be difficult for the primary card holder to manage multiple bills and payments each month if they have multiple add-on cards.
6. The primary card holder may be charged additional fees for having an add-on card.

It’s always recommended to use add-on credit card responsibly, to monitor the spending and the payment of the add-on card holder and consult with customer service representative for the most accurate and up-to-date information on how to use the add-on card as the rules and regulations may change over time.