Add-on credit cards are a smart way to manage family expenses and build credit scores together. When you get a credit card for yourself, most banks give you the option to add-on cards for your family members, like your spouse, parents, siblings, or your kids. 

These cards are linked to your main account and share the same credit limit. Every swipe with an add-on card earns reward points, cashback, and perks, just like the primary card. Read more to learn how to use add-on credit cards to build family credit. 

Understanding an Add-on Credit Card 

An add-on credit card, also known as a supplementary or secondary card, is issued under a primary credit card account. It allows you to share your credit limit with close family members, while giving the primary cardholder the ability to monitor their spending.

All transactions made using the add-on card are billed to the primary cardholder. This makes it easy to manage family expenses in one place and is especially useful for parents to track their children`s spending behaviour. 

Why Choose an Add-on Credit Card?

Add-on credit cards come with several benefits that make managing family finances simpler and smarter. Here is why you might want to consider one: 

• Shared Credit Limit 

The add-on card uses the same credit limit as the primary card, so all spending is deducted from a common balance. 

• Separate Transaction Histories

You can track separate statements for each card, making it easy to monitor individual spending while keeping everything under one account. 

• Low or Zero Fees

Most banks issue add-on cards for free or at a very minimal charge, making them a cost-effective option for families. One such card is the One Credit Card. 

• Convenient Family Budgeting

Manage all your family’s expenses through a single account, simplifying budgeting and monthly financial planning. 

• No Extra Credit Check Needed

Since the credit assessment is already done for the primary cardholder, add-on cards usually don’t require a separate approval process. 

• Handy in Emergencies

Ideal for urgent situations, you can use this card for medical emergencies, travel requirements, or debt consolidation. You can also provide funds to your family members in case of emergencies. 

How to Use Add-On Credit Cards to Build Family Credit

Add-on credit cards can help your family build good credit while managing expenses together. Encourage your family members to use the add-on card for small, regular expenses like groceries or fuel, which can gradually build their credit profile. Here are some tips you can follow to help enhance your credit score: 

• Set a Spending Limit for Each Card
  Most banks let you set individual spending limits for add-on cards. This keeps expenses controlled while giving you financial freedom. 
• Encourage Responsible Use
  Guide your family members to use the card for necessary and planned purchases only. Avoid unnecessary spending to eliminate over-limit charges and keep your credit score on track. 
• Pay Bills on Time
  Since all expenses reflect on the primary card’s statement, ensure you pay the total outstanding amount before the due date. However, paying only minimum dues enables additional interest liability and increases your total payable amount, leading to a lower credit score. 
• Track Transactions Regularly
  Monitor both the primary and add-on card transactions via the bank’s app or net banking. This helps in managing family expenses efficiently. 

Things to Remember While Using Add-On Credit Cards

If you’re using an add-on credit card, here are a few important points to keep in mind:

• All transactions made with the add-on card will appear in the primary credit card statement. 
• If the add-on card is misused or overused, it can negatively impact the primary cardholder as well as the secondary cardholder’s credit scores. 
• All expenses on the add-on card are billed to the primary cardholder’s statement. The main cardholder is responsible for clearing the dues. 
• Any interest, late fees, or penalties on the add-on card will be charged to the primary card account, lowering your credit score even more. 

How to Apply for an Add-on Credit Card

If a family member is not yet eligible to buy credit card, an add-on card is a great alternative. Applying for an add-on credit card is a mostly quick and hassle-free process. You can easily get one for your family members by following a few simple steps. 

1. Choose a credit card provider. Consider using the same issuer if you already have a primary credit card with some other lender 
2. Visit the bank’s official website and head to the credit card section to find the add-on card option 
3. Complete the application form with both the primary and add-on cardholder’s details 
4. Submit the necessary documents for the additional cardholder, if asked 
5. Once approved, the add-on credit card will be dispatched to your registered address 

With the add-on option, you can smartly manage your family expenses while earning extra rewards. It keeps track of everyone’s spending and helps improve the family’s overall credit profile. Before applying, check the credit card requirements to make sure you choose a card that suits your needs. 

If you’re searching for a good option, you can consider the One Credit Card. It offers lifetime free add-on credit cards with no hidden charges, no annual fees, and zero joining fees. You get 5X reward points on your top two spending categories and other features like rent payment, EMI conversion, budget management, and more. 

It comes with an all-in-one OneCard app, which allows instant bill tracking and transaction approvals with a swipe. It also allows you to buy gift cards for value back, and even plan international trips with the OneTrips feature. 

This stylish metal card comes with complete control through the OneCard app makes it easy to manage your add-on cards in one place.