By OneCard | August 14, 2023
Rahul, a software engineer, is 35 years old, and his wife, Riya, a journalist, is 33. They have been married for three years and have recently welcomed their first child. Like all new parents, they are uncertain of the increase in their monthly expenses going forward. While brainstorming, they agreed that in order to efficiently manage their budgets, they should keep all their major expenses on a single credit card. This way, they can understand exactly how much they are spending each month and allocate budgets accordingly. However, they realised that using a single card can be tricky as it involves sharing OTPs over the phone. Also, when they are not shopping together at a physical store, they need to use alternative modes of payment like cash, UPI, or debit cards. That is when they think of getting an add-on credit card. Now, Rahul and Riya find managing their monthly expenses much easier. Instead of spending cash or juggling multiple credit card bills, Rahul and Riya simply pay off their expenses once a month. Managing a family budget was never this easy for them!
The use case mentioned above is just one of the many ways a family can make use of add-on credit cards. Typically, people get add-on credit cards to share or manage expenses for parents, siblings, children, or spouses. Following are the main reasons why it makes sense for you to get an add-on credit card:
By linking supplementary cards to a primary cardholder’s account, all transactions are consolidated on a single statement. This makes it easy to keep track of expenses, sort spending into different categories, and set budgets for different family members. Each person who is added as a family to your primary account has the freedom to spend using their own card, but the main account holder can get a view of the overall spending. So whether you want to share or manage expenses for your parents, spouse, children, or siblings, an add-on credit card is the perfect solution.
If someone is young or just starting their financial journey, it can be challenging for them to get a credit card. In these cases, add-on credit cards can come to the rescue. Add-on cards can help them start the training for responsible credit card usage. For some people, past financial missteps may also have impacted their credit score, making it difficult for them to qualify for a new credit card. By giving them an add-on card, you can help them reap the benefits of using credit cards while they revive their financial situation.
Even if your family member doesn’t have a credit score, they can get their own OneCard
Your credit limit is shared with your family’s add on credit cards. You can assign a monthly spending limit ranging from Rs. 2,000 to up to 100% of your credit limit.
Track, manage, and control spends of your family’s add-on credit cards.
Family members earn reward points for their spending, which can be redeemed by them or the primary cardmember as well.
No splitting of offers! Each add-on credit card has separate offers.
Add-on cards do not require any joining or annual fees, just like your primary OneCard!
Step 1: Open your app and go to the “My Family” section
Step 2: Click on the “Add Family Member” button
Step 3: Add details of your Family Member.
Step 4: Your family member will receive an invite, and needs to download the mobile app to complete the onboarding process.
Step 5: You will get a request to approve the request of your family member, to activate their card.
Step 5: Your family member then needs to activate their virtual OneCard to start using it! The physical card will be delivered just a few days later.
Add-on credit cards have a lot of benefits, but there are a few things to keep in mind before applying for one.
Since transactions on both the primary and add-on credit cards are billed on a single statement, the primary cardholder is responsible for all transactions made with the add-on credit cards. While you can certainly share expenses with your family members, if there is any delay in making the repayment, the impact is on the primary cardholder’s account and credit score.
Since add-on credit cards are linked to the primary credit card holder’s account, the impact is also seen on their credit score. So if your family member intends to build their credit profile, it is better for them to get a new credit card for themselves. If they are new to credit or their credit score is low, they can opt for an FD backed credit card.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.