Friday, 13 January 2017

Things You Must Know About Supplementary Credit Cards

Credit cards have made our lives a lot easier today- there are no two ways about it.  Before they existed, the only option was to take a loan, which was time-consuming and inconvenient, especially when a small amount of money was required. However, credit cards emerged as the perfect solution for instant loans. Now, whether it is a medical emergency, or funding requirement for a small business, even if it is not the best credit card it comes in handy in any situation.
Apart from a credit card, you can today also get supplementary credit cards for extra comfort. A supplementary credit card is basically an additional credit card which is issued under your primary credit card. You can get these cards for your family members so that they can also enjoy the benefits of a credit card. Different banks have different rules regarding the issuing of supplementary cards, in terms of maximum no. of card allowed to be issued, and associated fees and credit limits.
How Does a Supplementary Credit Card Work?
The thing about supplementary credit cards is that they don't carry a separate credit limit. In other words, all the supplementary credit cards will be payable under the primary credit card, and not separately.
In most cases the cumulative credit limit on the supplementary credits is the same as on your primary credit card. For instance, if your primary credit card has the limit of Rs. 2 lakh, and if you have 2 supplementary credit cards, then each will have a limit of  Rs. 1 lakh each. In other words, whatever is the limit of your primary credit card, it is divided equally among your supplementary cards. The limits are also applicable on your ATM withdrawals.
Another benefit of using supplementary credit cards is that all the transactions are filed under your primary card. Thus, if you are the primary card holder you can monitor all activities on the supplementary cards from your own account.

Advantages of Using a Supplementary Credit Card
A supplementary credit cards holds the same benefits as a primary credit card. However, depending on your bank there may be some changes. Here are some of the most common benefits of supplementary credit cards:
·        Convenience: You can get supplementary credit cards for your parents, so that in times of emergency they can have access to money easily. The same goes for your children. If they are over 18 years of age, you can get them their own individual supplementary credit cards to ensure they don't have to worry about money in future.
·        Cash Withdrawal: Sometimes you need physical currency, when digital money won't do.  In a situation like this you can use your supplementary credit card to withdraw cash from an ATM, just like using a credit card.
·        Expenditure Monitoring: One of the best ways to teach your children about good credit-usage habits is to give them supplementary credit cards. That way you can easily monitor how they use their credit. You can get detailed reports every month, and keep an eye on their finances.
·        Reward Points: One of the many reasons why people use credit cards is to enjoy the reward points they offer whenever you shop with them. Supplementary credit cards also offer the same advantage. With every purchase made with a supplementary credit card you get a certain number of reward points which can be covered into cash later.
How Much Does it Cost to Get Supplementary Cards?

In most cases you can get supplementary cards for free from your bank. However, sometimes you have to pay a small fee for the service. In some cases you may get a certain no. of supplementary cards for free, and for extra you have to pay a fee. One important thing to understand before you apply for supplementary cards is that the primary card holder is solely responsible for the payments of all the supplementary cards. Thus, you must provide these cards only to those who you know can be trusted with them. Falling behind payments can lead to a poor CIBIL score, and marred credit report

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