What is a supplementary credit card?
A Supplementary credit card or an add-on credit card, as it may sometimes be called, is an additional card issued under your credit card account; Supplementary Credit Cards can be issued to your family members (children, spouse, parents etc). Supplementary credit cards may carry the name of your family member(s) for whom it is applied for. The number of supplementary cards that can be issued will vary from bank to bank.
Benefits of supplementary credit cards
Providing an easy credit/spending facility to your family members – Supplementary credit cards give your family members spending independence.
Learning Tool – A supplementary credit card can help your children learn how to manage finances and also get to grips with an important financial tool that could be of great potential benefit to them in the future.
Set spending limits – You will generally be able to set the credit limit on your supplementary cards; this will allow you to restrict or expand usage on these cards, as you deem fit.
Hit spending thresholds faster – Certain types of rewards may require higher spending; supplementary cards will help you reach these thresholds faster.
Earn more rewards – Spends on your supplementary cards are also eligible for rewards like reward points, rebates or air miles.
Easy monitoring – You will usually get a consolidated statements listing all the transactions on your principal and supplementary credit cards. You may also opt for email / SMS alerts on supplementary card usage. This will help you better track and monitor your supplementary card spends.
Cons of supplementary credit cards
Credit limit – Supplementary cards do not add to your credit limit; the total credit limit that can be availed of for the principal and supplementary cards put together will be the same as the one available on your principal credit card or account.
Additional fees – You may be required to pay additional fees on each of the supplementary credit cards issued under your credit card account.
Spending limits – You may find yourself easily reaching higher spending limits than what you’ve been accustomed to when there were no supplementary cards issued under your account.
A few supplementary credit card programs in the Philippines
Here, we will take up a few examples of supplementary credit cards:
Citibank – You can apply for up to 7 supplementary cards. You can set spend limits of as low as P10,000 on these cards. You can also earn rewards (points, rebates and Premier Miles) from supplementary card purchases.
HSBC – You can apply for up to 4 supplementary cards. Supplementary cardholders must be between 15 to 65 years old. Supplementary cardholders may be spouse, children, children-in-law, parents, parents-in-law, siblings and siblings-in-law. You can even apply for a supplementary card for non-relatives. Additional details may need to be provided in this case.
Standard Chartered Bank – You can apply for up to 5 supplementary cards to your immediate family members – spouse, children, parents or siblings. Minimum age requirement is 16 years.
Metrobank Card – Assign credit limits and earn 1 point for every P20 that your supplementary cardholder spends.
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