The new RBI credit card guidelines have emphasized that supplemental credit cards should be issued with a clear understanding that the liability will be that of the principal or primary cardholder.
Complementary credit cards are additional credit cards issued against a primary credit card. Let’s say you have a family member who is not eligible for a credit card. You can opt for a complementary card in the name of this family member. The overall credit limit will remain the same for the primary card and the complementary card combined. In other words, the additional credit cardholder can simply share the credit limit with the primary cardholder without any additional credit limit.
A single consolidated credit card statement including transactions made on the complementary card will be issued to the primary cardholder. “The consolidated statement will include all payments, purchases and other credit and debit transactions along with the summary of reward points earned on the primary card and add-on card,” said Sachin Vasudeva – Credit Card Manager, Paisabazaar. com.
Thus, the main cardholder is responsible for paying the contributions incurred on the complementary card. “In the event of an outstanding balance on the add-on card, charges incurred for it will be reflected in the primary cardholder’s statement and will affect their credit score. Therefore, add-on cards should also be managed with discipline and all dues should be paid on time to avoid finance charges,” Vasudeva added.
Additional credit cards are usually free. For example, card issuers such as SBI Card and ICICI Bank offer this additional card at no additional cost. However, finance charges, cash advance fees, late payment fees, overlimit fees, etc. will continue to apply. Giving an example, Vasudeva said that when only the minimum amount due on the additional credit card is paid, it will incur a finance charge on the unpaid amount. In such a case, just like major credit cards, new transactions made on the add-on card will also be ineligible for the interest-free period and will incur finance charges from day one.
Fees and charges on complementary credit cards vary from issuer to issuer; card users should check the applicable fees before applying for a complementary card.