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4 Things You Need To Know About Supplementary Credit Cards

things to know about supplementary credit cards

Supplementary cards are great when you give it to the right person. Or they could seriously hurt you when you entrust it to someone who has no idea how to manage finances. Giving someone a supplementary card essentially means you’re allowing him/her to spend your credit on your behalf. Sounds risky? The truth is, the fault doesn’t lie in the card itself. Supplementary cards can be really great or really detrimental — it all depends on who you entrust it to.

Want to know how you can benefit from supplementary cards? Read on to find out.

1. How does it work?

You can think of supplementary cards as an extension of your primary card. It’s basically like an add on! All supplementary cards are based on the policies and perks of your primary card. No matter how many supplementary cards you have, the bank treats all your cards as one account. For instance, if your card has a credit limit of $120 000 p.a , the same credit will be shared between both cards. This means that the $120 000 p.a will be divided between your primary card and your supplementary card.

2. Earn more rewards

More spending charged to your account means earning more points. If you want to fast track your rewards, getting someone to spend through the supplementary card can easily help you earn more rewards. This is a pretty good strategy if your primary card lets you earn unlimited rebates or miles from spending in a wide range of categories. You don’t have to spend too much time keeping track of expenditure on both cards to make sure there’s no over-spending.

3. Great for your family members who don’t earn an income

Whether it’s for your kids who are still studying or your home-maker spouse, giving them a supplementary card is a great idea since they don’t qualify for most of the cards in the market. Most credit cards require a minimum of $30 000 annual income and up, which makes it difficult for them to apply for a card. Giving them a supplementary card is great in cases of emergencies as well.

4. Only give it to someone you trust

This is really important. You don’t want your supplementary card to end up in the wrong hands because that can be detrimental to your finances. Family members close to you are usually the safest to be entrusted with a supplementary card. However, it’s still important to practice caution. You want your card to be in the hands of someone who understands your financial situation, not someone who would splurge irresponsibly.

There are many reasons why people apply for supplementary cards. Some give them to family members in case of emergencies while some want to use supplementary cards as a means to earn rewards more quickly. Whatever your reason, it’s still important to make sure you entrust the card to a responsible person you trust. Earn more rewards with another card, not more debt!

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