What are additional credit cards and how do they work?

Additional credit cards allow credit card account holders to share credit card benefits and benefits with family members, most commonly their spouse or children. They are also a means of obtaining additional credit and increasing the overall credit limit.

This type of credit card is linked to a primary credit card and usually has the same award structure.

They also allow the additional card member to enjoy some or all of the same benefits and privileges as the primary card member, although the degree to which this applies varies somewhat between providers.

What are the benefits of using additional credit cards?

Credit cards are rewarded for using them. The more qualified transactions you make, the faster you will receive your rewards.

As a rule, the transactions of additional cards are combined with those of the primary card, which increases the value of qualified transactions. This way you can earn more rewards faster with additional cards.

It is common for at least the first additional credit card to be issued free of charge.

Instead of applying for (and paying for) two primary credit cards of the same type, households can instead switch from one primary card to an additional card with no fees.

This leads to a reduction in the total annual fees.

An additional credit card can also be kept as a source of emergency money that can be used when money is needed at short notice.

For example, children studying abroad can be given extra cards to deal with temporary shortages of money instead of having to call home when they run out of money. Look out for a fraud protection feature that lets you monitor suspicious litigation charges.

  • Communicate financial concepts

Credit cards don’t work exactly like money, which makes them an ideal tool for teaching children important financial concepts.

For example, they can be taught the financial concept of credit and debt, which stimulates them to manage their finances effectively rather than turning to borrowing when they run out of money.

Since add-on cards have adjustable credit limits, you can use them to teach children how to set and manage budgets.

  • Pay for the necessary services

If you give your children an add-on card, they can access essential services. They can use their add-on cards to pay for food delivery online or book hail trips to get where they need to go safely.

Providing the means to pay for their own food and transportation can be helpful in discouraging adult children from relying too much on their parents or carers and encouraging independence.

ALSO READ: Should You Share Your Credit Card Account With Your Affiliate?

What are the cons of using additional credit cards?

It is important to note that the primary credit card account holder is ultimately responsible for all credit card balance, whether or not the fees were collected through additional cards.

As a result, if your spouse or children do not exercise financial caution, they run the risk of raising a huge bill that you are hooked on.

If the add-on cards and the main card share a common credit limit, careless spending can also exhaust the credit card limit, which can result in bills and other financial obligations not being paid. You may even have to pay additional administration fees and late fees to correct the situation.

To prevent this from happening, it is important to set a credit limit for each additional card. Any request to increase this limit must be reviewed by the primary card member.

  • The rewards earned are forwarded to the primary card member

The cashback earned is applied to the balance of the main account, while airline miles and award points are credited to the main card member.

Since they helped earn these rewards, the additional card members may feel entitled to ask for some of the rewards. However, sharing it fairly and equitably can be difficult or arduous.

  • No increase in rewards due to caps

Some types of rewards, such as B. Cashback, are limited to a fixed amount and are not increased by adding additional cards.

If the primary card member has already reached the award cap, there is not much to be gained from adding additional cards unless they are airline miles cards or unlimited cashback cards.

Get 6 popular additional credit cards

Credit card Additional annual fee for the card Notable rewards or perks
Standard Chartered Unlimited Cashback Card The first 5 cards are free 1.5 percent cashback on all expenses, no upper limit
UOB PRVI Miles American Express card The first 2 cards are then free for USD 128.40 per card 20,000 miles with spending of $ 50,000 per year
UOB One card The first card then costs USD 96.30 per card

Spend $ 2,000 / month for 3 consecutive months and earn 5 percent cashback

Spend $ 500 or $ 1,000 per month for 3 consecutive months and earn 3.33 percent cashback

Citi PremierMiles Visa Card Free 1.2 miles per dollar for local spending 2 miles per dollar for international spending Miles never expire
OCBC 365 credit card Free for up to 2 years $ 96.30 thereafter 6 percent cashback for restaurants and online grocery deliveries, 3 percent cashback for transportation and recurring telecommunications bills
HSBC Advance credit card The first 5 cards are free 2.5 percent cashback when you spend more than $ 2,000 per month. 1.5 percent cashback when you spend $ 2,000 or less per month

Standard Chartered Unlimited Cashback Card

With the SCB Unlimited Cashback Card you receive 1.5 percent cashback for all your expenses. The more transactions you burden with it, the more savings you will make.

Because of this, this is a great add-on card for your family members. Put a copy in the hands of your spouse and children – simply because there are no annual fees for up to five additional cards – and watch the savings rise.

SingSaver Exclusive: Earn a set of Apple AirPods Pro (valued at $ 379) or $ 300 in cash through PayNow when you apply for the Standard Chartered Unlimited or Standard Chartered Rewards + credit card!

To take part in this promotion, you must be a new Standard Chartered Bank cardholder and activate your new card within the first 30 days of card approval. A minimum spend of $ 200 is also required. If you already have a Standard Chartered Credit Card, you will be rewarded $ 30 in cash when you sign up through PayNow. The offer is valid until February 5, 2021, the terms and conditions apply.

UOB PRVI Miles American Express card

The UOB PRVI Miles credit cards are known for their industry leading local spending rate of 1.4 miles per dollar. However, it is the American Express variant that makes additional cards worthwhile.

Earn 20,000 airline miles when you calculate more than $ 50,000 per year. If you are having trouble reaching this limit on your own, get extra maps and let your family help you.

This reward promotes more add-on cards than fewer. Note, however, that only the annual fees for the first two additional cards are waived.

ALSO READ: Should You Give Your Girlfriend an Extra Credit Card?

UOB One card

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The discount structure may take some time, but the gist is: Spend at least $ 2,000 per month for three months and you’ll be able to earn the maximum cashback (equivalent to 5 percent cashback).

Hence, it is most worthwhile to keep these spending going for as long as possible in order to use this card. This is where your family members come in: have them pool their expenses to meet the $ 2,000 monthly spending and get the greatest cashback possible every quarter.

Citi PremierMiles Visa Card

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With the Citi PremierMiles Visa Card, you can earn airline miles for 1.2 miles per dollar spent locally and 2 miles per dollar overseas.

Since Citi has provided all additional cards for this credit card free of charge for life, you can get one piece each for your spouse and (tax-responsible) children and also collect airline miles for their expenses.

And if you’re worried about a flood of miles, don’t do this: Citi air miles don’t expire.

OCBC 365 credit card

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The OCBC 365 credit card offers up to $ 80 cashback every month (or $ 960 a year, not bad!), But you need to spend at least $ 800 a month to get the cashback. Despite the slightly above average monthly minimum spend, some like that, unlike other cards, there is no categorical limit on how much cashback can be earned.

Recruiting your family members to help you hit the monthly cap by aggregating their transactions, especially if they are frequent for online grocery delivery (6 percent cashback), grab rides (3 percent cashback), and telecom bills (3rd Percent cashback).

It’s a shame that the annual fees for the OCBC 365 add-on card are only waived for the first two years. If you really want to save the annual fee, this card is a great way to get your kids rotating.

HSBC Advance credit card

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The HSBC Advance credit card gives you unlimited cashback of 1.5 percent on all your expenses. If you’re spending more than $ 2,000 a month, that percentage goes up to 2.5 percent.

(Tip: Sign up for an HSBC Advance bank account and earn 1 percent more cashback, up to a maximum of 3.5 percent cashback.)

Ultimately, your cashback is capped at $ 70 per month (for non-advance bank customers), but you can get 2.5 percent cashback on transactions worth up to $ 2,800 per month.

If you can’t quite reach this limit on your own, get your spouse and / or children extra cards to group their purchases together. And since you can apply for up to 5 additional cards for free, there is little reason not to.