Add-On Credit Cards: Dark Side of Free & Easy to Get Card
Additional cards are a double-edged sword. Either you learn to organize yourself and strengthen your personal relationships, or they end up destroying everything…
Giving an additional card to someone else is like lending the key to your house. You never know how that act of trust will turn out. If you plan to give a “gift” to someone, consider the following:
It can negatively impact your credit history. One of the main problems with this type of card is that the debts or charges made by the other person will appear on primary card holder’s credit history as he is the main account holder.
You are responsible for the debts of others. Since you, the primary card holder, is the one who signed up for the credit card. In case the co-owner fails to pay his or her debts, primary user will be legally responsible for those debts. In other words, you are legally committed to settle any debts generated by the additional card.
You will not receive separate statements. Only one statement will arrive with the separate charges per card. So you, as the primary cardholder, will see all the charges made with the additional plastic.
You get to disburse your money. If the person to whom you granted the supplementary credit card is not the most punctual at the time of payment, to avoid generating interest on your plastic you will have to put your money to cover the total of the charges.
They take you away from your friends or family. If you are going to give an additional card to a friend or relative, think twice. Many times, a friendship or family relationship ends or fades because of money issues. Perhaps the best thing to do is not to risk it. Ideally, you should talk and make clear the way in which each one of you will be in charge of the expenses made with the plastic to avoid misunderstandings.
They give you a hard time. If you let your heart guide you and not your mind and you gave an additional card to your partner, see the charges of your partner or agree to divide or pay the card can generate arguments and bad times.
As they say, debt is dangerous. So it is better that each person has his or her own and thus avoid problems and misunderstandings. If after this, you still have the idea of applying for an additional credit card, the best thing to do is to establish the way in which the charges will be adjusted and the way in which the payment will be settled each month.
I am Nikesh Mehta, owner and writer of this site.
I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected] or LinkedIn profile.