Some credit card users may be familiar with additional credit cards. But did you know there are some things you should consider before deciding to take an additional credit card. Speaking of additional credit cards, additional credit cards are credit cards that are made from the main credit card, this card will get the balance taken from the main credit card balance. For example: If the balance given by the issuing bank to the main card is 20 million dollars, then the additional credit card can also use the same nominal amount.
In addition to balances, usage or transactions made by additional credit cards will also be listed on the same billing sheet as the main credit card. For example, in September an additional credit card A purchases a school bag with a nominal value of 1.5 million dollars, then the billing statement will show the transaction with the same nominal but later it will be distinguished from the subtitles above the transaction details of which card transactions the. In this case all transactions carried out by additional credit cards will become the burden and responsibility of the main credit card holder. Because additional credit cards are only a branch of the main credit card, both the balance and transaction will affect the main credit card.
Then what are the considerations that you must make before making an additional credit card for your family members? The following explanation:
1. Annual Fee
The first thing to consider when you want to make an additional credit card is the annual fee. Although additional credit cards are a branch of the main credit cards, they will still be charged an annual fee, so don’t be surprised when you want to pay credit card fees, there are two credit card bills that are small.
The next thing you should pay attention to is the limit. As explained earlier, the limit given to an additional credit card is not separate from the limit given to the main credit card. The existing limit is a sharing limit that can be interpreted as one limit for two cards. For example, the limit given is 20 million dollar and the main card holder has used it around 15 million dollar, so the remaining limit that can be used by additional credit cards is only 5 million dollar. Sometimes we don’t pay too much attention to the limit, even if for example an additional card holder makes a transaction of 5.5 million dollars even though the limit is only the remaining 5 million dollars, an over limit transaction will occur which will be billed in your billing.
Another consideration before making an additional card is a promo that can be obtained for additional card holders if there are attractive promos such as giving lower shopping interest to additional card holders within a certain period. If there is of course you can benefit from it.
4. The Need for Credit Cards
Another thing that must be considered is whether the additional credit card that we will make later can meet the cardholder later. Because everyone has different needs in terms of using a credit card, it may be that the main credit card holder already feels fulfilled all his needs but it could be that additional credit card holders are not being met. So you should try to reconsider whether making additional credit cards from our issuing bank is in accordance with the needs of the additional credit card holders later.
5. Use of Credit Cards
Another thing to consider in terms of making additional credit cards is whether the person we want to register as an additional credit card holder is responsible enough and mature enough to consider using his credit card. Because as we discussed at the beginning, all transactions carried out by additional credit card holders will be charged to the main credit card billing and it is certain that the bill is obliged to pay the primary cardholder. So really consider carefully whether the additional credit cards that we will make later can be accounted wisely to avoid over-limit bills.
6. Financial Ability
Your financial ability to pay credit card bills is also important, both you as a primary and additional card holder. You can start calculating how much money you have to spend to pay for a major credit card plus if you have an additional credit card. For this reason, it is wise to use a credit card both as a primary credit card and as an additional credit card.
Consider It Well
Consider carefully before you propose for making additional credit cards, ranging from annual fee fees, sharing limits, additional credit card promos, the need for credit cards, trustworthy people, to our ability to pay later. Do not just because you want to make it easier to do shopping transactions with credit cards, you actually get into credit card debt that is not controlled later. Because every transaction that we do using a credit card later we have to pay sooner or later. Remain wise in conducting all transactions related to our credit card even though it is only an additional credit card.