Designed for you and your loved ones, family credit cards are an excellent way to manage finances. They allow the primary cardholder to extend credit to other members of the household:
- Children (18 and above)
- Spouse
- Parents
- Anyone else they choose to include
The main benefit of this card is it simplifies budgeting, consolidates expenses, and helps keep track of all the monthly spending. Another perk is that all the family members can earn reward points and benefit from it. Here’s your ultimate guide to family credit cards.
Basics of Family Credit Cards
A family credit card is a great way to meet the umpteen purchase requirements of your family. You will remain the primary cardholder, and you can get supplementary cards that your family can use. Just as the workload in an office is divided amongst team members, you share your credit limit with family members using this card to meet myriad obligations.
As supplementary cards share the limit of the primary card, you (the primary cardholder) will be responsible for the bill payments. This means your kids or spouse can shop, dine or make payments within a fixed limit. Some cards allow you to fix different limits for each family member. This way, you can control the spends and pay the bills by the due date in the next billing cycle.
In short, with this family credit card, you can allow your family to have:
- Financial independence
- Reward points and cashback
- Emergency funds
When your family members are enjoying the above-mentioned benefits, you, too, can have the following benefits, such as:
- Easy management of family finances
- Keep spending of all members under control
- Better credit score
- Thriving credit history
How to Apply for Family Credit Cards
To get the best credit card for you and your family, follow these steps:
Step 1: Compare Cards and Add-on Offers
Based on the issuer you are choosing and the type of card, you can get a lot of different benefits. Try to find a credit card that gives added benefits on add-on cards and makes managing the cards easier via a mobile application. Also, choose a card that charges a low fee to issue add-on cards.
Step 2: Look for Eligibility Criteria
Once you have found a card you want to apply for, figure out whether you meet the eligibility criteria set by the issuer. Generally, the criteria are set as follows:
- The applicant should have a good credit score above 750
- The applicant must be above 18 years of age
- The applicant must have a steady income and meet the minimum requirements, if any
Step 3: Get the Documents Ready
To prove your eligibility for a family credit card, you will have to submit documents like:
- ID proof
- Address proof
- Income proof
- Photographs
Step 4: Apply for Add-on Credit Cards
Once you have received your primary credit card, or if you already have it, follow these steps:
- Log in to your credit card account via the online account or the mobile app
- Select the ‘Add-on credit card’ option
- Enter the details of the family member
- Submit your request
- Pay the add-on card fee, if any
Why Choosing Add-on Cards is a Good Option?
Enjoy Zero or Minimal Fees
Getting a new credit card for each family member means paying extra annual and joining fees. You can skip this with zero or minimal fees charged for issuing add-on credit cards. This allows you to share credit facilities without the worry of hidden charges, making it easier to manage family expenses.
Enjoy Instant Fund Access in Emergencies
Give your children or elderly parents an add-on card for peace of mind during emergencies, ensuring they can access funds when needed without delay.
Get an Opportunity to Build Your Credit History
If someone in your family is new to credit, adding them as a secondary user helps them establish their credit history. If you give these cards to children, they can start learning about financial responsibility early.
Boost Your Rewards
The more you use the card, the more points you earn. By adding additional cardholders, you can increase your spending power and earn rewards faster due to more transactions.
Stay on Top of Spending
Keep track of every purchase made with the add-on card. With all charges reflected in your statement, you can easily monitor how your family members are using the card, ensuring spending stays in check.
If you are looking for one such card, consider the One Credit Card and the MyFamily feature it offers. With this feature, you can add 5 of your family members to your account and accumulate more reward points.
You can also add a separate limit on the spending threshold for each of the added members. While you can restrict your college-going daughter’s budget to ₹2,000, you can allow your spouse to have 100% access to the credit limit. In this way, you know how much your family can spend and track all their purchases through the OneCard App.
The best part of this credit card program is that it does not have any joining or annual charges. When your family is using these add-on cards, there will be no splitting of the rewards. Both you and your family members can enjoy separate offers and enjoy 5X reward points on the top two spending categories. To get this stylish metallic credit card, apply now.