Adding supplementary credit cards — credit cards tied to a primary credit card account — can be a good way to help someone establish credit. For example, adding a supplementary credit card for a child could help them build credit, by giving them the benefit of a primary cardholder’s good credit history.
Still, it’s important to keep in mind that the primary cardholder is responsible for any charges made by authorized users on the account, including those with a supplementary credit card.
Read on to learn more about who can benefit from a supplementary credit card and the pros and cons of adding an authorized user to your account.
Table of Contents
- What Is a Supplementary Credit Card?
- How Do Supplementary Credit Cards Work?
- Who Needs a Supplementary Credit Card?
- Pros and Cons of Supplementary Credit Cards
- Do Supplementary Credit Cards Affect Your Credit Score?
- How Much Do Supplementary Credit Cards Cost?
- Applying for a Supplementary Credit Card
- Alternatives to Supplementary Credit Card
- FAQ
Key Points
• Supplementary credit cards, also known as authorized user cards, are secondary cards tied to a primary cardholder’s account.
• Primary cardholders maintain complete financial responsibility for all charges made by supplementary users, regardless of who makes the purchases on the account.
• Used responsibly, supplementary credit cards could positively impact credit scores of individuals with poor or no credit history, although irresponsible use can damage both primary and secondary cardholders’ credit.
• Reward earnings rates are the same as those on primary cards, with benefits typically going to the primary cardholder regardless of which user generates the charges.
• Primary cardholders must request supplementary cards from issuers directly, as supplementary users cannot apply independently for authorized user status.
What Is a Supplementary Credit Card?
A supplementary credit card, also known as an authorized user credit card, is a secondary credit card tied to the account of an existing user. The existing user, who is the primary cardholder, could be a trusted friend, family member, or caregiver. The primary cardholder is responsible for all charges made by any authorized users or supplementary credit card holders.
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How Do Supplementary Credit Cards Work?
When you add a supplementary credit card to your credit card account, your credit card issuer will send a new physical card. They will typically mail the card to the address of the primary cardholder in order to prevent fraud.
In some cases, the supplementary credit card number will be the same as the card number of the primary credit card. In other cases, it may have a different number. Either way, all charges made on the account — including those made by supplementary cardholders — are the responsibility of the primary cardholder.
Supplementary Credit Card Annual Fees
For many credit cards, there is not a charge to add a supplementary credit card or authorized user. However, some premium cards, such as The Platinum Card from American Express, do charge an annual fee for additional cards.
Supplementary Credit Card Sign-Up Bonuses
Typically, on many cards, there is not a sign-up bonus or welcome offer for adding a supplementary card user. There may sometimes be targeted bonuses on certain cards. But generally speaking, if you want to enjoy credit card bonuses, you must apply as the primary account holder.
Supplementary Credit Card Earnings and Redemption Rates
The earnings rates for supplementary credit cards are the same as the rates for the primary credit cardholder. Because the primary cardholder is financially responsible for all charges, they will typically receive the benefits of rewards, regardless of which account makes the charges.
Who Needs a Supplementary Credit Card?
A supplementary credit card can be useful for someone who does not meet the credit card requirements to qualify for a credit card on their own.
For instance, you can get a supplementary card for a child to help them establish credit. Adding them to your account also offers an opportunity for you to teach them the ins and outs of using a credit card responsibly.
You might also add a trusted friend or family member to your account to help them build their credit score — although this will depend on the primary cardholder keeping the account in good standing. Another reason you might add an authorized user to your account is to allow them to take advantage of travel or other benefits when you are not with them.
Pros and Cons of Supplementary Credit Cards
While there are benefits to supplementary credit cards, there are also downsides that are worth noting. Consider these pros and cons.
| Pros of Supplementary Credit Cards | Cons of Supplementary Credit Cards |
|---|---|
| May help those with poor credit or no credit history to build or positively impact their credit score | Primary cardholder remains financially responsible for all charges |
| Generally, with many cards, there is no annual fee to add a supplementary credit card | Could damage the credit of the primary and/or secondary cardholder if used irresponsibly |
| Can earn additional rewards from the spending of multiple people | Some cards may charge a fee to add an authorized user |
Do Supplementary Credit Cards Affect Your Credit Score?
Yes, using a supplementary credit card can affect the credit score of both the primary and the secondary user. Depending on how a credit card is used, the effects could be either positive or negative.
If all cardholders on the account use their credit card responsibly, a supplementary credit card could have a positive impact on their credit scores due to how credit cards work. However, if the supplementary cardholder makes charges that the primary cardholder can’t repay, both of their credit scores could go down. Similarly, if the primary cardholder fails to make on-time payments, that could hurt the supplementary cardholder’s credit rather than helping it.
This is why it’s important that both cardholders are on the same page when it comes to credit card rules and best practices.
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How Much Do Supplementary Credit Cards Cost?
In many cases, there is no charge for adding supplementary credit cards or authorized user cards. However, some credit card issuers do charge an additional fee for adding supplementary cards. Make sure to check with your issuer before ordering one.
Applying for a Supplementary Credit Card
Because supplementary credit cards are tied to the account of the primary cardholder, the person being added to the account can’t apply for a supplementary credit card directly. Instead, the primary cardholder will need to request an additional card from the issuer.
To do so, the primary cardholder can either call the customer service number listed on the back of their credit card or request an additional card through their online account or app.
Alternatives to Supplementary Credit Card
Opening a supplementary credit card may be a good way to help a family member build their credit, but it does come with some risk. One alternative to a supplementary credit card is for the other person to open a secured credit card. These cards are designed to help people build credit and are generally easier to qualify for those with a slim (or no) credit history.
The way secured credit cards work is that the cardholder deposits a certain amount of money into a bank account with the card issuer to “secure” the account. The amount they deposit is their credit limit, and if they pay their bills on time consistently, their credit may be positively impacted.
The Takeaway
Supplementary credit cards, or authorized user cards, are additional cards tied to the credit card account of a primary cardholder. When used responsibly, they can help the authorized user build or establish credit. However, the primary account holder is responsible for all charges made by supplementary cardholders, so there is also some risk if the supplementary credit card is used irresponsibly.
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FAQ
Are bills paid with the card number of the primary or supplementary card?
The card numbers of the primary and supplementary cards are both tied to the primary cardholder’s account. As such, the primary cardholder is responsible for all charges made, including by authorized users.
Is a supplementary credit card the same as a joint card?
No. A joint credit card account allows two people to use the same credit card account, with both account owners holding responsibility for all charges made to the account. In contrast, a supplementary credit cardholder is not responsible for charges they make. Instead, only the primary cardholder is financially responsible for all charges made by any user.
Who is responsible for a supplementary credit card?
The primary account holder is responsible for charges made by any and all authorized users. Any secondary or supplementary cardholders are not considered financially liable for any charges they make.
Does a supplementary card affect credit score?
Yes, having a supplementary card can affect a person’s credit score. It may help build credit when used responsibly. But because the primary cardholder is ultimately responsible for all charges, their credit could suffer if an authorized user uses the card irresponsibly. An authorized user could also see their score be negatively impacted if the primary account holder fails to manage their account responsibly.
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