A supplementary credit cardholder is a person who is authorized to use a primary cardholder’s account. They may be a spouse, parent, child or employees of a company.
Also, it can be called an additional or authorized holder. The term means the same thing depending on the financial institution and the credit card.
Each supplementary card displays the name of the additional cardholder. The individual has their own credit card number, but everything is associated with the primary cardholder’s account. The expenses are then posted to the primary cardholder’s account.
Some cards, like the BMO eclipse Visa Infinite* Card , earn 10% more points by adding an authorized user.
Benefits of having an supplementary card
Having an additional card allows you to:
- Simplify the management of expenses for two or more people on a single account
- Collect points faster and in one place
- Easier to reach a welcome offer
- Doubling some of the card’s benefits
Depending on the promotion, the cost of additional cards may also be refunded.
For example, the American Express Gold Rewards Card and the Scotiabank® Passport Visa Infinite* Card provide the first additional card free of charge.
Subscription of a supplementary card
When applying for an additional card, the surname, first name, telephone number and date of birth are requested.
Care should be taken when selecting a supplementary cardholder, as the primary cardholder is responsible for all expenses, fees and interest. The additional cardholder can even get a cash advance, thanks to the card. Even if all this is not wanted by the primary cardholder! It is therefore a risk to be taken into consideration.
Depending on the credit card issuer, up to 3 or … 99 additional cardholders can be added, such as the American Express Business Edge Card.
Supplementary card subscription and credit report
An additional cardholder does not negatively affect the credit report. In fact, it is not considered a “borrower” on the account.
The credit bureau will not see the additional card application. So, taking out an extra card is useless if you want to improve your credit record.
It is only the primary cardholder who is responsible and his or her credit report that was affected when the primary card was purchased.
It should be noted that cooperatives like Desjardins operate differently. The additional cardholder is a co-holder and is also responsible for credit card payments. The additional Desjardins credit card will appear in the joint owner’s credit file. There may be a hit at the credit bureau and an impact on the credit file. You must therefore be vigilant and choose your co-investor carefully.
Have a supplementary card and have a future welcome offer from the same card
Having an additional card does not in any way prevent you from being a future primary cardholder and receiving that future welcome bonus.
The person can even have two credit cards with the same name. Or by being an additional cardholder (with your spouse for example) and being a primary cardholder.
Responsibility for expenses
An additional cardholder is not responsible for payment, reimbursement of the Primary cardholder or repayment of the debt.
It should be noted that an additional cardholder can make a payment to the credit card account.
In addition, the additional cardholder cannot:
- Have access to the monthly statement, account balance, and transactions of other additional users of the primary card
- Redeeming points or cash back
- Change important information (address, name, credit limit, etc.) of the main account.
However, it may have access to its own transactions.
On the primary cardholder’s statement, the additional cardholder’s expenses are clearly indicated, along with the name and number of the additional card, as in this example:
Cancellation of the card
The primary cardholder may withdraw access and cancel the additional card at any time.
In addition, if the main account is closed, then the other additional card(s) are cancelled accordingly.
Benefits of the additional card
Additional cardholders can enjoy the same benefits, depending on the card. This may include free baggage, airport lounge passes or travel insurance.
For example, an additional TD Aeroplan card provides Air Canada benefits. This is true even when the person is traveling without the primary cardholder.
This includes the first free bag for her and up to 8 travel companions. The additional cardholder will be asked for their Aeroplan membership number to link the correct benefits to the correct person.
Then, depending on the card, an additional cardholder can also take advantage of medical and travel insurance, even if they are not traveling with the primary cardholder. However, we recommend that you read the insurance certificate carefully as there are very specific conditions.