In today’s fast-paced world, credit cards have become an essential financial tool for many Filipinos. Whether for emergency expenses, online purchases, or rewards points, credit cards offer a level of convenience that cash can’t match. A lesser-known feature of many credit cards is the supplementary credit card. It’s an excellent option for families, offering shared benefits and added financial flexibility. If you’re considering one, here’s everything you need to know about supplementary credit cards in the Philippines.

What is a Supplementary Credit Card?

A supplementary credit card is an additional card linked to the account of a principal credit cardholder. Essentially, it gives another person access to the credit line of the primary account holder. While it functions like a regular credit card and allows the supplementary cardholder to make purchases, the key difference lies in control and responsibility: the primary cardholder retains full accountability for all transactions made using both the principal and supplementary cards.

This feature is particularly beneficial for families, where a parent might want their child or spouse to have financial access without applying for their own credit card. It’s also a great option for helping loved ones develop responsible spending habits or for ensuring financial security in emergencies.

Who Can Get a Supplementary Credit Card?

In the Philippines, banks allow the issuance of supplementary cards to individuals chosen by the primary cardholder. Typically, these are family members or trusted individuals. Here’s a breakdown of common eligibility criteria:

1. Spouses: Sharing financial responsibilities is common in marriages, making supplementary credit cards a practical choice for couples.
2. Parents: Supplementary cards are ideal for elderly parents who may need financial access for medical or household expenses.
3. Children: Many banks offer supplementary cards for children, provided they meet the minimum age requirement, usually 13 to 15 years old. These cards can be an excellent way to teach kids about budgeting and financial responsibility.
4. Trusted Individuals: If you have a close friend, business partner, or employee you trust, you can provide them with a supplementary card to assist with specific expenses.

Documents such as valid IDs and proof of relationship (if required) may need to be submitted during the application process.

Benefits of Supplementary Credit Cards

A supplementary credit card can offer numerous advantages to both the primary and supplementary cardholders:

1. Shared Credit Limit
   The supplementary card uses the credit limit of the primary account. This shared credit limit ensures that spending across all cards remains within the boundaries set by the bank. It’s a great way to provide financial support to others without opening separate credit lines.
2. Spending Control
   Many banks allow the primary cardholder to set a spending cap for each supplementary card. For example, a parent can assign a monthly limit for their child to manage allowances, school expenses, or entertainment costs responsibly.
3. Convenience for Family Members
   Whether it’s for grocery shopping, dining out, or emergency expenses, supplementary cards provide convenience for family members who may not have their own income or established credit history.
4. Earn Rewards Faster
   Transactions on supplementary cards contribute to the primary cardholder’s rewards. This can significantly accelerate the accumulation of points, cashback, or air miles, especially in families with high spending.
5. Emergency Use
   Supplementary credit cards can be a lifesaver during emergencies, particularly for family members traveling or living in areas where cashless payments are essential.

Considerations Before Getting a Supplementary Credit Card

While supplementary cards offer many benefits, they also come with risks and responsibilities:

1. Spending Habits
   Be mindful of the supplementary cardholder’s spending behavior. Irresponsible use could max out the credit limit, leaving the primary cardholder liable for repayment.
2. Financial Responsibility
   The primary cardholder is accountable for all transactions on the account, including those made using supplementary cards. If the supplementary cardholder overspends or fails to adhere to agreed-upon limits, it could lead to financial strain.
3. Fees and Charges
   Some banks charge annual fees for supplementary cards, while others offer them for free. Always review the terms to ensure you’re not incurring unnecessary costs.
4. Credit History Impact
   Payments for all transactions, including those made on supplementary cards, must be made by the primary cardholder. Late payments or unpaid balances can harm the primary cardholder’s credit score, affecting their financial reputation.

How to Apply for a Supplementary Credit Card in the Philippines

Applying for a supplementary card is a straightforward process:

1. Check Eligibility
   Verify with your bank if your credit card account qualifies for supplementary cards. Most credit card issuers in the Philippines provide this feature, but eligibility criteria may vary.
2. Submit Documents
   Prepare and submit the required documents for both the primary and supplementary cardholders. These usually include government-issued IDs and additional proof of relationship or identification for minors.
3. Set Spending Limits
   Many banks allow you to set spending limits for supplementary cards during the application process. This ensures better control over expenditures.
4. Activate the Card
   Once approved, follow the bank’s activation instructions. This often involves calling a hotline or using the bank’s mobile app or website.

Popular Banks Offering Supplementary Credit Cards in the Philippines

Here are some major banks in the Philippines and their features for supplementary credit cards:

1. BDO (Banco de Oro)
   • Allows up to 6 supplementary cards under one primary account.
   • Provides flexible spending controls for each supplementary cardholder.
2. BPI (Bank of the Philippine Islands)
   • Offers supplementary cards with customizable limits.
   • Often waives supplementary card fees for the first year.
3. Metrobank
   • Provides spending alerts and monitoring tools for supplementary card transactions.
4. Citi Philippines
   • Offers supplementary cards without additional annual fees for select products.
   • Widely accepted internationally, making it ideal for family members who travel often.
5. RCBC Bankard
   • Comprehensive tools for managing supplementary card limits and tracking expenses.

Final Thoughts

A supplementary credit card is a practical and convenient financial tool that allows families to share financial resources while maintaining oversight and control. It’s perfect for teaching financial responsibility, managing family expenses, or providing financial access to dependents.

However, like any credit tool, it requires careful planning and responsible usage. Always evaluate your family’s spending habits, the potential risks, and the costs associated with supplementary cards. By choosing the right bank and setting clear guidelines, you can maximize the benefits of supplementary credit cards and ensure a smoother financial journey for your loved ones.

Do you use supplementary credit cards? Share your experiences and tips in the comments below!