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WHAT IS PRIMARY CARD HOLDER?

The usage of credit cards and debit cards has become very popular recently. Lots of people have started using credit cards thanks to its many advantages. There is no need to carry around money and hence there is no question of losing money. Also, one gets a period of credit when most of these companies do not charge you any interest. No wonder that many people opt to carry a credit card rather than money.

However, not everyone can have a credit card. Or rather, one can say that certain conditions and criteria should be met before one will be given a credit card. The most important criterion to be eligible to have a credit card is the fact that you should have a constant source of income every month. This goes without saying as only when you have a proper job or a constant source of income will you be able to pay off the debt. So what happens to those who do not have a job or for others who are studying or for housewives?

One might wonder if it might not be possible for such people to have a credit card. The answer to this question is quite simple. You can get an add-on card from a primary card holder. That is to say that if you are a student and if your father is a working member and has a credit card, you will be able to get an add-on card with your dad as the primary card holder or the primary card user. His credit card from then on would be referred to as the primary card. This concept thus solves the problem for those who do not satisfy the eligibility criteria to own a card.

Now the next question that comes to one’s mind is whether the holder of the primary card will be held responsible if the add-on card holder fails to pay his or her debt. The law for this varies from one place to another. In some parts of Canada, the holder of the primary card will have to take responsibility whereas in some other parts, that is not the case.
It is very important to note that the add-on card holder or the authorized user can be held in no way responsible on the event of the death of the primary card holder. The authorized user need not clear the debt of the user holding the primary card.

The limit on the card has to be shared between both the primary card and the add-on card holders respectively. That is to say that if the limit on the card is $50,000 and if the primary card user has used up $40,000, then the add-on card user can use only up to $10,000. So this is more like a shared usage of money and resources between the primary card and the add-on card holders respectively. Be it the user of the primary card or an add on card, always remember to clear your debts on time.

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