Free Additional Credit Cardholders

When you have joint cardholders on one account, both are assessed for their creditworthiness on application – and both are jointly responsible for any spending on the account. That means, if there is a default on the account, both cardholders are liable. Most Australian card providers don’t offer joint accounts on personal credit cards.

That's why most cardholders who want multiple cardholders on one account nominate one person to be the primary cardholder, and then add the other person as an additional cardholder. When this is the case, the primary cardholder is the one who is assessed for creditworthiness, while additional cardholders simply need to meet the card provider’s age eligibility requirements.

In terms of liability, only the primary cardholder is liable for the account. That means any spending – whether it is done by the primary cardholder or the additional cardholders – is the responsibility of the primary cardholder alone. As for building – or knocking down – credit, only the primary cardholder’s credit will be affected.

As the primary cardholder on your credit card account, you are in charge. That means you decide who you want to add to your account as an additional cardholder. You also decide when to cancel additional cardholder accounts, and you can do so at any time, according to your card’s terms.

If you want to add an additional cardholder to your account, you may be able to do so when you apply for the card, or you may have to fill in a separate application once you’ve been approved. If you’ve had the card a while, you simply complete the application (either online or on paper, as your card provider allows).

While additional cardholders are not subject to a credit check, they will have to meet your card provider’s eligibility requirements. These may stipulate additional cardholders are residents or citizens of Australia, who are aged 16 or over. In some cases, additional cardholders must be aged 18 or over.

For each additional cardholder, you will have to provide all relevant personal details as requested by your card provider. These will typically include the cardholder’s full name, date of birth, residential address and contact details. Other details – such as employment status and income – may also be required, along with supporting documentation.

Once you have submitted your request, your card provider will assess all the details and documentation provided, to decide whether or not to add your requested additional cardholder to your account. As long as all goes well, your additional cardholder will receive their card in the post within one to two weeks.

You can remove an additional cardholder from your account at any time. You may be able to do this either by calling your card provider, or if there are facilities available, you may be able to process the request online. Your additional cardholder can also cancel their card at any time, should they choose to do so.

Unlike business cards, which allow the primary accountholder to set individual spending limits for each cardholder, with a personal credit card, there is no way to do this. Instead, there is one overall credit limit, which is shared by all cardholders.

No. Each card on the account has a different number. Why? With a different number on each card, it makes it easier to identify who made each transaction on the account. When you receive the monthly statement, you should be able to see which card was used to make each transaction, allowing for easier account management and tracking.

Card providers usually have certain criteria additional cardholders must meet. Typically, this means they must be of a certain age, either 16 or 18. Check your card’s terms for further information regarding additional cardholder criteria. For the most part, card providers don’t specify there must be a certain relationship between the primary and additional cardholders. That means you are free to add who you like to your account, whether that’s your partner, your kids, other relatives, or your friends. Obviously, you should only add someone who you trust (see liability).

This really depends on the card. Some cards only allow for one additional cardholder, while others allow up to nine additional cardholders. It’s worth noting that some credit cards don’t allow any additional cardholders.

While access will vary from card to card, most cards restrict additional cardholder actions. As an example, additional cardholders cannot request a credit limit increase or make changes to the account.

As for account visibility and security, primary and additional cardholders typically have their own separate card PINs and online account access. Depending on the card, the primary cardholder may be able to place limits on additional cardholder spending, while restricting the type of transactions additional cards can make.

Adding an additional cardholder can boost spending on the card account, allowing the primary cardholder to earn more rewards. All rewards points earned on the account are channelled to the primary cardholder’s rewards balance. From there, it’s up to the primary cardholder how to redeem them. Some of the best ways to earn frequent flyer points is with an additional cardholder.

Again, this will depend on the card. In terms of complimentary insurance covers, additional cardholders can typically benefit from the same cover as primary cardholders, as long as they meet the card’s terms (i.e. use their card to cover the cost of travel to benefit from travel insurance on their trip).

However, not all extras are provided to additional cardholders. As an example, cards that offer travel credit or airport lounge access may only provide those benefits to primary cardholders. If you are unsure about what your additional cardholders will have access to in terms of extras, contact your card provider.

Regardless of how many additional cardholders are added to the account, the primary cardholder remains liable for all cardholder spending. So, whatever your additional cardholders spend on your card, you are the one who must make sure that spending is repaid.

When a card provider adds an additional cardholder to an account, they may carry out an identity check, but will not typically carry out a credit check. As you are the one who is liable for the account, the credit history of your additional cardholders is not really relevant to your provider. While this can be beneficial under some circumstances – for example, when you want to provide access to credit to someone whose credit is not good enough to get approved on their own – it does come with the drawback that as an additional cardholder, they cannot build credit by being responsible with their card.

As the primary cardholder, only your credit will be affected by your card (which is another reason to only add additional cardholders that you trust).

While there are plenty of cards that allow additional cardholders to be added at no extra cost, some cards charge an annual fee for each additional cardholder on the account. Usually, this fee is lower than the annual fee for the primary cardholder, but it may still affect the value you receive from the rewards and extras gained from adding additional cardholders.