Additional Cardholder

An ‘additional cardholder’ is someone who you have authorised to have an extra credit card on your credit card account, to enable him or her to make purchases on your credit card.

It’s important to note that this is not the same as a joint account - you remain fully and solely liable for all spending on both cards and repayments by both you and by the additional cardholder. This is in stark contrast to a joint account or a mortgage taken out in joint names, where each party has jointly and severally liability – either party can be sued for the debt, either by themselves or together, the lender can choose.

The way that a credit card account is managed is reported on the credit report of the main cardholder, but not on the credit report of the additional cardholder.

Additional cardholders have very limited rights even to the extent that they may not be able to obtain any information about the credit card account when contacting the credit card company direct.

Spending by additional cardholder will be reflected in the balance of your account, and will be reported on your credit report as such.

Additional cardholders are usually required to be an immediate family member, be aged over 18 and be living at home with the main cardholder.

The creation of an additional cardholder should no longer create a financial association on your credit report, as there is no ‘financial link’ between you and the additional cardholder.

You can add an additional cardholder to your credit card account either at the time of application, or subsequently upon your request to the card company’s customer services department. No financial checks are usually undertaken on additional cardholders – the credit card company relies entirely on your authority to add the additional cardholder at your sole risk.

Our verdict

If the additional cardholder has no credit record, or is bankrupt or otherwise insolvent, authorising an additional cardholder can provide that person with a means of payment that otherwise would not be available to him or her.

If you are collecting rewards or cashback on a card, then by authorising an additional cardholder, you could earn more quickly.

Remember in all cases you are 100% liable for all spending by the additional cardholder.

No additional benefits or increased limits are given when adding additional cardholders, so a better bet is often for the additional cardholder to apply for their own card if this is possible.

Jargon Buster

Use the links below and the resulting list of terms on the right to locate the term you are looking for. If you can't locate it, please get in touch.

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews