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Additional Cardholder

Definition of 'Additional Cardholder'

You can authorise other people to have a card issued on your credit card account so that they can spend from your account.

Unlike bank current accounts, the liability for the spending is not joint and several, which means that either party can be held liable for the monies spent on your credit card. The additional cardholder is never liable; you always are, no matter what.

The credit card issued to an additional cardholder is in the name of the additional cardholder - there is no reference on the card to the name of the principal cardholder. For all intents and purposes, a card issued to an additional cardholder looks just like one issued to a principal cardholder.

The credit card number on the additional cardholder's credit card is unique and differs from the credit card number on the principal cardholder's card. Even though the card numbers differ, they all charge the one account, which as mentioned is always in one person's name - the principal cardholder.

The most common use of additional cardholders is for husbands, wives or partners to share a card. Other uses include providing a means of payment to someone who cannot get credit, such as a bankrupt or a minor. Any spending on the card by a bankrupt additional cardholder, or by an additional cardholder who is a minor, remains the liability of the principal cardholder.

For these reasons, only authorise an additional cardholder on your credit card account if you completely trust that person, or are happy to cover their spending without question.

Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.

Credit Jargon Starting 'G'

Credit Jargon Starting 'I'

Credit Jargon Starting 'J'

Credit Jargon Starting 'L'

Credit Jargon Starting 'M'

Credit Jargon Starting 'S'

Credit Jargon Starting 'T'

Credit Jargon Starting 'V'

Credit Jargon Starting 'W'

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