What is a Secondary Card Holder?

A credit card account can be shared by at least two persons. One is the main or primary cardholder while the other is the alternative or secondary card holder. The secondary card holder is an authorized user but is not legally liable to make credit card payments unless he or she is made as a joint card holder. The secondary card holder may be the spouse or direct dependent.

This article talks about the concern of adding another card holder to one’s credit card account; steps in applying for a joint credit card; and, credit card regulations in Canada.

What must be done to add an additional card holder to one’s credit card?

The primary credit card holder has the prerogative to add an additional credit card. In fact, there you can be issued up to a maximum of two for Dollar VISA Card and Dividend Platinum® card; nine for Aerogold®1 VISA Card for Business and bizline® VISA* Card for your spouse, family members or other selected individuals. If you would like to add an authorized user to your credit card account, you must contact CIBC Credit Card Services. They will issue you an authorized user form for completion. Two signatures are required in this form - your own signature and that of the person you are designating as an authorized credit cardholder.

What are the steps in applying for a joint credit card?

If you would like to apply for a joint credit card (primary and secondary card holders), the basis guideline is that there will be two card holders for one account number. The following are the steps for this particular application:
1. Get a credit card application form through by browsing through websites of major credit card companies. You can also check your e-mail for proposals that are frequently sent by credit card firms or go to your local bank or the nearest credit card company's office and file it from there.
2. Once you have your card application, decide on who will be the primary card holder. It is extremely important that you choose the one who has a good credit rating or score.
3. Start filling up the form. This includes your first and last names, social security number, residence and employment address, birth date, annual gross income and details about your job.
4. Flip it over and you will see a section that says Additional Card. Fill up the secondary card holder. The information needed here is very minimal (e.g. First and last name, birth date and social security number).
5. Make sure all the necessary signatory fields are signed.

What are the Credit Card Regulations in Canada?

The Canadian government has implemented a minimum grace period of 21 days for payment of all credit card purchases. As a part of measures to make the banking industry more transparent, the new regulations require that credit card issuers display information about interest rates and grace periods in a clear manner. A summary box on bills has to be included. In addition, there should be a clear indication of the period over which people should pay off their outstanding balances in full in case they only make the minimum monthly payments.
The grace period of credit cards is the amount of time over which a company allows credit card holders to pay their balance in full without charging any interest. This period is very important for each card holder as it has impact on what he is charged. The grace period starts from the billing date up to the maximum number of days allowed before interest is charged. Usually, it is set at a minimum of 21 days. However, this may vary from one company to another. Creditors that offer longer grace periods are to be preferred because they give card holders more time to pay the balance.

Credit Card Balances

The grace period accorded to credit card holders does not cover all types of balances. If the card holder purchases commodities and services using a card that has an outstanding balance, the new purchase may not be covered. This means that only new purchases are covered by the grace period.

References

cibc.com
howtodothings.com
creditcardscanada.com