When the main card or supp card holder dies

Credit cards have been a common financial tool for many Singaporeans today. However, not many understand the implication if the main card or suplementary card holder dies.

1. If the main card holder dies

When the bank is informed of this, it will send a letter to the supplementary card holder to inform that BOTH the main and supplementary cards will be cancelled. The supplementary card holder will only be liable for transactions incurred under the supplementary card account. The bank will also file a caveat on the main card holder's estate to recover the outstanding amount incurred under the main card account.

If the card holders have an existing installement plan with certain merchants, the plan will be terminated and the cost incurred will most likely be bear by the card holders.

2. If the supplementary card holder dies

The bank will inform the main card holder that the supplementary account will be cancelled, and the main card holder will be liable for transactions incurred under the supplementary account.

Above information shows that a card holder's death can have financial implications to the family members, who happen to be the supplementary card holders (or vice versa). It is recommended that credit card should be applied individually rather than through supplementary card's route.

One client said to me: "But my income is not enough to apply for such cards, therefore I want my dad to issue me a supplementary card."

My simple reply: "Then, wait till you earn that kind of income to apply one yourself."

*In Singapore, excessive credit debts is one common problem that leads to bankruptcy and family break down.