Have you ever trusted a family member or close friend with your credit card?
Many Americans have. According to new data from CreditCards.com, about half of current and former cardholders have allowed someone else to use their credit card.
But it’s extremely risky. Nearly one-third of these generous cardholders have had a negative experience. CNBC’s Darla Mercado has more:
Six out of 10 people said that they would allow an immediate family member borrow their credit card. Nine percent said they have let friends use their cards.
“When it comes down to it, if you lend someone your card, you have a one in three chance of getting burned,” said Matt Schulz, senior industry analyst at CreditCards.com.
The site estimated that 36 million individuals have had negative results when allowing a third party to use their credit card. The most common problem reported was overspending, followed by not getting paid back and not having the card returned.
Is your generosity really worth that higher bill or not getting paid back?
In Schulz’s words: “Ultimately, you’re better off just saying no. It may make for an awkward conversation, but it’s better than finding yourself in a financial mess.”
He’s got that right. Just say no.