Allowing someone to access your credit card is not an easy decision. Even family members who you think you can trust can misuse your credit card if you’re not careful.
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For example, this mother lamented her son’s wastage of $600. Her son is her 21 and got her grandfather’s credit card without her mother’s knowledge. $600 is a lot of money right now, but given the circumstances, things could get even worse. is not.
In rare cases, it makes sense to give someone access to your credit card. However, given the risks, we recommend that you exercise extreme caution before doing so.
Think twice before granting access
As a general rule, we recommend that you do not give anyone else access to your credit card. Dennis Silshkov, Professor of Finance, Economics and Accounting at the City University of New York (CUNY) said: “Only people you trust and with whom you have a strong financial relationship, such as a spouse or partner, should be able to access your credit card account.”
But even when you’re intimately involved with someone, it’s important to set the right expectations, said Sirshkov. Good communication and setting clear guidelines for usage is also important.”
Additionally, most experts agree that credit cards should never be given to teenagers. This is because teenagers are young and often have not yet formed responsible consumption habits. Instead, it’s often best to start kids off with cash or a debit card, so there are strict limits on spending.
The bottom line is that you shouldn’t casually hand over your credit card only to people who want it. Think carefully about your card choices and discuss when and how you should use your card with those who have access to it.
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Who should have access to your credit card?
As we have established, you should think carefully before giving anyone access to your credit card. However, there are certain situations where it makes sense to do this. “For example, if you need someone to do the shopping for you while you’re traveling, or if you’re sharing expenses with your partner or family,” says Sirshikov.
There are some specific scenarios where sharing a credit card makes sense, but be careful. “In limited cases, like seniors who need someone to buy groceries, it may be a necessary choice, but in most cases it rarely works,” says Venture. Solomon Lax, CEO of capital firm Revened, said.
On the other hand, some experts say only your spouse should have access to your credit card. At least both you and your spouse are usually responsible for bills, says Jennifer Streak, Business Insider’s Senior Personal Finance Reporter. increase.
There is no universal agreement as to who should have access to your credit card or when it is best to use it. Still, the overarching theme is that you should think carefully before granting access to anyone. Please check whether
Pros and Cons of Allowing Credit Card Access
As with most financial decisions, giving someone a credit card has pros and cons. Let’s take a quick look at the pros and cons.
comfortable: Sharing a credit card can be useful. For example, if you and your spouse share finances, you are responsible for both partners charging their credit cards.
help people in need: You may not be able to shop physically due to illness, injury, or old age. In situations like this, it helps to grant access to your credit card to buy what you need.
can damage relationships: If you give your credit card to a friend or family member and they misuse it, you risk damaging that relationship. In extreme cases, your relationship can be permanently damaged.
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This article originally appeared on GOBankingRates.com: Experts: Who Should and Should Not Access Credit Cards?