Should You Allow Other People To Use Your Credit Card?

Should you allow other people to use your credit card? You may feel like being the good samaritan and think that you are doing another person a favor. But the truth is you're just complicating both of your lives.

What is the big deal if you allow other people to use your credit card? After all, you could be relatives, close friends, and you probably trust the other person so much! By the way, have you read my other post about outsourcing work? There, I mentioned something about trust... In case you haven't read it let me repeat what I quoted there from a book author.


How do you really know that the other person will pay? Do you have his credit records? Has he borrowed money from you and paid it back on time? Was he able to pay you back on time consistently or was there a time he flaunted?

The thing with credit cards and letting people use your credit card is that you are lending money that's not even yours. It's easy to care less about the money you don't own, right? It's like lending a newly bought book and then to find out when the other person returns it that it's already worn out... You're disappointed because you know the other person takes care of things diligently but then you found out that he lent it to someone else.

Some people might try to make you feel better by saying that they will pay for the interest. But it's more than money! We're speaking about credit cards here and that's money borrowed from a company. Credit card debt is more than just about money if you don't manage to pay it on time (or not manage to pay at all)... It's your reputation on the line!

Another problem with making other people backride on your credit card is it's really hard to ask for payment. People will get defensive... It's man's true nature when they feel threatened (i.e. threatened to pay back).

For your own protection, here are some guidelines just in case you cannot say no:

Credit Card Lending Guidelines

Just in case you got no choice but to lend your credit card to other people for whatever complicated reason that is, I can only advise you the following:


Ask for payment regularly - Nicely and constantly remind for payment 2 to 3 weeks before the due date. This is to give the person ample time to look for a solution just in case something bad happens and he loses his regular income stream to pay you back. You may have to pay on his behalf first so this also gives you enough time to look for alternatives.

Avoid long term/staggered payments - One reason to avoid this is to rid of yourself the headache of collecting payments each month. Besides, the sooner the debt ends then the less risk you'd have to deal with delayed payments.

Ask for an interest - Because DEBT IS NOT FREE according to Mariusz Skonienzky in his stock investing book and that is something to keep in mind and something to put in your borrower's mind as well.

Be conservative - It's not so bad to be very conservative with money especially with your credit card and when it's used on online transactions. One false move and it could get you to trouble... Have your due diligence in check all the time!

I cannot tell you to "allow" or to "not allow". I will leave it to your judgement, it's your call because after all, you know the people around you more than I do. As they say, it's not hard to sell... It's harder to collect payments!