Keeping it Safe: What to do When Others Want to Borrow Your Credit Card

If you are lending out your credit card, follow these tips to keep your credit card safe

It is not unusual as somebody that has one or more credit cards to occasionally get a request by a friend or family member to borrow, or make a transaction on your card. Most of the times I have been asked by someone whether they can use my credit card it has been to book tickets to a concert, or sports event.

Although credit card sharing is not a recommended practice, paying for something on behalf of someone else can be done, as long as you are in full control of the credit card usage.

Credit Card Sharing

I personally am not a fan of anyone else using or having access to my credit card. There are a number of reasons for this:

Being paid - Essentially when you pay for something for somebody on your credit card you are lending them money. That is why unless you really know and trust that individual you should think twice before getting your card out of your wallet.

Of course if the person accessing your credit card has the cash to pay you back immediately then I am normally a little more enthusiastic about letting the transaction go ahead.

What if they lose your number? – There is always a chance when you physically lend someone your credit card that they may lose it or have it stolen. Most cases of fraudulent credit card usage occur when somebody has lost their credit card and somebody else has picked it up, and then used it illegally.

If somebody wants to pay for something with my credit card I will only do it as long as the credit card never leaves my sight. That way I am fully responsible for the credit card usage.

Regular usage - Sometimes if you let someone use your credit card once you will find whenever they want to book tickets to an event, or make a hotel reservation you get a phone call. The more you engage in credit card sharing the more at risk you leave yourself.

So What Should You Do?

There are a few tips that should make credit card sharing less of an issue if you stick to them at all times:

1. Only ever use your credit cards to help close family or friends that you trust 100%. The fewer people that make transactions with your card the better.

2. Be in control of the transaction. If you are paying for something over the phone make sure it is you that is making the call. If you are buying something over the Internet then make sure it is you that processes the transaction.

If you are the one controlling the transaction then you can be certain as to what is spent, and what it is being spent on.

3. Consider additional card holders. Some lenders allow you to have a family member as an additional card holder. They have access to your account but can have a different credit limit.

Sometimes that can be suffice to give a family member the benefit of your credit card without putting much of your credit limit at risk.

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