52 Percent of American Parents Let Their Children Borrow Their Credit Card for Online Purchases; 48 Percent Regret Doing So

New CompareCards report finds parents frequently lend kids their cards but often get burned

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Oct 24, 2018, 09:30 ET

CHARLOTTE, N.C., Oct. 24, 2018 /PRNewswire/ -- CompareCards by LendingTree today released the findings of its survey on kids and credit cards. CompareCards asked American parents how they handle their children's use of credit cards, from what they consider to be the perfect age for getting a first card to whether their kids have ever used their cards to buy something without their knowledge.

"The survey found that Americans have been burned by the volatile mixture of kids and credit cards," said Matt Schulz, Chief Industry Analyst at CompareCards. "While most Americans feel that you should wait until you're in your 20s to get your first credit card, they also think that it's OK to let your child use your credit or debit card to make online purchases, even though it often doesn't go well."

Key findings

52 percent of Americans with kids under 18 have let their kids borrow their credit or debit card for online purchases.
48 percent of those parents have regretted loaning their card to their kid, and men are far more likely than women to say so.
29 percent of Americans with kids under 18 said that their child had used their card without their permission, and men are the most likely to say they've been burned.
The perfect age to get your first credit card: 21 years old, according to survey respondents.

52 percent of Americans with kids under 18 have let their kids borrow their credit or debit card for online purchases.

More than half of Americans have let their kids use their credit or debit card to make online purchases, and men are far more likely to have done so. Two-thirds of men (66 percent) say they've done so, compared with just 43 percent of women.

"It's never been easier for kids to buy," said Schulz. "As online retailers keep simplifying the buying process and innovations such as in-app purchases become more widespread, that trend is only going to continue, and it's clear that millions of American parents have embraced it."

48 percent of those parents have regretted loaning their card to their kid, and fathers are far more likely than mothers to say so.

Men are nearly three times more likely than women to have regretted lending their credit card to their child. More than 4 out of 10 men (44 percent) said they've regretted doing so; meanwhile, just 15 percent of women said the same.

29 percent of Americans with kids under 18 said that their child had used their card without their permission, and men are the most likely to say they've been burned.

The survey found that parents who knowingly lend their card to their kids aren't the only ones getting burned. Nearly 3 in 10 Americans with kids under 18 (29 percent) said their child had used their credit or debit card without their permission to buy something online.

The perfect age to get your first credit card: 21 years old.

When should someone get his or her first credit card? The median answer was 21 years old. That was also the most commonly given answer, though nearly 10 percent of respondents say they believe people should never get a credit card.

At what age did Americans actually get their first credit card? Again, the median answer is 21 years old. The most common answer, however, was 18 years old, given by 22 percent of respondents.

Other highlights:

7 in 10 Americans said their parents were good financial role models, but younger Americans were most likely to disagree.
69 percent of parents with kids under 18 said that at least one of their minors had at least one financial account. Savings accounts were the most common choice.

"As any parent knows, there's rarely a one-size-fits-all answer when it comes to kids," said Schulz. "The decision to lend ultimately comes down to knowing your kid well and communicating your expectations clearly. It's incredibly important that our sons and daughters know what is expected of they and what the consequences will be if they drop the ball. And it is far better to have those discussions in advance than it is to wait until after disaster strikes."

To view the full report, visit https://www.comparecards.com/blog/kids-and-credit-cards/.

About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.

About CompareCards:
CompareCards' mission is to help people make smarter, more informed, healthier financial decisions based on deeper knowledge of financial offers. Each month, over 2.9 million visitors come to CompareCards' website to independently compare credit cards side-by-side and choose a credit card based on interest rate, reward benefit, cost savings, and other factors that are important to each person. CompareCards provides easy-to-use, objective tools and educational resources that help people do everything from making credit card comparisons to managing their credit health. For more information, please visit www.comparecards.com.

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SOURCE CompareCards