Menu
18/05/2012
Generous Parents Hurting Grown-Up Children's Credit Rating
Free credit report service Noddle has warned that parents are inadvertently placing their adult children at a financial disadvantage by taking out credit and paying essential bills on their behalf.
They have said that by putting credit agreements, mobile phone contracts, call loans, credit cards and even mortgages in their own names they are preventing their children from developing a credit record.
This has given rise to an estimated 7 million "credit virgins" who have never taken out any form of credit, and makes it more difficult for them to secure loans, mortgages and credit cards in the future, even if they are able to afford them.
In a survey of 2,000 adults, 40% of 20-somethings, 18% of 30-somethings and 22% of 40-somethings had no credit record. The Noddle study suggests the rise in stay-at-home university students, high youth unemployment and prohibitive housing prices are exacerbating the problem.
Noddle founder Tom Ilube said: "Parents have nothing but good intentions when they decide to help out their kids by putting credit agreements in their names and covering living costs, but the irony is they could be putting them at a financial disadvantage in the longer term."
The research showed that two-thirds of parents (63%) provide financial support to their adult children, handing out an average £3,632 each in the past 12 months, while one in 10 say they make monthly payments of £240 to their grown-up kids to cover day-to-day living costs.
(H)
They have said that by putting credit agreements, mobile phone contracts, call loans, credit cards and even mortgages in their own names they are preventing their children from developing a credit record.
This has given rise to an estimated 7 million "credit virgins" who have never taken out any form of credit, and makes it more difficult for them to secure loans, mortgages and credit cards in the future, even if they are able to afford them.
In a survey of 2,000 adults, 40% of 20-somethings, 18% of 30-somethings and 22% of 40-somethings had no credit record. The Noddle study suggests the rise in stay-at-home university students, high youth unemployment and prohibitive housing prices are exacerbating the problem.
Noddle founder Tom Ilube said: "Parents have nothing but good intentions when they decide to help out their kids by putting credit agreements in their names and covering living costs, but the irony is they could be putting them at a financial disadvantage in the longer term."
The research showed that two-thirds of parents (63%) provide financial support to their adult children, handing out an average £3,632 each in the past 12 months, while one in 10 say they make monthly payments of £240 to their grown-up kids to cover day-to-day living costs.
(H)
Related UK National News Stories
Click here for the latest headlines.
01 February 2011
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
New Rights To Benefit Consumers
Consumers should take advantage of new rights aimed at protecting them and encouraging lenders to act more responsibly, Consumer Minister Edward Davey said today as the EU Consumer Credit Directive came into force.
17 December 2004
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
Consumer credit shake-up targets rogue lending
Tough new sanctions on rogue lenders could be introduced under a new Bill introduced in the House of Commons by Trade and Industry Secretary Patricia Hewitt. Measures in the Consumer Credit Bill would create a fairer, clearer and more competitive credit market, by bringing in new rules to give consumers better protection and more rights.
22 April 2004
Lenders warned over 'irresponsible' credit offers
Credit card companies have been warned that there will be no room for irresponsible lenders in the marketplace of the future. According to the Consumer Minister Gerry Sutcliffe, companies must improve data sharing to help promote "responsible lending" and crack down on those who exploit the most vulnerable borrowers.
Lenders warned over 'irresponsible' credit offers
Credit card companies have been warned that there will be no room for irresponsible lenders in the marketplace of the future. According to the Consumer Minister Gerry Sutcliffe, companies must improve data sharing to help promote "responsible lending" and crack down on those who exploit the most vulnerable borrowers.
29 January 2013
Proposal Will Allow Childminders To Accept More Children
New proposals will allow nurseries and childminders in England to look after more children, providing carers qualifications meet new standards. The proposals, due to come into effect in the autumn, would make more childcare places available and reduce costs for parents in the "long term", children's minister Liz Truss has said.
Proposal Will Allow Childminders To Accept More Children
New proposals will allow nurseries and childminders in England to look after more children, providing carers qualifications meet new standards. The proposals, due to come into effect in the autumn, would make more childcare places available and reduce costs for parents in the "long term", children's minister Liz Truss has said.
25 November 2014
Universal Credit To Be Extended To Families
Universal Credit (UC) is to be extended to families for the first time, it has been announced. UC is described as the government's "flagship" welfare reform programme, and prior to this was only available to single people and couples.
Universal Credit To Be Extended To Families
Universal Credit (UC) is to be extended to families for the first time, it has been announced. UC is described as the government's "flagship" welfare reform programme, and prior to this was only available to single people and couples.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
