Are you the parent of a credit virgin?

It’s only natural to want to do what you can to help your children out, no matter how old they are. However, if you’ve got older kids you’ll know that ‘helping them out’ often means parting with some of your hard earned cash.

We recently discovered that parents are giving their adult children significantly more money now than they were five years ago, with the average amount they pay to support them totalling £3,070 each year (up from £2,200 five years ago)[1]. And it’s not just money that parents are giving their kids – many are taking out credit in their own name to give to their children, on the understanding they’ll pay them back.

This situation – whilst caused by parents with the best of intentions – is creating a generation of credit virgins.

What are credit virgins?

Credit virgins are adults who have no credit history and, according to our research, their ranks are growing, increasing by 9 percentage points since 2012 to 36%.

This isn’t to say that there are loads of people who have no access to credit at all. In fact, 29% of those who have no credit in their own name under the age of 35 have contracts in their parent’s name. This is especially true when it comes to things like mobile contracts, credit cards, loans and rental agreements.

Do you have a credit virgin?

Does any of the above sound like your adult child? If it does, you might want to take our quiz to find out if you’re dealing with a credit virgin or not.

 

 

[1] Noddle commissioned ICM Unlimited to ask a series of questions of parents and adult children, polling a representative GB sample online. The polling ran between 3-4th April 2012 and again between 25th-28th August 2017 (five year gap) with questions repeated verbatim or near verbatim (some additional questions were added).