Cash withdrawal question

hoyles10

I have been told that it's looked upon badly if you withdraw cash from a credit card, 1st of all is this correct?

Secondly If it is correct what impact can it have if any on a credit rating?

The reason I am asking is as I said in an earlier post I used my credit card on a betting account. I only put £10 put I have been charged a cash advance fee. Will this be seen as if I have drawn money on my card? I know I technically have but i'm just at the stage where I have repaired quite a bit of a badly damaged credit rating and I don't want this cash advance to bring it down any.

Ritchie74

Yes, gambling does show as cash.

Drawing cash/using quasi cash the once won't do much harm... Account holders who do it regularly look very credit hungry and may have their accounts actioned because of it.
Seriously, don't beat yourself up about it. Just don't do it again (too costly as you have sadly found out).
Also pay off your balance ASAP to limit interest charges (usually c.30+% APR)

sharpy2010

I worked for the Halifax Credit Card company for a few years, it didn't affect the customers Halifax credit score if they withdrew money on the card. The only things that affected the internal Halifax Credit score score once you had the card were late payments, going over your limit and only ever paying off the minimum amount each month.

Nothing else had any impact at all.

Cheers

jonesjw

I note the Post Office credit card doesn't charge a fee or percentage for overseas withdrawals.
So if I load the thing up with cash before going to Thailand on holiday, do you think this will be a good way of withdrawing cash there?

Moggles_2

Regular cash withdrawals make you look financially stretched, but I doubt whether a one-off transaction has any effect

Moggles_2

jonesjw wrote: »

I note the Post Office credit card doesn't charge a fee or percentage for overseas withdrawals, so if I load the thing up with cash before going to Thailand on holiday, do you think this will be a good way of withdrawing cash there?

Personally, I wouldn't risk putting a credit card in credit. Credit cards - other than Egg Money - are not designed to carry a positive balance. Small amounts that arise temporarily (due to a refund, for instance) are okay, but the Ts & Cs of some cards specifically prohibit payments that deliberately place the account in credit.

hoyles10

Thanks for the advice people. Luckily I only put a tenner on my card then a £3 cash advance fee but I won £40 so that's going straight off my balance again

creditcard_g

sharpy2010 wrote: »

I worked for the Halifax Credit Card company for a few years, it didn't affect the customers Halifax credit score if they withdrew money on the card. The only things that affected the internal Halifax Credit score score once you had the card were late payments, going over your limit and only ever paying off the minimum amount each month.

Nothing else had any impact at all.

Cheers

This is incorrect, it does affect the internal score slightly when cash advance is taken:cool:

creditcard_g

hoyles10 wrote: »

Thanks for the advice people. Luckily I only put a tenner on my card then a £3 cash advance fee but I won £40 so that's going straight off my balance again

as long as you dont have an existing balance you are alright as any payments will go towards the lowest rate of interest and so on so cash advance is usually paid off last;)

rb10

sharpy2010 wrote: »

I worked for the Halifax Credit Card company for a few years, it didn't affect the customers Halifax credit score if they withdrew money on the card. The only things that affected the internal Halifax Credit score score once you had the card were late payments, going over your limit and only ever paying off the minimum amount each month.

Nothing else had any impact at all.

Cheers

Sorry that this is off-topic, but does that mean that it doesn't make any difference whether you pay off the minimum amount + £0.01 or the full amount??

sharpy2010

rb10 wrote: »

Sorry that this is off-topic, but does that mean that it doesn't make any difference whether you pay off the minimum amount + £0.01 or the full amount??

Thats one thing that does make a difference.

If you pay the minimum amount only, your internal credit score does not go down, it simply remains the same.

The bigger amount you pay off the balance each month, the higher the internal credit score gets, and the more willing the lender is to increase your credit limit.