We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
The Forum is currently experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Cash Limit Ratio Poll

rosmersholm
Posts: 65 Forumite
I'm not sure if this topic has been posted about before but I think it would be useful to know more about cash limits as part of credit cards. I could never understand why CapOne were quite happy to let me take all of my credit limit as cash and yet Amex had a strict 20% of credit limit set as my cash allowance.
I know the "cash limit" problem is fundamentally one of risk. For example, newbies to credit would be less likely to be granted a 100% cash limit for fear of withdrawing it all and running off to the hills, but the discretionary (almost arbitrary) decisions about the ratio would be interesting to know more about.
SO - I have created a poll in a naive attempt to understand what is the most common cash limit (as a proportion of credit limit) to work out the median cash limits across credit cards. If enough people take part, it might become pretty clear what the industry decides on.
I know the "cash limit" problem is fundamentally one of risk. For example, newbies to credit would be less likely to be granted a 100% cash limit for fear of withdrawing it all and running off to the hills, but the discretionary (almost arbitrary) decisions about the ratio would be interesting to know more about.
SO - I have created a poll in a naive attempt to understand what is the most common cash limit (as a proportion of credit limit) to work out the median cash limits across credit cards. If enough people take part, it might become pretty clear what the industry decides on.
Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt - Henrik Ibsen
What is your (average) cash limit as a % of credit limit on your credit card(s)? 8 votes
10% Cash Limit (You can take 10% of Credit Limit as Cash)
0%
0 votes
20% Cash Limit (You can take 20% of Credit Limit as Cash)
0%
0 votes
30% Cash Limit (You can take 30% of Credit Limit as Cash)
37%
3 votes
40% Cash Limit (You can take 40% of Credit Limit as Cash)
0%
0 votes
50% Cash Limit (You can take 50% of Credit Limit as Cash)
50%
4 votes
60% Cash Limit (You can take 60% of Credit Limit as Cash)
0%
0 votes
70% Cash Limit (You can take 70% of Credit Limit as Cash)
0%
0 votes
80% Cash Limit (You can take 80% of Credit Limit as Cash)
0%
0 votes
90% Cash Limit (You can take 90% of Credit Limit as Cash)
0%
0 votes
100% Cash Limit (You can take 100% of Credit Limit as Cash)
12%
1 vote
0
Comments
-
I'm not sure, but I do know one thing: I have never withdrawn cash using a credit card and never intend to - it costs a fortune! It's always (in my experience) been better to buy stuff directly with the credit card and to withdraw cash (free of charge!) from my current account.0
-
It is ridiculously expensive to take any form of cash advance and the number of cash advances now appears on credit reports, as as a sign of "panic" or "easy profit" (cynical Rosmersholm!) to prospective lenders.
The interest rates on cash are also unusual - some credit cards have given me the same interest on cash as purchases - and some give massive APR for cash in contrast to purchases.
Of course, official advice is never to take cash advances at all - unless an emergency - but it strikes me as interesting to discover how much "risk" the companies are willing to take. If only I could do a poll indicating which bank of CC company.Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt - Henrik Ibsen0 -
I do know one thing: I have never withdrawn cash using a credit card and never intend to - it costs a fortune!rosmersholm wrote: »It is ridiculously expensive to take any form of cash advance and the number of cash advances now appears on credit reports, as as a sign of "panic" or "easy profit" (cynical Rosmersholm!) to prospective lenders.
Of course, official advice is never to take cash advances at all
Not sure what this "official" advice is all about.
It depends. For most cards it IS a very expensive form of credit.
Getting cash on a credit card is often the cheapest way if you are overseas and use Zero, Clarity, Sainsburys Gold.
I probably make 20 such withdrawals a year in Asia. Always get the "cash advance" marker on my report. Given I can still get credit, it's hardly a sign of panic. My guess is it's combined with other factors.0 -
By "official" - I mean the standard "line" of MSE(!)
As far as abroad cash advances - it is probably the safest way (and cheapest w/ Clarity) to draw cash. However, cash advances can be seen (away from specialist cards such as the ones you mention) as signs of panic to CC providers - which is surely why they are included in credit reports nowadays, listed monthly.
However, like my cynical conclusion before, it could be a sign to a prospective lender that the person favours convenience over cost - and their eyes would light up at a potentially profitable customer.Home life ceases to be free and beautiful as soon as it is founded on borrowing and debt - Henrik Ibsen0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.5K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.5K Work, Benefits & Business
- 598.1K Mortgages, Homes & Bills
- 176.7K Life & Family
- 256.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards