cash withdrawal

lisyloo

My post is purely about the UK if your withdraw cash from a UK cash machine it shows debt stress.

That makes a lot more sense.
Thanks for clarifying.
However I don't believe there is anything on the credit report to distinguish UK and non-UK cash advances to lenders/readers.

otherwise why wouldn't you withdraw money from your debit card and not your credit card?

Simply because some of the best (cheapest) cards for withdrawing cash abroad happen to be a credit cards even taking into account any interest charges.
Why card issues have marketed their products this way I have no idea. I could speculate that they were hoping some people will pay more interest that way but that would be cynical :-)
There are ways to minimise the interest to make it very small e.g. by making on-line payments to your credit card immediately after withdrawal.

Many MSEs like myself who have the cash, use credit cards for cash withdrawal abroad as it's simply the cheapest method.
I have not personally noticed and negative effect and I am not aware of one generally (which I would expect to see on MSE as it's in very common use).

Perhaps there is some mechanism that lenders use - such as the number of occurences.
I don't believe they would know the cash transactions were foreign.

meiso

Hmmm... Either way, I think I'm going to make sure to plough as much money as I can into my credit card.

meer53

If i'm looking at lending to one of our existing customers, cash withdrawals on a CC make a huge difference to my decision. If i can see it's whilst they've been on holiday then obviously i would take that into account but, whilst you can't tell on a credit report, if you're asking for money (loan, overdraft,mortgage etc) from the bank who also issues your CC, make sure you have a really good reason for using that CC for cash ! It's a big indicator of financial pressure. And as O4U says, the red light is huge !

Somehow i don't think the OP wants to use their card on holiday !

opinions4u

Withdrawing a couple of hundred Euros from an ATM on the Costa Packet in July and repaying it in August will cause little stress on a credit application.

Withdrawing cash month after month as part of an increasing credit card balance? A real sign of financial stress. £9,200? !!

lisyloo

Withdrawing a couple of hundred Euros from an ATM on the Costa Packet in July and repaying it in August will cause little stress on a credit application.

Withdrawing cash month after month as part of an increasing credit card balance? A real sign of financial strss. £9,200? !!

Good.
I'm glad we have established a link between pattern of behaviour and effect on credit rating.
Rather than the erronenous black & white.
Cash = Ruined credit rating.