Does a cash advance on a credit card look bad on a credit report?

JustinCredibleGillespie

Hi,

I applied and was accepted for a Vanquis credit card in November after not having used credit for a long time. After a few months my credit rating started to rise with Noddle, So I then applied for a Capital One card and I was accepted there too, however, I decided to give a card to a friend for her to use the limit is £200, the credit limit on my Vanquis is £500 and I always pay it off in full every month so I decided to keep that instead.

Now....the card has been used on a gambling site... £50 last month and £40 for this month and they do show up as 'Cash Advance'.

My question is......will these look bad on my credit report? Does it look like I am using the cards to live on as if I am withdrawing money from an ATM machine. I am hoping to get a mortgage in a few years time I dont want this to damage any hope that I have as we all know how tight the banks are lately.

Cheers

JCG

xx

[Deleted User]

Generally speaking, yes, it looks bad. Many lenders view cash users as higher risk.

Remember also that desptie you paying off the balance in full each month, you will now have some interest to pay on the cash usage, plus the fees.

I'd get your card back as soon as you can. Remember that you've now probably lost any defence in the event of fraud on your card, by handing out your card details for someone else to use.

JustinCredibleGillespie

Thank you zx for answering my question.

JCG

xx

chattychappy

I regularly use my CC to obtain cash overseas - often several times a month - and have not had problems obtaining credit.

I expect it is only negative when taken with other factors, eg close to limit, missed payments, only paying minimums.

JakeGreen

chattychappy wrote: »

I expect it is only negative when taken with other factors, eg close to limit, missed payments, only paying minimums.

Yep, cash and minimum payments is a bad combination because you can essentially withdraw the cash to make the minimum payments.