Cash Advances - Bad?

jonnyt44

Hi Everyone,

With all the talk about mortgage/loan companies not liking people who take out Payday loans, this got me thinking...

Would it look bad to a credit card company if you withdraw cash using your credit card?

Now, as far as I am aware, this information doesn't appear on your credit report or affect your rating (please correct me if I'm wrong!), however for that individual credit card company, would they look at you less favourably? For example, they could reduce your credit limit or not offer you a future lower APR...

Or would the use of cash advances be just the same as using the card for purchases (Extra fees and interest aside..)

Thanks

Jonny

Tixy

It can appear on your credit file. Some lenders now provide enhanced data which does detail this.

To the credit card company itself - if its occasional / maybe just when abroad I don't think it would be a major cause of concern. If its regularly, and especially if the balance is increasing then I would think it would likely cause concern and could trigger an account review.

jonnyt44

Well, I took a cash advance from a local cash machine of £80 on Wednesday, as I genuinely needed a little bit of cash to carry me through until the next pay day (today). I have since paid £150 towards my credit card balance (sitting at £300) this morning (however it takes 2 days for the payment to apply).

Would this cause any harm?

NB: The statement date isn't until 6th July and payment isn't due until 4th August, so I'm very early with the part-repayment of the balance.