credit card, limit increase query

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have recently starting using aqua and vanquis, now if i used the cards for an occassional cash withdrawal, would that hamper my chances of getting a limit increase?

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  • You-kip
    You-kip Posts: 499 Forumite
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    have recently starting using aqua and vanquis, now if i used the cards for an occassional cash withdrawal, would that hamper my chances of getting a limit increase?

    No shouldn't do especially likes of Vanquis who normally promotes these type transactions for extra profit for themselves.

    As for Aqua don't know much about this outfit.
  • izools
    izools Posts: 7,513 Forumite
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    I sure hope it would. Cash withdrawals on a credit card should be, from the cardholders perspective, "Impossible".

    They cost an arm and a leg in cash withdrawal fees
    They cost an arm and a leg in interest which is still charged even if the bill cleared in full
    They hamper your credit rating as other lenders will see that you made cash withdrawals and think twice about whether to offer you a line of credit, or what interest rate to offer you

    Don't do it.

    Ever.
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • Fruit_and_Nut_Case
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    You-kip wrote: »
    No shouldn't do...
    izools wrote: »
    I sure hope it would...
    Best of three? :D
    Are you for real? - Glass Half Empty??
    :coffee:
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    First Anniversary Combo Breaker PPI Party Pooper Debt-free and Proud!
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    The only time a cash advance should be made on a credit card, is if you are desperate for the cash and can pay it back ASAP or if there is no fee and there is an interest free period such as upto 56 days on an advance.

    On subprime cards, apart from the sky high cost, they are normally for people without a good credit history already, so I would imagine they would be frowned upon more by lenders.

    I've a couple of times, made cash withdrawals on my standard 16.9%-19.9% APR CC's, when I have left my bank card at home and/or I need more cash in a day and my debit card limit has been reached for the day.

    I always pay the amount back, within 48 hours however, to reduce the costs.

    The odd withdrawal on a non sub prime card, once or twice a year, isn't that bad, providing you carry no or little balance on a card from month to month.
  • StuC75
    StuC75 Posts: 2,065 Forumite
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    Not sure Im reading this the wrong way.. Most lenders would not frown upon and easy way of making money from a customer.

    Payment history and conduct is far better gauge - they can see what cash advances you are taking, but if regularly paid off then they can see scope for a profit to be made with a minimal amount of risk; and that operating within financial means (yes Cash advances month after month with the balance creeping up is not a good sign)..

    A usefull analogy is that a Pub Landlord will prefer a 'steady drinker' over a tee-totaller and a Bingedrinking Alcholic!.. They want a steady return, but dont want the fall out of a binge drinker.. So thats why they use scoring and profiling - looking at history to work out who to let in..

    So there are differences between MSE Savvyness & what works for Credit Card companies..
  • You-kip
    You-kip Posts: 499 Forumite
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    Best of three? :D

    I agree with izools if its a prime lender but IMO the likes of Vanquis often promotes cash withdrawals and many customers on the forum have done this with no effect on their limit increases.
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