Cash advance viewed negatively overseas?

Herbalus

So, I've read on here that cash advances can be viewed negatively by providers as it appears to be a sign of poor financial management and perhaps an overstretched budget.

Now this is a purely academic question as I never withdraw cash on a credit card and have a fee-free debit card for overseas, BUT, considering the Halifax Clarity's popularity on here, is this any different? Is taking cash out on a credit card abroad seen differently, or can it adversely affect what a lender might think?

Or, considering that many financially-astute people have the Clarity, withdraw cash, and never have a problem obtaining other credit, are cash advances really that bad (apart from the fees of course)?

baby_frogmella

I regularly withdraw cash overseas using my clarity card but I usually pay this off within days to minimise interest. Never had a problem getting credit elsewhere.

lisyloo

that cash advances can be viewed negatively

I think this has to be taken in context and not as a blanket statement.
So for example someone with an otherwise good credit history who takes money out on holiday, it would not generally be viewed negatively (I concurr with frogmella).
However someone maxed out on debt with poor management, low income might be view in a different way.
The lender builds up a picture so I don't think you can just take one single aspect like cash withdrawals overeas and single it out and say it's good or bad.
Some of us handle it responsibly others don't.

is this any different? Is taking cash out on a credit card abroad seen differently, or can it adversely affect what a lender might think?

I think it is different, because credit card transactions are borrowing money (cash in this case) whereas debit tranacations are using your own.

My experience (like Frogmellas) is that if you paying it off and using it for holidays then it doesn't negatively affect you.
But it could.

are cash advances really that bad

It really does depend.
Combined with other things - for example making the minimum payment, then it could be.

apart from the fees of course

There are no fees on Halifax Clarity and if you pay it off quick enough, no interest either.

have a fee-free debit card for overseas

Which one please?
Is it still available or has it been withdrawn for new customers.
Is it also free outside the EU?

agrinnall

lisyloo wrote: »

Which one please?
Is it still available or has it been withdrawn for new customers.
Is it also free outside the EU?

I'm not sure why you wouldn't just look at the Debit Cards section of MSE's Cheap Travel Money guide, which has been updated to include the recent change to the Metrobank card, so hopefully its advice is still valid.

http://www.moneysavingexpert.com/travel/cheap-travel-money#howgood

lisyloo

I'm not sure why you wouldn't just look at the Debit Cards section of MSE's Cheap Travel Money guide

I was asking which card Herbalus has and I don't think the guide will tell me that

Herbalus

lisyloo wrote: »

Which one please?
Is it still available or has it been withdrawn for new customers.
Is it also free outside the EU?

N&P Gold account. Free worldwide, and still available. Requires £500 in each month, but I have two (me and the other half) 5% Regular Savers which conveniently are £250 each. N&P have a slightly archaic system whereby FPs go in and out roughly on the hour during working hours, so if you're traveling abroad you have to top it up well in advance.

I was just curious about this question as a lender can't see the immediate repayment of the withdrawal, but just the amount on the statement reported to the CRAs.

lisyloo

lender can't see the immediate repayment of the withdrawal

No they can't tell when you've paid but I believe there is a minimum payment marker on the extended information.

You probably know this already but those of us who pay it off immediately on CC's do so to avoid any interest.

What the lender is looking for is whether it's good or bad debt.
Generally borrowing cash for the long term is regarded as bad.
Short term people can need it for perfectly good reasons - such as just being on holiday.

agrinnall

lisyloo wrote: »

I was asking which card Herbalus has and I don't think the guide will tell me that

You're right, and we now know the answer.

It looked from your question as if you were asking in order to decide whether to get the same one yourself: if that's not correct I apologise for getting confused; if it is then knowing what card somebody else has seems to give no advantage over looking in the guide, especially if the card is no longer available.

lisyloo

No need to apologise :-)

If you're really interested, I had multiple reasons for asking.
It's possible that the OP might not have heard about the Metro news recently and we could have helped on that score (that's not turned out to be the case).
I was curious as well so I will try to remember to consult the guides in future (thanks for the reminder).
The advantage of asking the question was that it would it killed two birds with one stone.

Herbalus

Well this is the most amicable end to a discussion! Lovely to see after recent spats in other threads!!

chattychappy

I probably do 30 to 50 cash advances a year, mostly in Asia but also in Europe. My current card of choice is Santander Zero with Barclaycard as a second choice. I often withdraw the maximum I can get away with - £300 on Zero and £500 on Barclaycard. No doubt I have plenty of cash advance markers on my CRA reports.

I don't have problems getting credit. I can only assume that being well within credit limits, paying well over the minimums and not having late payment markers make things look ok overall.