How long does a cash advance stay on a credit rating?

epm-84

Martin says to never use credit cards for cash advances as they go on your credit record but inadvertently (by using a credit card to fund an online pre-paid account) a £5 transaction appeared on my (Natwest) credit card statement as a cash advance. How long will this spend on my credit record?

inmypocketnottheirs

It won't. Just pay your balance in full.

YorkshireBoy

epm-84 wrote: »

How long will this spend on my credit record?

At least 2 years according to...


http://www.experian.co.uk/downloads/consumer/experian-YCRE.pdf (page 13)


That's if your card provider reports 'extended information' to the CRAs. Do they?


At the end of the day though, a £5 'cash' transaction will have negligible, if any, impact!

chattychappy

Based on this, it could stay on your record until 6 years after you close your account. http://www.experian.co.uk/consumer/faq/CA1.html#q629. Whether it would be "fair" for this information to be kept and used so long after the event is another matter.

But frankly I wouldn't worry at all. I get cash advances all the time, because it is the cheapest way for me to get cash overseas and I feel safer using a CC than a debit card. I don't seem to have any problems getting or maintaining credit.

Cash advances are a profitable activity for CCs. It would be a bit stupid if in taking up the service you were prevented from obtaining credit services in the future. If they were that worried then they wouldn't offer them at all.

I think a cash advance is only seen as negative when taken with other factors - perhaps only paying minimums or being close to your limits.

YorkshireBoy

chattychappy wrote: »

Based on this, it could stay on your record until 6 years after you close your account. http://www.experian.co.uk/consumer/faq/CA1.html#q629.

That's a good point. Keeping the card open until the cash withdrawal falls off into the summary section (the "25+ months" section in my earlier link) would be wise.


But I still wouldn't worry bearing in mind it's a one-off(?) and small value transaction.

PeacefulWaters

Cash advances plus increasing debt = concern.

Occasional cash advance and balance cleared in full each month = no concern (although it can be an expensive way to manage your money).

chattychappy

PeacefulWaters wrote: »

Cash advances plus increasing debt = concern.

Occasional cash advance and balance cleared in full each month = no concern (although it can be an expensive way to manage your money).

I'm guessing I do 50 cash advances a year, usually taking the maximum amount allowed. Also I have BT deals on a couple of cards. Overall debt going down, I suppose.

MisterBaxter

The way I read the article is that not all CC providers report this level of detail, for those that do a single cash advance where the card was paid in full I wouldn't have thought would pose a major issue. A lot of friends have said that they use their card for cash advances when travelling because they've had problems with debit cards, they don't seem to have had any problems from it, including getting mortgages and further credit.