Credit cards on gambling websites - counts as a cash advance

tain

Is this something everyone else was aware of except me? Just had a long conversation with my credit card company regarding using my credit card for a bet online. I stupidly only used my credit card as I didn't have any other card available, and now three years of using it for small amounts then paying off in full to build my credit rating may have been totally wasted.

They've kindly agreed to waive the charges that were applied, and told me that it shouldn't affect my credit file. They were a little sketchy about this though, so I may need to do a notice of correction and pray that it doesn't affect my mortgage applications next year.


Anyone else had experience of this? I can't understand how I was able to use my credit card on a website, with zero indication that the transaction was going to be handled differently. I'll forget the fact the bet won me £135 - that money can go and jump if it stops me getting a mortgage next year.

I don't know if I should be angry at the credit card companies for not making this clearer or making the charge in the first place, the gambling websites for at no stage making this information known, or if I'm just plain ignorant and everyone else is going to call me a moron.

[Deleted User]

It's common on just about all cards.

It would have been in the t&cs you received at application or via a separate notification if it was introduced later on.

A single cash advance isn't the end of the world, but I wouldn't make a habit of it.

CLAPTON

tain wrote: »

Is this something everyone else was aware of except me? Just had a long conversation with my credit card company regarding using my credit card for a bet online. I stupidly only used my credit card as I didn't have any other card available, and now three years of using it for small amounts then paying off in full to build my credit rating may have been totally wasted.

They've kindly agreed to waive the charges that were applied, and told me that it shouldn't affect my credit file. They were a little sketchy about this though, so I may need to do a notice of correction and pray that it doesn't affect my mortgage applications next year.


Anyone else had experience of this? I can't understand how I was able to use my credit card on a website, with zero indication that the transaction was going to be handled differently. I'll forget the fact the bet won me £135 - that money can go and jump if it stops me getting a mortgage next year.

I don't know if I should be angry at the credit card companies for not making this clearer or making the charge in the first place, the gambling websites for at no stage making this information known, or if I'm just plain ignorant and everyone else is going to call me a moron.

It isn't very widely know (except on websites like this) but you are over reacting a little

a single 'cash' transaction isn't going to damage your credit worthiness : regular use may well be different.

chrisw99

It does actually say this in T&Cs. I just picked a site at random (Sainburys Bank) and in their credit card T&C pdf, the definition of a "cash advance" is...


Cash advance – cash obtained by using the card or money transfers, finance payments or gambling transactions made with the card (including all ATM withdrawals, but excluding the purchase of traveller's cheques and/or foreign currency).


But what you actually do with your card shouldn't be known to credit scoring? Only the balance, the limit and your payment history is known surely?

tain

I'm guessing I'm not the only one who hasn't really read my credit card T&Cs...

Although this is my folly - I got this credit card about 8 years ago, so even if I'd burnt the T&Cs to memory, there's a good chance I'd still have forgotten in that time.

tain

CLAPTON wrote: »

It isn't very widely know (except on websites like this) but you are over reacting a little

a single 'cash' transaction isn't going to damage your credit worthiness : regular use may well be different.

Cheers. I see Martin touting cash advances as massive no-nos so it's put the willies up me. Especially as it was such an avoidable instance - I thought that earning £135 to put my credit card in to credit was a good thing.

tain

Kudos to Aqua credit cards as well. Although she could have reassured me a bit better, they had no obligation to refund the interest or charges but did anyway.

andyfromotley

It changed roughly in 2006/7. before that it was virtually always NOT considered a cash advance. Then within the space of a few months they virtually all changed their T&C's to make it a cash advance. It caused a bit of furore in the online gambling world, but as you say who really reads their T&C's? (cue huge numbers of posters 'me and MRS mse like nothing better than spending the odd evening in front of the telly reading our CC t&c's!!')

Tis a bummer but they've gotcha, pretty lucky to get the costs repaid i think! (now if this was ever subject to a PPI style compensation i would start shopping for yachts!!).

andy.

chrisw99

I think the reason it changed was because you could use the gambling sites as a loophole to deposit money with a credit card, then withdraw to a debit card, so you could do yourself a bit of a money transfer at standard APR rates

tain

chrisw99 wrote: »

I think the reason it changed was because you could use the gambling sites as a loophole to deposit money with a credit card, then withdraw to a debit card, so you could do yourself a bit of a money transfer at standard APR rates

You can only withdraw to the same card you loaded it on from.

chrisw99

tain wrote: »

You can only withdraw to the same card you loaded it on from.

That's as it is now, but not in the early days, you could register a few cards, pay with one and then withdraw to any of your registered cards.