Using credit card to convert money - bad for score?

Oasis1

Hi everyone. I'm picking up some Euros today and wondered whether using my credit card to do this would be viewed in the same way as withdrawing cash, and thus negatively effect my credit score?

Thanks

Oasis1

From what I've gathered from this thread, it's probably not a good idea?

Ben8282

Addressing your question as asked and ignoring any additional costs which may be involved in using a credit card for this purpose, everything will depend on your overall financial situation.
The problem with taking cash advances on credit cards is that potential lenders may view this as a sign of financial stress in that you have been forced to take the cash advance in order to meet your credit commitments for the month and/or to get through the month until your next payday because you have spent all your money.
Consider the following scenarios.
Mr A has only low limit credit cards, is overdrawn, has a few late payments, makes only minimum payments on the cards and regularly takes cash advances.
Mr B has high limit credit cards, charge cards, always pays everything in full every month, no late payments, has a substantial unused overdraft facility and regularly uses his credit cards (probably abroad) to take substantial cash advances.
The taking of the cash advances will have a serious negative effect on Mr A but will have no negative effect whatsoever on Mr B.
You need to determine where you fit in these scenarios. The closer you are to Mr A the greater the effect; the closer you are to Mr B the less the effect.

GingerBob_3

It will definitely work against you. A couple of years ago I was in the habit of taking cash from my Amex card on a regular basis. The only reason for this was that I used my Amex card exclusively for work-related expenses and at the time I was travelling abroad quite a bit. Invariably I would withdraw 500 or 1000 Euros at the airport - all paid back when my expenses were repaid, but not necessarily in the same month. Next thing Amex withdrew the cash facility and lowered my credit limit. They, of course, were a bunch of bloody fools, since I had no financial problems whatsoever, but their bum algorithms couldn't work this out.


Upshot: I told Amex to sod off and now rubbish them at every opportunity. It had no effect that I was aware of on my ability to obtain credit - but I'm pretty certain it would have done if I'd applied for a facility.

creditagenciesareajoke

Very helpful responses, many thanks. I was considering getting the MBNA Amex travel card and just withdrawing cash abroad in countries where AMEX isn't widely accepted but if it screws your credit record then I'll swerve it.