Cash advances on credit card in credit report

The_Boss

Hi all.

I always understood that any cash advances showing against credit cards on your credit report look bad because you look desperate for credit. Is this actually the case though?

The past three years I've withdrawn cash in foreign currency on my Halifax Clarity Card when on holiday, with it being the best way for me to get the best rates. So I have three advances showing up on my credit file that I don't want to be problematic when getting a mortgage next year (my repayment history on all accounts is flawless).

The_Boss

bumpty bump

Anthorn

The_Boss wrote: »

Hi all.

I always understood that any cash advances showing against credit cards on your credit report look bad because you look desperate for credit. Is this actually the case though?

The past three years I've withdrawn cash in foreign currency on my Halifax Clarity Card when on holiday, with it being the best way for me to get the best rates. So I have three advances showing up on my credit file that I don't want to be problematic when getting a mortgage next year (my repayment history on all accounts is flawless).

That's what everyone says but personally I haven't seen any evidence of it. It comes from CRAs who publish credit scores which everyone says are meaningless anyway. Did you spot the deliberate contradiction?

Best illustrated with common sense: Personally, I have never taken a cash advance nor a cash transfer on credit. But if I did it would be because I was strapped for cash.

Mr_Goodkat

Cash advances can be seen as negative as it is an expensive way to borrow money and it can appear that you are living beyond your means / desperate for the money.

The context is important though an odd cash advance on a strong credit profile will have very little impact.

Personally like the OP I only ever take cash advances on credit cards when abroad as both Halifax Clarity and MBNA Everyday Amex offer me a better rate than I can get elsewhere even with a couple of days interest on the money. These limited cash advances has not caused me any problems or ever generated a follow up question from any lender.

takman

I have used the Clarity card abroad a few times but I have never been declined for any credit / bank accounts so it can't have much of a negative effect at all (if any).

But because the provider of your credit cards are not shown to lenders on your credit report then they won't know if your using a clarity card. So logically cash withdrawals are most likely to be be viewed negatively because it looks like your desperate.

rebecca1982

Hi Boss!!!

There are two parts to this:

1. Your credit card lender will use the fact you've withdrawn money against you. Not in a nasty way; however, don't expect anymore limit increases or access to 0% offers etc etc...

2. External agencies, such as Experian / Equifax do not report "cash withdrawls" on their system. So when applying for a new card, there's no way for them to find out you've made a cash withdrawal.

So to answer your question, nope, it won't show up on your credit file.

Hope that helps.

takman

rebecca1982 wrote: »

Hi Boss!!!

There are two parts to this:

1. Your credit card lender will use the fact you've withdrawn money against you. Not in a nasty way; however, don't expect anymore limit increases or access to 0% offers etc etc...

2. External agencies, such as Experian / Equifax do not report "cash withdrawls" on their system. So when applying for a new card, there's no way for them to find out you've made a cash withdrawal.

So to answer your question, nope, it won't show up on your credit file.

Hope that helps.

Oh dear wrong on both points!.

1. I've had a large limit increase on my Halifax Clarity Card since using it to do a few cash withdrawals abroad. So that's definetly not true!.

2. Here is Experian themselves saying they collect and share information about cash withdrawals, so it WILL show on your credit report.

http://www.experian.co.uk/consumer/questions/askjames358.html

The_Boss

Yeah, Halifax have given me big increases too and the reason I discovered the cash advances had been recorded was because I was checking my credit file. Bit miffed at this given it's one of the benefits of the card (and is encouraged by the MSE world) but I guess at least I can talk around it to a mortgage underwriter if necessary.

jonesMUFCforever

The_Boss wrote: »

Yeah, Halifax have given me big increases too and the reason I discovered the cash advances had been recorded was because I was checking my credit file. Bit miffed at this given it's one of the benefits of the card (and is encouraged by the MSE world) but I guess at least I can talk around it to a mortgage underwriter if necessary.

The most important thing to show a mortgage broker is the fact that you have paid off any cash advances (as well as other borrowing of course) so keep those statements to hand or if paperless print them off.

Jake81

Hello all,

Does information on cash advances stay on credit reports forever?

I've recently made a cash advance on my Halifax Clarity card and it shows on the Equifax report. However, this detailed report seems to cover only the last month and such detailed reports are not available for previous months. Or maybe I'm not looking at the right report? I'm looking at the statutory £2 one!

Many thanks for helping me to understand this!

[Deleted User]

Experian have a CAIS system where certain lenders report detailed information and it's visible for previous months (I can see the last 4/5 years of my info).

I believe the activity stays there for 6 years then starts to drop off on a rolling basis (so if the account is 7 years old (open or closed), the 1st years information would have dropped off, the rest would remain). I don't have any accounts that old to check.

I think Equifax only show, and store, the current month. I'm sure if they store older cash advance data, they have to show it to you (statutory report or otherwise). I've even got a free trial of their expensive service, and can't even see further back than the previous month on there.

So it's Experian you need to 'worry' about - they are the ones that will store and show your past cash advance activity to lenders, for up to 6 years as far as I know.

This has cropped up in other threads too - as stated above, if you pay the balance in full, then the impact is likely to be minimal, especially if you have a decent credit record.