Will wihdrawing cash from credit card abroad hurt credit score?

AJJJ

Hello


I am living in India for some time now, coming from the UK. In order to save hefty non-sterling transaction/withdrawal fees, I got a Barclaycard Platinum Visa Credit card with 0% non-sterling fees.


Everything has been working wonderfully and it seems a super cheap way to access money whilst over here (compared to my debit card). However I have just been told that withdrawing cash from a credit card will hurt my ability to get a mortgage in the future. I am aware that lenders don't consider things like this in isolation, and I would hope that they acknowledge I am doing this not because of financial difficulty but to avoid transaction fees whilst abroad. I pay off my monthly bill in full.


Will my activity hurt my borrowing ability in the future?


Thanks

[Deleted User]

Unlikely in the case of forex.

However, residing overseas with a UK card could prove to be an issue for card renewals.

PeacefulWaters

If you're regularly drawing cash and have an increasing balance on the card then expect lenders to view that negatively.

If you clear your balance fully each month, no worries.

AJJJ

I am only residing here for 6 months so no worries with card renewal.


Clear balance each month or as soon as I use it by transfer from current account.


Thanks for the replies, I will continue to use it at ATM's worry free.

PixelPound

It might be 0% non-sterling fees, but there will be currency transaction fees, these might be hidden in the rate they use.

AJJJ

'No non-sterling transaction fees on your foreign spend and ATM withdrawals until 31 August 2018.'

I am under the impression I am paying nothing for using my card to withdraw cash abroad. The exchange rate used is Visa's standard rate which is sometimes better than what I find on Google when I type in INR-GBP.

[Deleted User]

You'll only pay interest from date of withdrawal, and any ATM charges, but the latter is determined locally.

AJJJ

There is no interest due on payments or cash w/d if paid on time. Winning :T


From MSE- 'Most overseas credit cards, including almost all our other top picks, charge interest on cash withdrawals, from the day you make the withdrawal until you pay it off. Unusually the new Barclaycard doesn't, provided you pay in full each month – which makes it a good option if you like to take out cash when on holiday or are visiting a country where card payments aren't widely accepted'

[Deleted User]

Even better.

Jlawson118

I made a small withdraw in Romania last Summer, think it was about £20 and I don't think this ever impacted my score. I was in Bulgaria for a few months and it was just a day trip, I only had Bulgarian currency so I took my card for purchases and a lot of places didn't accept card, so I had to withdraw some. Just make sure to pay off your bill on time and you should be fine!

chattychappy

I make around 50 ATM withdrawals a year. Never had a problem obtaining credit. For those interested in such things, my Experian score (via the Barclaycard service) is currently 996/999.

Unlike exceeding your limit or missing a payment, taking a cash advance is using a service that is promoted. So by itself it is unlikely to be negative. It probably is negative when taken with other factors - eg close to limits, only paying minimums. The obvious risk is that people take a cash withdrawal in order to pay off the minimum.