Does withdrawing cash on your C/Card negatively affect your credit score?

PenguinKratos

I needed to withdraw some cash last week (not much, just £20). Due to leaving my wallet at work (I keep my credit card on my person - phone wallet)

Does withdrawing cash on your card impact negatively on your credit rating?

I'm well within my credit limit - £3,500 and I rarely have more than a £200 on my account (I have a DD to clear the full balance every month).

Other than higher interest rates etc. is there any reason why I shouldn't use cash withdraws in emergencies?

redux

Some people seem to suggest it can cause adverse markers, as it may imply debt spiralling upward slightly out of control (cash from one card to cover minimum psyment on the next), but as yours is pretty modest and unlikely to happen every month I'd assume it isn't something to worry about, for either you or the card firms.

More expert opinion may come from others though.

jonesMUFCforever

It used to be a big no no as it may indicate that you were over committed and being forced to live on credit.
Since then though a lot of cards have come onto the market using fee free cash withdrawals as a hook to get you to apply such as the Clarity card.

At the end of the day your conduct in how you run the cards will be the most important factor. The odd cash withdrawal will not have a bad effect.

Anthorn

PenguinKratos wrote: »

I needed to withdraw some cash last week (not much, just £20). Due to leaving my wallet at work (I keep my credit card on my person - phone wallet)

Does withdrawing cash on your card impact negatively on your credit rating?

I'm well within my credit limit - £3,500 and I rarely have more than a £200 on my account (I have a DD to clear the full balance every month).

Other than higher interest rates etc. is there any reason why I shouldn't use cash withdraws in emergencies?

Depends on how often you do it. If you do it regularly for a period you will be creating a pattern on your credit history which could be viewed by lenders as an indication of financial stress. But there are other factors such as credit limit related to balance and whether only the minimum payment is paid. Put them all together and you have your financial profile which is created by lenders.

JuicyJesus

jonesMUFCforever wrote: »

At the end of the day your conduct in how you run the cards will be the most important factor. The odd cash withdrawal will not have a bad effect.

Yup - once in a year looks like you've gone to Spain and you've taken some cash out, multiple times in a year it looks like you've run out of sources of cash.

Ben8282

A one-off cash withdrawal for £20 will have no adverse effect whatsoever.

chattychappy

I use Clarity/Zero regularly for cash, at one time weekly for over a year. Probably still 2 or 3 times a month on average.

Never had a problem getting a credit. For those interested in such things, my "Experian" score is currently 996 according to the Barclaycard feebie service.

So I don't think it is the number of withdrawals that is a problem. Probably only be negative when taken with other factors - eg close to limits, only paying minimums etc.