Cash withdrawals abroad

Chunky_Lover

I have heard Martin say in the past that withdrawing cash on a credit card can affect your credit score. I have a Halifax clarity card as advised to use when abroad. If I withdraw cash from an ATM would this be the case?

PeacefulWaters

If you have an ever increasing balance created by cash advances you have a problem.

If you're getting cash and then repaying the balance at the end of a trip or sooner you have no problem.

chattychappy

Agree with pw. I think the concern is that people might pull out some cash simply to pay the minimum. So taken together with other factors (only paying minimums, close to limits) it could be seen as a sign of distress.

Bear in mind that the facility to draw cash is a service that is promoted. It's not the same as missing a payment of going overlimit.

If it's any comfort to you, I've taken out about £1500 during the last month, over Clarity and Zero. It's not unusual for me and I never have a problem getting credit. The Experian score checker on Barclaycard (which I don't take seriously) says my rating is 999. So they don't seem to notice it.

So go ahead and have a nice trip. Do take backups in case Clarity fails for some reason. Don't forget: if you are offered a choice of currency, always ask to be billed in local currency, rejecting "conversion". Any local conversion will be poor compared with Clarity's conversion.

MEM62

Wearing different coloured socks can have an impact on your credit 'score'. It is your history that is important, not the randomly generated number that is touted as your score.

Either way, using the card responsibly and clearing the balance promptly should ensure that you are not viewed negatively by lenders. (I am not even aware that spending on goods and cash withdrawals are reported differently)

chattychappy

MEM62 wrote: »

(I am not even aware that spending on goods and cash withdrawals are reported differently)

When I last checked my full Experian report which must be a few years ago now, it was a simple yes/no flag each month in respect of each account and labelled "Cash advance taken". There were also similar flags for "Minimum payment" and "Promo running".

MEM62

chattychappy wrote: »

When I last checked my full Experian report which must be a few years ago now, it was a simple yes/no flag each month in respect of each account and labelled "Cash advance taken". There were also similar flags for "Minimum payment" and "Promo running".

That's interesting. I'll take a look - not that I have taken any cash advances.