Credit Card cash withdrawal and Credit score

slizovskiy

Dear Forum members,
I have found a mentioning from Martin that cash withdrawals from the credit card can affect ones credit score. Is it true?
It is my most cost-effective way of getting cash abroad: use Santander Zero credit card to withdraw cash in ATM and then repay the balance immediately the same day (this is done via transfer to a special account number in Santander).
Thanks,
Sergey

YorkshireBoy

slizovskiy wrote: »

I have found a mentioning from Martin that cash withdrawals from the credit card can affect ones credit score. Is it true?

The best answer is 'it depends'.

On their own, the odd cash advance shouldn't have too much impact on your credit file. But coupled with high utilisation and over-indebtedness it could have a negative impact.

use Santander Zero credit card to withdraw cash in ATM and then repay the balance immediately the same day

In doing that you risk creating a positive balance. That's because transactions generally take 2 working days to properly hit your account (up until then they just affect your available credit). Waiting a couple of days should help prevent such positive balances.

(this is done via transfer to a special account number in Santander).

Special account number? Isn't it just the details provided on your statement, ie sort code, collection account, and your unique card number as the reference? What's "special" about those?

[Deleted User]

Your score being affected is meaningless, since it's a made up number.

chattychappy

All I can say is that every month I make several ATM withdrawals on either Zero or Halifax Clarity. I never have a problem getting credit and my experian score was 999 when I last checked via Barclaycard (for those that believe in such things).

Cash advances are a service that is offered. It is not like missing a payment or going over your limit. I believe it is only negative when combined with other factors, eg maxxed out, paying minimums only or missed payments.

TheBanker

chattychappy wrote: »

Cash advances are a service that is offered. It is not like missing a payment or going over your limit. I believe it is only negative when combined with other factors, eg maxxed out, paying minimums only or missed payments.

This is correct. If your credit file is clean then cash advances won't be an issue. If your credit file is borderline then high levels of cash advances could have a negative impact, depending on the lender's own policy in respect of such matters.

A4445

If you get a card issued by Creation they don't report cash withdrawals to any CRA. They also do a card with Zero Forex.