Credit Card Cash Withdrawal

nh1234

Hi

I have recently lent my credit card to a friend in need (I am aware this is my fault and was a stupid thing to do) however they unfortunately did what I specifically asked them not to do and withdrew cash of the amount £50. I am devastated about this as I work hard to keep my credit record clean. Can someone please tell me how this will affect me if at all? I will probably be applying for a mortgage in 3-4 years time and am really worried if this will have a negative impact. I would really appreciate some advice.

Thank you

Willing2Learn

Hi nh1234 and welcome to the forum

OMG- What possessed you to lend a credit card to a friend?

One isolated cash withdrawal is not the end of the world, as far as your three credit files are concerned.

Don't lend your card anyone. Don't tell anyone your PIN numbers or share your online banking details

[Deleted User]

Don’t lend your card out.

It will be against the terms of use of the card.

nh1234

Willing2Learn wrote: »

Hi nh1234 and welcome to the forum

OMG- What possessed you to lend a credit card to a friend?

One isolated cash withdrawal is not the end of the world, as far as your three credit files are concerned.

Don't lend your card anyone. Don't tell anyone your PIN numbers or share your online banking details

Thank you for getting back to me Willing2Learn. All I can say it was pure stupidity on my behalf wanting to help a friend out who I thought I could trust. I’m glad to hear it won’t be too damaging to my credit file.

MovingForwards

Change your PIN in case your friend borrows your card without asking if they are ever in dire need again.

murrays2

As long as you pay back at least the min amount each month, why exactly would this damage your credit file?

Having maxed out cards is not good for your credit file. That is a different story.

Ben8282

A single cash withdrawal will have no impact whatsoever on your future ability to obtain credit.
The only situation where the cash withdrawal could impact your future ability to obtain credit would be where your financial situation as indicated by your use of credit was such that it gave the impression to a future lender that you were repeatedly taking cash withdrawals in order to repay your credit commitments or, in an increasing balance/regular overdraft use situation, that you were drawing this cash in order to be able to live.
In 3-4 years the fact that you took the cash withdrawal will not even be visible as if you check your credit files you will be aware that detailed information is only shown for the past 2 years and beyond that only the status code for the account is shown.

Ben8282

murrays2 wrote: »

As long as you pay back at least the min amount each month, why exactly would this damage your credit file?

Having maxed out cards is not good for your credit file. That is a different story.

Disagree. Minimum payments and cash withdrawals is a big negative.

nh1234

That’s great to hear! Thanks so much for your replies

Scott1875

Don't think it makes much difference as long as you're paying it back straight away or at the end of each month. I've done it a few times and it's never stopped me getting credit. It's advisable not to as you obviously get charged but I'd do it again if something happened to my debit card. All about managing it well. If you kept on withdrawing cash from the credit card and and only paid the minimum back it may raise concerns.

PRAISETHESUN

Make sure to pay off the cash advance ASAP as it incurs interest from the date of the transaction rather than from your statement date!

Generally cash advances are seen as a negative, however a single one-off on an otherwise perfect credit file isn't likely to make too much of a difference in my opinion, particularly for a mortgage application a few years down the line.