Cash Withdrawal

TheShape

How much of a negative impact does a cash withdrawal on your credit card have, especially if you'd like to remortgage soon?

Also, if a withdrawal is made, is it a good idea to pay off my full balance ASAP to limit interest or only once the statement is produced?

Just to add, I didn't make this withdrawal.  My partner withdrew £10 because she wanted to check that she knew the PIN.  Yes, no need to make a withdrawal to check that!

[Deleted User]

Best to avoid it, but an isolated incident won't be a major concern if your accounts are otherwise well managed.

Pay the statement in full - or last statement plus the £10 and fee.

jonesMUFCforever

A £10 credit card withdrawal is not the end of the world but pay it off (plus any fees) ASAP.

cymruchris

As it's £10 - the interest isn't going to be extortionate - but you'll find that if you pay it off today after withdrawing it a few days ago, including any outstanding balance down to zero - you may still get a few pennies interest charged next month, as cash advances attract interest immediately. 

goldieandblackie

If you have an outstanding balance on your credit card, the cash withdraw will be the last amount to be paid off.

IE. Standard balance comes off first at x% rate

Cash withdrawals come off last when you are down to the amount you withdrew (ie) £10 and charged at a higher rate of interest sometimes.

Get this paid off straight away because withdrawing cash on your credit card shows on your file to lenders that you are desperate for cash even if you were not. 

TheShape

I've paid the last statement balance plus the £10 + the £3 fee.  Did this yesterday.  The day of the withdrawal.  
The fee and interest are not an issue, my partner will be paying that.  The interest charge is a reasonable (for a cash advance) 12.9%.  I may just pay down the whole balance tonight.
Pain in the backside.

Would you believe that this happened because she forgot the PIN for her Debit Card.  Managed to remember the Credit Card PIN though.

RobM99

I don't think £10 will bring disaster, especially as paid up 'pronto'. 

goldieandblackie

RobM99 said:

I don't think £10 will bring disaster, especially as paid up 'pronto'. 

Here lifted straight from Money saving expert the facts.

Can I withdraw cash on my credit card? 
You can, but that usually doesn't mean you should. The first thing to say is that if you withdraw cash on your credit card, that's recorded on your credit record. If another lender saw that, it would likely see it as a danger sign.

It would probably assume that you're having to make the cash withdrawal because you have no money left in your bank account and are relying on your credit card to pay for essentials.

If a lender's searching your record because you've applied for a loan and it sees cash withdrawals, it could be a flag that you can't manage your money – and it may question whether you'd be able to pay it back.

It's also expensive to withdraw cash on a credit card. And while that fact doesn't affect your credit score, it does affect your finances. That's why our usual mantra is: NEVER, EVER withdraw cash on a credit card.

Just pay off the balance in full and clear the card if you can as if you're looking to remortgage you don't need any problems.