Barlcaycard T&Cs Change: Cash Withdrawals

Fingerbobs

Zellah said:

Ebe_Scrooge said:

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Because if you're abroad, a credit card cash withdrawal (eg using Halifax Clarity CC) can work out much, much cheaper than using a bog standard debit card which charges 2%+ in commission charges. Frequent cash withdrawals on a CC - home or abroad - only have a negative effect if you don't pay them off quickly.

As long as the balance is paid off by the due date, I don't see how the speed of repaying a cash advance makes any difference, aside from additional interest of course. CRAs don't record how quickly you pay the cash advance off. 

Zellah

Fingerbobs said:

Zellah said:

Ebe_Scrooge said:

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Because if you're abroad, a credit card cash withdrawal (eg using Halifax Clarity CC) can work out much, much cheaper than using a bog standard debit card which charges 2%+ in commission charges. Frequent cash withdrawals on a CC - home or abroad - only have a negative effect if you don't pay them off quickly.

As long as the balance is paid off by the due date, I don't see how the speed of repaying a cash advance makes any difference, aside from additional interest of course. CRAs don't record how quickly you pay the cash advance off. 

So how would you explain the fact that, pre-covid19, despite making anywhere between 50-100 cash withdrawals each year (mostly when on business abroad where cash was king in certain countries), i didn't see any negative effect on my credit file? 

sleepyjones

There's an article on MSE here : https://www.moneysavingexpert.com/travel/withdrawing-cash-abroad-credit-record/

miller

I don't tend to take my debit card anywhere as any fraud is likely to cause more problems to resolve than on a credit card (it sits in a drawer). I keep a limited amount in an account with a cashcard if I want cash (rare these days); so the option to withdraw on a credit card without incurring interest is useful (from the end of January).

Fingerbobs

Zellah said:

Fingerbobs said:

Zellah said:

Ebe_Scrooge said:

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Because if you're abroad, a credit card cash withdrawal (eg using Halifax Clarity CC) can work out much, much cheaper than using a bog standard debit card which charges 2%+ in commission charges. Frequent cash withdrawals on a CC - home or abroad - only have a negative effect if you don't pay them off quickly.

As long as the balance is paid off by the due date, I don't see how the speed of repaying a cash advance makes any difference, aside from additional interest of course. CRAs don't record how quickly you pay the cash advance off. 

So how would you explain the fact that, pre-covid19, despite making anywhere between 50-100 cash withdrawals each year (mostly when on business abroad where cash was king in certain countries), i didn't see any negative effect on my credit file? 

How do you define a "negative effect on [your] credit file"? CRAs record factual information; they make no decision on whether that is "negative" or "positive." That's an interpretation of the data. 
CRAs only record the number of cash advances and the total combined value of all cash advances made during each reporting period. They have no record of how quickly they were paid off. 

Zellah

Fingerbobs said:

Zellah said:

Fingerbobs said:

Zellah said:

Ebe_Scrooge said:

sleepyjones said:

Isn't taking a cash advance on credit cards frowned upon in regards to your credit file?

Anecdotally yes.  I think in practice it depends largely on frequency.  The occasional cash withdrawal won't have much, if any, effect, but frequent withdrawals will.  This seems logical - why would you need to withdraw from your credit card if you have the cash in the bank, why not just use your debit card instead?  The implication is that you're desperate for cash and have none in the bank.

An occasional withdrawal if, for instance, you're in town and have forgotten your debit card, won't hurt.  Likewise, the "sensible" option of using something like the Halifax Clarity abroad to save on fees, once a year or whatever, is fine.  It's usually frequent withdrawals that start to cause an issue.

Because if you're abroad, a credit card cash withdrawal (eg using Halifax Clarity CC) can work out much, much cheaper than using a bog standard debit card which charges 2%+ in commission charges. Frequent cash withdrawals on a CC - home or abroad - only have a negative effect if you don't pay them off quickly.

As long as the balance is paid off by the due date, I don't see how the speed of repaying a cash advance makes any difference, aside from additional interest of course. CRAs don't record how quickly you pay the cash advance off. 

So how would you explain the fact that, pre-covid19, despite making anywhere between 50-100 cash withdrawals each year (mostly when on business abroad where cash was king in certain countries), i didn't see any negative effect on my credit file? 

How do you define a "negative effect on [your] credit file"? CRAs record factual information; they make no decision on whether that is "negative" or "positive." That's an interpretation of the data. 
CRAs only record the number of cash advances and the total combined value of all cash advances made during each reporting period. They have no record of how quickly they were paid off. 

By a "negative effect" I meant not being able to successfully obtain a few credit cards, mortgage, 2 loans and car finance over the last decade or so. Of course lenders don't just look at CRA data, they look at other factors as well (ie the bigger picture) but I'm 99% sure if my regular cash withdrawals were an issue, I would have been declined for credit. 

easterbunni

miller said:

I don't tend to take my debit card anywhere as any fraud is likely to cause more problems to resolve than on a credit card (it sits in a drawer). I keep a limited amount in an account with a cashcard if I want cash (rare these days); so the option to withdraw on a credit card without incurring interest is useful (from the end of January).

Agree since my BC is usually the only thing I have on me, this feature will be very nice if needed. If I remember what cash is by then...

easterbunni

SuperAllyB said:

jonesMUFCforever said:

My Barclaycard I use for day to day purchases and is paid off in full every month by direct debit.
When this kicks in will I be able to withdraw cash from the card (without charge and interest) and get the cashback?

I haven't searched specifically but I don't think fees are mentioned in the email, only that there will be no interest if paid in full by due date.

Can't see it qualifying for cashback either but who knows?

I assume there will be no cashback on cash withdrawals, can you imagine if someone at BC failed to spot that? Customers spending all day at their local Barclays ATM withdrawing cash and then going in the bank to deposit it again....

phillw

Zellah said:
By a "negative effect" I meant not being able to successfully obtain a few credit cards, mortgage, 2 loans and car finance over the last decade or so. Of course lenders don't just look at CRA data, they look at other factors as well (ie the bigger picture) but I'm 99% sure if my regular cash withdrawals were an issue, I would have been declined for credit. 

I don't see the big deal with cash advances, you can avoid cash entirely and live off spiraling credit card debt.
The only downside is if people use cash obtained from a credit card to cover the minimum payment.
Usually it's the fees and interest that is the real issue.
But there may be lenders that you didn't apply to that would have a problem with it and you won't know.

phillw

easterbunni said:
I assume there will be no cashback on cash withdrawals, can you imagine if someone at BC failed to spot that? Customers spending all day at their local Barclays ATM withdrawing cash and then going in the bank to deposit it again....

Why go into the bank? Don't barclays allow you to deposit cash in their ATMs?