ClearScore / Equifax - Negative impact from credit card withdrawals abroad (e.g. Halifax Clarity)

Chris4

ClearScore recently notified me they'd be viewing credit card withdrawals negatively on credit reports.

I can understand this in principle - you generally shouldn't borrow cash from a credit card. However, credit cards like Halifax Clarity provide near-perfect exchange rates and fee-free cash withdrawals globally. It's been a MSE Top Pick for travelling abroad for many, many years, and I've always been the most savvy among friends/family when abroad. I've had this card for 7 years now for domestic and international purchases and paid it off in FULL every month without fail. So it's pretty unfair on those of us who aren't using it to just borrow cash.

I've been monitoring and improving my credit score for over 10 years in preparation for a mortgage – which I'm now close to obtaining – and so naturally I'm frustrated Equifax / ClearScore have picked now, with little notice, to knock credit scores based on this. Their app warns me I've withdrawn cash on a credit card in the last 3 months, as I was recently abroad. Thankfully it doesn't appear to have knocked down my score yet, but that may change.

I've made a complaint to ClearScore, and will do the same for Equifax if, assumingly, ClearScore say it's due to their rules. I'd encourage anyone in the same position to do the same, so they can once again view travel credit card withdrawals abroad neutrally.

[Deleted User]

It doesn't matter what the CRA thinks, or whether they change the pretend scores they give you.

Lenders are the ones who make the decisions. Occasional overseas transactions are not a problem, especially when the card is being cleared in full each month.

There's no point in complaining to the CRAs, as they're entitled to think anything they want about cash withdrawals. It doesn't matter.

Alex9384

In the UK we don't have a real credit score, so you can ignore it.

Lenders never see your "score" so they don't care about what number is Equifax showing you. Each lender have their own internal scoring system that you can't see. Only focus on your credit history, not the made up score.

cymruchris

I made a single cash withdrawal in Germany on my Barclaycard rewards card in February as they have the best deal from my range of cards - paid in full - and that hasn't been picked up by any of the CRA's yet interestingly. (And don't worry about the score)

penners324

You've made a withdrawal of cash in a credit card and the card company have reported that fact to the CRAs.

Nothing wrong with any of that.

There are current accounts with debit cards that allow cash withdrawals without a fee as well...

Chris4

Thanks all

cymruchris

I spoke too soon - Equifax is having a hissy fit over me withdrawing cash in the most economical way - and for the first time in months my score moved!!! And I thought it was just broken