Overseas cash withdrawal on credit card impacting credit file

Dallybally

Hi. I’ve just used an RBS black credit card abroad for cash withdrawals, there’s 0 fees etc and I get 1% cashback, so it beats any of the recommended cards on MSE. You have to have a premier account to get one though so it’s not widely available, presume that’s why it’s not on here. 

However, my clearscore file is moaning at me that I used a credit card to withdraw cash, apparently it makes it look like you’re short on cash to lenders. I can understand that, but withdrawing €100 abroad to get the best rate shouldn’t be impacting. 

Should I contact RBS to complain? Anyone else encountered this?  MSE does recommend some credit cards for overseas, so this could be their recommendation affecting people’s credit.  

Thanks a lot. 

Caz3121

happens with my Halifax overseas card...I would expect it happens with any credit cards used for cash withdrawal. How do you believe it has affected your credit?...have you been declined something based on this?

Brie

Your credit score is meaningless.  And I've never seen a cash withdrawal showing on anyone's credit history which is what any bank/lender would look at. 

If you have used your card for anything (purchase/withdrawal/etc) and clear it in full then there's no problem.  There's unlikely to be a problem if you don't clear it in full as long as you don't miss payments or have an ever increasing balance. 

Dallybally

Caz3121 said:

happens with my Halifax overseas card...I would expect it happens with any credit cards used for cash withdrawal. How do you believe it has affected your credit?...have you been declined something based on this?

No, but it’s showing as a negative factor, I know the “score” is meaningless but the factors must be based on what lenders look at. I’m away quite a lot the rest of this year, going to be quite a few more cash withdrawals, worried it could impact 

Dallybally

Brie said:

Your credit score is meaningless.  And I've never seen a cash withdrawal showing on anyone's credit history which is what any bank/lender would look at. 

If you have used your card for anything (purchase/withdrawal/etc) and clear it in full then there's no problem.  There's unlikely to be a problem if you don't clear it in full as long as you don't miss payments or have an ever increasing balance. 

I will clear it in full, but there’s always a big balance, I put all my spending through credit cards for the cash back / points, can they tell I’ve paid in full every month?

Caz3121

Dallybally said:

No, but it’s showing as a negative factor....

I get a 'negative factor' when I spend a large amount on an individual card even though it is less than 10% of my total credit available (across all cards) always pay in full and not needed to apply for any credit so no idea if has any impact

MorningcoffeeIV

Dallybally said:

Caz3121 said:

happens with my Halifax overseas card...I would expect it happens with any credit cards used for cash withdrawal. How do you believe it has affected your credit?...have you been declined something based on this?

No, but it’s showing as a negative factor, I know the “score” is meaningless but the factors must be based on what lenders look at. 

No, they really mustn't.

Lenders base their assessment on risk.

CRAs base their assessment on change.

Occasional overseas cash is not a problem. There's no point in complaining to RBS that a company that doesn't lend money thinks you're risky.

eskbanker

Dallybally said:

Should I contact RBS to complain?

Why would you do that, i.e. what do you believe they've done wrongly?  If they've simply reported a factual matter to a credit agency, then that's what they're supposed to do, and can hardly be held accountable for how that company chooses to interpret that....

Doshwaster

Caz3121 said:

Dallybally said:

No, but it’s showing as a negative factor....

I get a 'negative factor' when I spend a large amount on an individual card even though it is less than 10% of my total credit available (across all cards) always pay in full and not needed to apply for any credit so no idea if has any impact

Depends on what factors card issuers are looking for. Someone who has a card but hardly ever uses it isn't profitable. Someone who has increasing balances each month and only pays the minimum is high risk of defaulting. Someone like you who uses the card a lot but always pays off the balance in full is an attractive customer so you may find that this "negative" mark leads to you getting offers from other card providers.

As long as your credit score isn't sinking month on month then not having a perfect score isn't anything to worry about. 

zagfles

Dallybally said:

Hi. I’ve just used an RBS black credit card abroad for cash withdrawals, there’s 0 fees etc and I get 1% cashback, so it beats any of the recommended cards on MSE. You have to have a premier account to get one though so it’s not widely available, presume that’s why it’s not on here.

The summary box says there's a 3% cash fee!

https://www.rbs.co.uk/credit-cards/reward-black-credit-card.html

NoodleDoodleMan

"Hi. I’ve just used an RBS black credit card abroad for cash withdrawals, there’s 0 fees etc and I get 1% cashback, so it beats any of the recommended cards on MSE."

Isn't there a significant monthly fee for this card ?

So the cards recommended by MSE might be a better deal after the "bottom line" is calculated ?