Barclaycard Cash Withdrawls.

galdous1

Generally speaking, of course, it's wise to follow MSE advice and never to use Credit Cards for cash withdrawls.
However, with the Barclaycard Rewards card (where cash withdrawls worldwide are fee-free), doesn't it make good sense to use this method providing you have a dD set up to PAY THE FULL BALANCE next month?
I feel that this method should not detrimentally affect one's credit score providing you can also show a blemish-free payment record.

CliveOfIndia

You can ignore your credit score as it means nothing.

Regular cash withdrawals on a credit card do, however, tarnish your credit history.  It's fine for the occasional withdrawal whilst abroad (and can work out cheaper than some debit cards).  But there's nothing to be gained by making regular withdrawals in the UK, and you run the risk of damaging your credit history.

cymruchris

galdous1 said:

Generally speaking, of course, it's wise to follow MSE advice and never to use Credit Cards for cash withdrawls.
However, with the Barclaycard Rewards card (where cash withdrawls worldwide are fee-free), doesn't it make good sense to use this method providing you have a dD set up to PAY THE FULL BALANCE next month?
I feel that this method should not detrimentally affect one's credit score providing you can also show a blemish-free payment record.

I agree with the sentiment of your post - but with one correction - it shouldn't affect your credit HISTORY- and not your magical, mythical, made-up score. (As is said many, many times, nobody sees this apart from you).

It's a useful card benefit that I used in Germany a while back when I ran out of Euros, knowing that it was a fair exchange rate, no interest and fee-free.

For the following 3 months my CRA reports were bouncing up and down with warnings about withdrawing cash on a credit card.

My magical mythical made-up score dropped - but soon recovered.

Card benefits have changed in recent years, but the good old CRA's appear slow to adapt in the way they analyse and report data.

eDicky

It does indeed make good sense, if you find the need to withdraw cash from a foreign ATM, to use your Barclaycard Rewards credit card for the purpose. The method may detrimentally affect your fictitious credit score but your credit history will suffer no ill effect if your repayments and other record of good card management are fine.

NoodleDoodleMan

As long as the ATM doesn't impose a fee for currency withdrawals - Barclaycard have no control over foreign bank machine commissions.

jbrassy

While I agree that credit scores are mostly nonsense, your credit history is not. It's probably better to withdraw cash on a debit card. Starling and First Direct offer unlimited fee free withdrawals abroad. 

I would rather do this than damage my prospects of getting a mortgage deal I wanted in the future.