Accidentally used credit card for cash point withdrawal

Hoenir

electriccactus said:

Hoenir said:

pjs493 said:

lisyloo said:

Can you let me know the source that says this a big no-no.
lots of us take cash out abroad on credit cards on holidays.

why do you think there might be a fee?
usually you get charged interest but on zero days that will be zero.

Check out the credit card section on this website, it talks about how it’s bad to take out cash on a credit card in the UK. Withdrawing overseas is different, but in the UK it’s bad for your credit file as it looks like you don’t have cash to hand and therefore you’re resorting to using your credit card to get access to cash. 

Many credit card companies charge a fee for cash withdrawals. I have no idea if mine does or not because I’ve never done it before. 

As you've immediately repaid the money there's no issue. This is with reference to those who are withdrawing cash to fund their day to day expenditure. 

Anyone reviewing the credit file will have no idea whether it was repaid immediately or not, only that £x was a cash advance in that month.

That could still be an indication of financial distress. Whether a lender takes issue with that is up to them.

The reported balance is zero. 

There'll be other indications in this regard not just a one off withdrawl. 

molerat

As a side note it is possible on some cards, definitely LBG cards, to disable cash withdrawals.

pjs493

molerat said:

As a side note it is possible on some cards, definitely LBG cards, to disable cash withdrawals.

Thanks for this. I’ll look into it. Might be a good idea to avoid making the same mistake in the future. I just wish banks would brand their debit and credit cards differently so it’s easier to tell them apart with a quick glance. 

JonVarnas

pjs493 said:

molerat said:

As a side note it is possible on some cards, definitely LBG cards, to disable cash withdrawals.

Thanks for this. I’ll look into it. Might be a good idea to avoid making the same mistake in the future. I just wish banks would brand their debit and credit cards differently so it’s easier to tell them apart with a quick glance. 

TBF though, it was your own mistake

lisyloo

I've seen cash marked on my credit file before.
I don't recall anything on the credit report to indicate that it was a foreign withdrawal or not.

pjs493

JonVarnas said:

pjs493 said:

molerat said:

As a side note it is possible on some cards, definitely LBG cards, to disable cash withdrawals.

Thanks for this. I’ll look into it. Might be a good idea to avoid making the same mistake in the future. I just wish banks would brand their debit and credit cards differently so it’s easier to tell them apart with a quick glance. 

TBF though, it was your own mistake

Yes. It was. I accept it was my fault. But it happened because the cards look very similar and in Apple Pay (which is how I usually pay for things) the cards are completely different colours. My debit card is the same colour in both real life and Apple Pay, but the credit cards look completely different. That’s how the mistake happened. I picked the card that looked like my debit card, forgetting that the physical credit card looks completely different than it does in Apple Pay. 

pjs493

To add, it turns out I’ve been charged £7.50 and not £3 as the person I spoke to via the app chat function stated. So I may well call if I have spare time to do it. 

molerat

pjs493 said:

To add, it turns out I’ve been charged £7.50 and not £3 as the person I spoke to via the app chat function stated. So I may well call if I have spare time to do it. 

How much did you withdraw as £3 is usually the minimum, the actual charge being a %.

pjs493

molerat said:

pjs493 said:

To add, it turns out I’ve been charged £7.50 and not £3 as the person I spoke to via the app chat function stated. So I may well call if I have spare time to do it. 

How much did you withdraw as £3 is usually the minimum, the actual charge being a %.

£250. When I spoke to someone via the in app chat I was told I’d be charged £3 because it was a minimum £3 charge and 3% for transactions over £300. I’ve not had a chance yet to ring up. £7.50 seems excessive. 

pjs493

As an update, by credit report has been updated following the accidental cash withdrawal. Transunion/Credit Karma didn’t make a note of it, just reported the balance, and my score improved by 15 points (probably due to the increased length of time at my address). However, the ClearScore app saw my score go down by 57 points (!) and notes I made a cash withdrawal on a credit card. Looks like it’ll stay there for three months. I know the credit score number isn’t a ‘real’ thing, but the note on my file will obviously have an impact.