Does using a credit card abroad have a negative impact on your credit score?

FlyingDealsUpUpAndAway

I've been offered a Nationwide Credit Card and it comes with no exchange commission. I am abroad for at least 10 nights a month for work so this would be ideal. However, I was told by someone, or heard it somewhere (honestly can't remember) that using a credit card abroad can negatively impact your credit score. I've been using a Tesco Credit Card for the last two years and my credit score has skyrocketed to 999/999 on Experian, so I don't want to lose it. However, I'm looking to leave Tesco since their merger, and I would rather have my credit card with the same bank as my current account. NB: I use 30% of the limit monthly and pay it off once the statement is produced and this is how I plan to continue using the Nationwide card if I go for it. 

eskbanker

FlyingDealsUpUpAndAway said:

my credit score has skyrocketed to 999/999 on Experian, so I don't want to lose it

Like the other UK credit rating agencies, Experian makes these numbers up and they're not seen by prospective lenders, so don't kid yourself that a 'credit score' is something real that can be 'lost'.

It is true that there are credit files, recording your access to, plus use and repayment of, credit facilities, so keeping these in good order is sensible, but trying to condense these down to a single number is meaningless, which is why the mere act of obtaining a new card would cause that fictitious number to drop, but using cards abroad isn't a negative factor so ignore whatever you heard that suggested otherwise....

DullGreyGuy

FlyingDealsUpUpAndAway said:

I've been offered a Nationwide Credit Card and it comes with no exchange commission. I am abroad for at least 10 nights a month for work so this would be ideal. However, I was told by someone, or heard it somewhere (honestly can't remember) that using a credit card abroad can negatively impact your credit score. I've been using a Tesco Credit Card for the last two years and my credit score has skyrocketed to 999/999 on Experian, so I don't want to lose it. However, I'm looking to leave Tesco since their merger, and I would rather have my credit card with the same bank as my current account. NB: I use 30% of the limit monthly and pay it off once the statement is produced and this is how I plan to continue using the Nationwide card if I go for it. 

In the UK there is no universal credit rating unlike, for example, the US. Instead here we have credit history which each company scores based on their own priorities. 

Using a card abroad to make purchases are not flagged to others on your credit history so whoever told you was pouring snake oil into your ear. Using a credit card to withdraw cash via an ATM in the UK or overseas is a different matter and will be reported. Ultimately its up to each company to make what they will of those that need a CC to get cash but generally its seen as negative. 

There are debit cards that do fee free cash withdrawals too overseas which may be a better option if you are intending to apply for credit in the short-medium term.

Brie

Agree with the others that this shouldn't have any impact whatsoever.  The only thing I've ever seen on the many credit histories I've seen is credit limit and how much is owing each month.  So I might see that you have £5k limit but since it's paid off there's a green rating for that month with a fat zero showing as you owe zilch.  All nice and rosy!!  I've never noticed anything about cash withdrawals being noted but maybe that's because the histories I've seen the people aren't taking out money abroad.

NoodleDoodleMan

"However, I was told by someone, or heard it somewhere (honestly can't remember) that using a credit card abroad can negatively impact your credit score."

Why not call Nationwide and seek their advice ?

We've used various credit cards abroad for years with apparently no such adverse impact.

Experian score has been consistently 999, in fact if memory serves it once reached 1000......I think.

I wouldn't put too much credence on what "somebody" said !!!

Desmond_Hume

NoodleDoodleMan said:

Experian score has been consistently 999, in fact if memory serves it once reached 1000......I think.

I wouldn't put too much credence on what "somebody" said !!!

Said without a hint of irony. 

username

Financial institutions like to see responsible patterns of borrowing on their cards, so what you are planning to do would benefit, as oppose to cause any problems as it would demonstrate a positive history of lending and repayment.
Don't worry about the mythical credit score, the exact number isn't cared about in the UK. America is somewhat a different story.

jbrassy

I have used a credit card abroad for several years and it hasn't impacted my ability to get accepted for mortgages. However, I do avoid withdrawing cash on a credit card, whether in the UK or abroad. If you want to withdraw cash abroad, use a debit card like Starling or First Direct.

Also, having all your banking products with one bank isn't necessarily sensible. It's better to pick and choose products from different providers which best suit your needs. I don't have credit cards with any of the banks I have current accounts with.

NoodleDoodleMan

Desmond_Hume said:

NoodleDoodleMan said:

Experian score has been consistently 999, in fact if memory serves it once reached 1000......I think.

I wouldn't put too much credence on what "somebody" said !!!

Said without a hint of irony. 

The irony of using credit cards with attractive no FX fees as travel benefits subsequently having a negative impact on the holder's credit status ?

penners324

Only impact to credit file is withdrawing cash on the credit card. Just pay for things using the card.

Desmond_Hume

NoodleDoodleMan said:

Desmond_Hume said:

NoodleDoodleMan said:

Experian score has been consistently 999, in fact if memory serves it once reached 1000......I think.

I wouldn't put too much credence on what "somebody" said !!!

Said without a hint of irony. 

The irony of using credit cards with attractive no FX fees as travel benefits subsequently having a negative impact on the holder's credit status ?

Nope. I was quite specific about the section of the post I quoted.