Credit card withdrawal

[daniela]

When I first got my credit card a few years ago, someone told me that if I withdrew cash from an ATM with it, it would go against my credit rating or something of the sort. Is this true? Cheers.

[themas]

No. It would only have an effect if you withdrew so much that you couldn't pay it back and went into arrears. But what does happen is that you start paying interest on the withdrawn sum from the date you took it, so it is not a good idea if you can get the money elsewhere (eg from your bank account).

[Oneeyedvic]

My wife withdrew money from her Barclaycard by mistake (raining heavily and in a hurry). It was only �20.00 and she only figured out what had happened when she got her next statement.

She got charged �2 for the privilege. She paid the bill in full and thought no more of it.

The following month she got a further charge of �1 as there was still interest payable on it!

[vehelpfulguy]

If you draw out money from an ATM on your CREDIT card then you start paying interest on the amount as soon as you withdraw it.

For a normal purchse from a shop you only start paying interest when the bill arrives.

So drawing out money on a CREDIT card is a BAD idea.

[dollydoo]

the only time credit rating is affected is when you cannot meet monthly repayments. Its always best to at least make the minimum payment, that way your credit rating will always show that your payments are regular and on time which goes down well when other lenders check out your payment history.

[Pippa68]

Veryhelpful guy is right ~ never use your credit card at an ATM!