10.12.2025 08:40
Experts indicate that withdrawing cash advances from credit cards can quickly lower credit scores, directly negatively affecting applications for personal and auto loans. As the cost of living increases, maintaining a good credit score becomes more important, and the most effective methods for preserving it include making regular payments, using a low percentage of the credit limit, and monitoring the credit report.
With rising expenses and increased credit card usage, credit scores have become a decisive factor in citizens' financial lives. According to financial advisors, millions of people unknowingly lower their credit scores due to seemingly innocent habits, creating significant obstacles in both credit applications and contract processes.
BANKS CONSIDER IT A "HIGH RISK SIGN"
Experts indicate that withdrawing cash from credit cards is viewed by banks as a "high risk sign." While most consumers perceive this action as harmless, banks consider cash advances as an indicator that the individual is experiencing cash flow issues. As a result, a sudden and sharp decline in the credit score can be observed.
"THIS SITUATION CAN NEGATIVELY AFFECT AUTO AND PERSONAL LOANS"
Financial experts warn that "this situation can negatively affect not only credit applications but also auto loans, personal loans, and even some phone line contracts." Additionally, it is stated that although many individuals believe they will repay the cash they withdraw in a short time, the system punishes this action from the outset.
CRITICAL WARNING FROM EXPERTS
Experts emphasize that certain habits must be followed to maintain a good credit score; they recommend making payments on time, not fully utilizing the credit card limit, and not closing old accounts. It is noted that keeping the limit below 30% is considered safe, and regularly checking the credit report helps prevent potential errors.