Credit cards with low cash advance rates
Compare credit cards with cash advance rates well below what most cards charge.
Compare credit cards with competitive cash advance rates
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How we picked these
Key takeaways
- Find cards with cash advance rates well below what most credit cards charge.
- Cash advances attract fees, usually 3%, and interest is charged from day one.
- Explore personal loans for lower interest or contact National Debt Helpline for support.
What's a low credit card cash advance rate?
- Most credit cards charge relatively high interest rates on cash advances.
- But there are a few cards with much lower cash advance rates, which you can compare in the table above.
Watch out for cash advance transaction fees
Even if you get a card with a low interest rate, you'll still have to pay a cash advance fee for these transactions. Cash advances also won't be eligible for any interest-free days your card may offer for standard purchases, which means interest will be charged from the time the transaction is made until it's paid off in full.
What transactions are counted as "cash advances" on a credit card?
If you withdraw cash from an ATM, or something similar like buying foreign currency, or using your credit card to gamble, that's a cash advance transaction.
With these transactions you get charged interest immediately, at the cash advance rate. And you get charged a cash advance fee (usually 3% of the purchase).
Our expert says: Cash advance transactions are almost always a bad idea
"Sometimes in life you can't avoid withdrawing cash on your credit card. You might be overseas or shopping somewhere that only accepts cash and can't use a debit card. But in general it's a bad idea. Use cash or a debit card if you can, because cash advance transactions incur a fee and interest charges apply right away (unlike with most card spending that gives you interest free days to pay it off)."
What else should I keep in mind when comparing these cards?
- Cash advance fee. This fee is charged every time you make a cash advance transaction. It’s usually presented as the greater of a fixed dollar amount or percentage. For example, $3 or 3% of the transaction, whichever is greater.
- Purchase rate. Remember that the standard variable cash advance rate may not be the same as the purchase rate, so it's important to look at both.
- Annual fee. Credit card annual fees can range from $20 to $400 or more. When considering this cost, weigh up the features of the card and consider whether the benefits will offset the annual fee, so that you can choose a product that's affordable for you.
- ATM fees. Some credit cards charge a separate fee when you withdraw money from an ATM. Fees from ATM operators may also apply – especially if you're getting cash out with your credit card overseas.
- International transaction fee. Most credit cards charge a fee of 2-4% for transactions made in a foreign currency. If you plan on using a low cash advance rate credit card for transactions overseas or online (such as foreign ATM withdrawals or Internet gambling), make sure you also consider this fee and how it could affect the overall cost of a cash advance.
- Overseas fees for cash advances. Note that international transaction fees can also apply when you use your card to make purchases through international websites. Some credit cards also apply different cash advance fees for domestic and international transactions.
Example: How much would it cost to withdraw cash using a credit card?
Let's say you need to withdraw $1,000 cash from a credit card. You plan to pay it off over 6 months, making $200 repayments. There's a 3% cash advance fee.
- Your total advance is $1,030 (cash withdrawal plus the fee).
- With a 21.99% cash advance rate, you end up paying $97 in interest and the cash advance fee.
- With a 9.99% cash advance rate, you end up paying $60 in interest and the cash advance fee.
Remember: In this scenario, you'd still have to pay the cash advance fee with either of the cards, and the costs would be different if you already had a balance or spent more with the card. You can use a credit card repayment calculator to estimate the costs for other cash advances or balances on your card.
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I need to organise a low cash advance interest rate credit card ASAP, for the gap needed in a settlement for an apartment on this Thursday afternoon. Is there any card I can apply for online that will make its services available for use to draw a cash advance to be transferred into my access account with ANZ who charge 21% on cash advances which will cost me $3000 for the $15000 I need to have for the gap in the monies available for the settlement. i.e. any online application that will give me the card to use for Thursday March 28th a.m.? Thank you,
Vardi
Hello Vardi,
Thanks for the question.
The average time for a credit card to be approved, received, and activated is approximately two weeks. There are loans such as Payday loans which you may be able to apply for and received on shorter notice.
More information about these can be found on our payday loans page.
I hope this helps,
Marc