Save $144 by not using your credit card to get cash out | Dollar Saver tip #68
Key takeaways
- Avoid credit card cash advances to skip immediate fees around 3% and interest charges.
- Australians make $400 million in cash advances monthly attracting an average $144 in yearly fees.
- Check your card's terms for varied cash advance definitions and high interest rates up to 29.99% p.a.
Save: up to $144
Tip overview:
If you've ever used your credit card to get cash out at an ATM, you've made what's known as a cash advance.
Unlike purchases, cash advance transactions attract a fee worth around 3%. And you're charged interest straight away.
But Australians still make around $400 million worth of cash advances on their credit cards each month.
Finder analysis shows that this works out to around $400 per card – and $12 in fees – every month.
Those fees add up to $144 per year, not including interest.
Did you know?
Credit cards typically have a higher interest rate for cash advances – the highest rate is currently 29.99% p.a.
Both the interest rate and cash advance fee can vary depending on the credit card.
So can the definition of a cash advance, which means sometimes you could pay these costs without realising it.
You also don't earn points on cash advances.
So it's worth checking the terms and conditions or contacting your credit card company to find out what's counted as a cash advance.
And by avoiding cash advances entirely you'll save on average $144 in a year.