Need to withdraw cash from your credit card? Compare credit cards with the lowest cash advance rates and cash advance fees.
A credit card cash advance typically refers to the withdrawal of a sum from your credit card account, delivered in Australian banknotes either over-the-counter or from an ATM.
But your card issuer may also define the following credit card transaction types as cash advances:
Most credit cards, especially those issued by the Big Four banks, charge a very high interest rate for cash advances. Typically this rate will be even higher than the rate charged for unpaid purchase balances, and it will often fall in the range 21%-22%p.a.
Yes, some credit cards do have a much lower interest rate for cash advances. However, 'lower’ is a relative term here, because a rate of between 10% and 13% p.a., charged by some smaller banks and credit unions, is low for a credit card but relatively high when compared with personal loan, secured loan and overdraft interest rates.
Also note that a card which advertises a low interest rate for purchases may still have a rate of over 20% p.a. for cash advances, or may not even offer cash advances.
No. The 44 or 55 interest-free days available on purchase transactions do not apply to cash advances. Interest on cash advances will be charged from the date of the transaction until the date of full repayment.
Most credit cards charge a cash advance fee as well as interest. This may be a fixed amount (e.g. $3 per transaction) or a percentage (e.g. 2% of the amount withdrawn) or the greater of the fixed amount and the percentage (e.g. $3, or 2% of the withdrawal amount, whichever is greater).
Also bear in mind that many credit cards charge an annual fee, which needs to be counted as part of the cost if you are just going to keep the card in your wallet for the purpose of cash advances.
A cash advance is an instant, unsecured loan – no paperwork, no delay, no questions asked. The card issuer is taking a bigger risk with a cash advance than other institutions do when making personal loans, home loans and other loans secured on a fixed asset.
No. Rewards points are earned on eligible purchases, not on cash advances and cash equivalents. A cash advance is not an eligible purchase for the purpose of rewards points.
When assessing the value to you of any credit card, don’t just look at one feature. Take into account other attributes, such as rewards points, cashback, complimentary insurance, free flights and airport lounge access.
Also consider any negative features, such as the annual fee.