Best for interest-free period on cash advances
RBFCU CashBack Rewards Mastercard®
|Rewards||2% cash back|
|Minimum Credit Score||630|
Best for low fixed APR
ECU Platinum Preferred Visa® Credit Card
|Minimum Credit Score||670|
Best for gas rewards
PenFed Platinum Rewards Visa Signature® Card
|Welcome Offer||$150 points|
|Minimum Credit Score||670|
What’s changed in 2020?
Cash advances remain a feature that few should perform if they can help it. We’ve added the PenFed card to our list this year as it’s a solid card outside of its cash advance capabilities, earning strong rewards on gas and supermarkets. .
What exactly is a cash advance?
A cash advance is when you use your credit card to access money, for example, if you get cash out of an ATM. Cash advances can also include “cash equivalent” transactions, such as using your credit card to buy gift cards, foreign currency, traveler’s checks or for gambling transactions.
As these transactions give you access to actual money or an equivalent, they typically attract a higher interest rate, as well as a cash advance fee of around 5% or a flat fee, whichever is greater, of the total transaction.
What else should I keep in mind?
If you end up getting a cash advance using your credit card, consider the following:
- Budget for repayments. The longer you carry a balance on your credit card, the more interest you will pay. Factoring repayments into your budget, or using savings to clear the balance, can help keep these costs to a minimum.
- Make a payment as soon as possible. Each day you carry a balance from a cash advance, interest is calculated daily. By making payments before your statement is due, you can reduce the overall cost of a cash advance.
- Overseas fees for cash advances. If you use your credit card to get cash out while traveling overseas, you could also have to pay ATM fees and international transaction fees.
- Rewards. If your credit card comes linked to a rewards program, any cash advances you make won’t be eligible for rewards.
How do low cash advance credit cards work?
They are just like regular credit cards except they offer a competitive interest rate on cash advances — many of these cards actually charge the same interest rate for both purchases and cash advance transactions.
These transactions also won’t be eligible for any interest-free days your card may offer for standard purchases, which means interest will accrue from the time the transaction is made until it is paid off in full.
What are the benefits of low cash advance rate cards?
They provide an affordable way to use your credit card for a cash advance transaction and can particularly useful if you need extra funds but can’t use your credit card to make a payment. For example, if you’re overseas or shopping somewhere that only accepts cash.
How do I apply for a low cash advance credit card?
Applying for a low cash advance rate card is simple and can be completed online in around 10-15 minutes. After comparing cards and choosing one that suits your needs, just click the “Go to site” button. Make sure you meet the eligibility for the card first, it may vary but it generally includes the following criteria:
- At least 18 years old.
- A resident of the US.
- A good credit rating.
Have the following documents and details ready to speed up the process:
- Full name, personal contact information and Social Security number.
- Housing status and monthly rent or mortgage payments.
- Employment status and gross annual income.
How do I choose the best low cash advance credit card?
Not all low cash advance rate credit cards are the same, so consider a few factors before applying:
- Do you really need to perform a cash advance? Cash advances are generally a poor idea thanks to their high fees and interest rates.
- Look at the interest rates. The standard variable cash advance rate may not be the same as the purchase rate, so it’s important to look at both.
- What’s the cash advance fee. This fee is charged every time you make a cash advance transaction and is usually a fixed dollar amount or percentage. For example, “$10 or 5% of the transaction, whichever is greater.”
- International transaction fee. Most credit cards charge a fee of usually 3% for transactions made in a foreign currency — make sure you also consider this fee and how it could impact the overall cost of a cash advance.
- Do you want an introductory offer? A range of credit cards offer signup bonuses and introductory 0% interest rates for purchases or balance transfers. It’s important to note that these benefits usually don’t apply to cash advance transactions, so read the terms and conditions.
Should I get a cash advance credit card?
Compare cash advance credit cards
Most credit cards come with a cash advance fee of between 3% and 5%. But there are some credit union cards that have a 0% fee on cash advances.
Frequently asked questions
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