How to Compare Low Cash Advance Rate Credit Cards
Low Cash Advance Rate Best Buys
Low Cash Advance Rate FAQ's
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Accessing cash on credit can be a head-swimmingly-costly way of getting hold of a ten-pound note.
With separate interest rates for cash usually hidden in a credit card's terms and conditions and not forgetting those pesky handling fees - many people quickly learn to never take out their credit card instead of a debit card when waiting in line for the ATM.
However, some people need to access cash on credit - whether you need to buy a large amount of foreign currency or traveller's cheques, for gambling transactions or even when your debit card was just swallowed up by the ATM machine.
If finding yourself in one - or more - of these situations is becoming a regular occurrence - you've come to the right place - there are credit cards that are quite literally as cheap to access cash as to buy those new pair of jeans.
These cards are good for...
Anyone fed up with the extortionate interest rates and handling fees levied on to anything resembling a 'cash' transaction.
People who need to use a credit card for withdrawing cash at ATM machines or getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques or gambling transactions - including buying food or drink at a gambling establishment.
These cards are unsuitable for...
Obviously, if you can, it's always going to be better to use your debit card for any cash advances.
Aside from removing any risk of using the wrong card and ending up with a bill for interest charges and handling fees - using a debit card keeps you out of debt (overdrafts excepted).
- A history of poor credit use
Low cash advance rate credit cards, are part of the 'low rate' category of credit cards. As such, these cards generally require applicants to have a good credit rating to be accepted.
If you know yourself to a have a poor credit history it may be best to save your credit score and apply for a credit card designed especially for helping people rebuild and strengthen their credit rating.
Sadly, poor credit rating credit cards don't have the best interest rates - and these cards are pretty ridiculous when it comes to charges made for cash transactions.
Try and rebuild your credit rating, but stick to your debit card for any cash transaction you may need to make.
Look for...
When comparing low cash advance rate credit cards these are the main points you should look at to find out how cheap - or costly - using the credit card for cash advances will be.
- Cash advance interest rate
The cash advance interest rate is the rate of interest you will be charged on transactions resulting from cash advances.
This interest rate is often higher than the interest rate for purchases and also the quoted APR - which is why it's important to have a quick browse of the credit card's summary box to find the cash advance interest rate.
The cash advance interest rate is sometimes referred to as a 'cash withdrawal' rate or a 'cash transaction' rate.
The interest rate will usually be quoted as a p.a. rate - this means 'per annum' - so the rate charged on your monthly statement would be approximately the rate quoted divided by 12.
- Cash advance handling fee
Most credit cards charge a handling - or administration - fee for cash advances.
The fee charged is usually around 2% - 3% of the cash transaction amount, with a minimum fee charged of around £2 - £5.
There are low cash advance rate credit cards available that waive this cash advance handling fee - so look for these offers to save money on your cash advances.
- Interest free period - does it include cash advances?
Generally speaking credit card's interest free period usually only covers purchases - so even if you repay your full credit card balance each month you will still get charged interest on your cash advances.
Look out for low cash advance rate credit cards that include cash advances as part of their interest free period - repaying your balance in full on these cards will see you benefiting from interest free credit on both your purchases and cash transactions.
- Purchase interest rate - or APR
Remember to also check out the purchase interest rate or APR. While most low cash advance rate credit cards will also offer a low purchase interest rate - it's important to find out how much it will be.
Watch out for...
- The terms for a 'cash advance'
Generally speaking, cash advances include ATM machine withdrawals, getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques and more recently gambling transactions.
The differing include here is gambling transactions. As a fairly new addition - only within the last year - credit cards vary on how they define and charge this type of card usage.
Some credit cards will include purchasing food or drink at a gambling establish as a cash transaction. Whereas other cards only charge the cash advance interest rate - but do not impose the cash advance handling fee on gambling transactions.
If you do use a credit card when gambling - check out the terms and conditions - it will be hidden somewhere in the small print! If in doubt - phone your credit card issuer.
Don't Forget!
- Cash advances include more than just ATM withdrawals...
Credit card companies can be sneaky in the way they separate and classify different card usages - allotting any transaction even slightly resembling cash a higher rate of interest and handling fees.
Cash advances cover ATM withdrawals, getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques and also gambling transactions.
The later being the more variable and also more misleading of the "cash advances" - some credit cards will also count buying food or drink at a gambling establishment, as well as gambling itself, a cash advance.
Compare low cash advance rate credit cards
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