Low Cash Advance Rate Cards

Withdraw cash from your credit card without incurring high cash advance fees. Compare low cash advance rate credit cards here.

An important feature of credit cards is that they allow you to withdraw cash from ATMs or through EFTPOS terminals in the form of cash advances. The general advice is that you should avoid using your credit card for a cash advance because it normally charges a higher interest rate when compared to your card’s purchase rate. The good thing is you can find credit cards that charge a standard rate across purchases and cash advances, but even when you use such cards for cash advances, you would usually still have to pay some kind of a cash advance fees as well.

If you do end up getting a cash advance using a low cash advance rate card, you’ll benefit from repaying the borrowed amount as soon as possible.

Comparison of cash advance credit cards

Rates last updated September 29th, 2016.

ME Bank frank Credit Card

Interest rate changed from 9.99% p.a. to 11.99% p.a. on purchases, balance transfers and cash advanc

September 19th, 2016

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Jonathan Choi Jonathan
Cash advance rate (p.a.) Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. 11.99% p.a. $0 p.a. Go to site More info
Newcastle Permanent Value+ Credit Card
Enjoy a competitive annual fee and interest rates on purchases, cash advances, and balance transfers.
11.49% p.a. 11.49% p.a. $49 p.a. Go to site More info

How do low cash advance credit cards work?

Low cash advance rate credit cards are similar to conventional credit card though, as the name suggests, they charge a lower interest on cash advances. While they generally charge lower interest on cash advances when compared to most of their competitors, even the lowest cash advance rates currently on offer aren’t particularly low.

cash advance at ATM machine

What exactly is a cash advance?

A cash advance is when you use your credit card to access money. Withdrawing money from an ATM using your credit card is one example of a cash advance, and you can also get cash advances at supermarket checkouts and stores that allow cash back transactions. Using your credit card to buy foreign currency also qualifies as a cash advance, and the same applies to buying travellers cheques. Using your credit card at gambling tables could also account for cash advances.

While a low cash advance rate card can help you save some money in the form of interest, it is important you know that cash advances start incurring interest from the moment you withdraw the money, and interest free days never apply on cash advances.

What is the difference between cash advances and purchases?

While a cash advance refers to you using your credit card to access money, purchases refer to instances when you use your credit card to pay for products and services. Most credit cards charge different purchase and cash advance rates, and cash advance rates are typically higher.

How much do cash advances cost me?

Interest rates charged on cash advances vary a bit, but they are generally pretty expensive even in the ideal case scenarios.

Cash advance fees apply on all cash advances. They are usually the higher of a couple of dollar fee or a set percentage of the value of the total transaction. These fees range, again they are dependent of the actual card issuer but generally speaking they range in the 1.5% to 4% region.

The easiest way to avoid these costs is to not use cash advances at all unless you absolutely must.

What are the benefits of low cash advance rate cards?

Low cash advance rate credit cards, apart from the obvious low cash advance rate benefit, can offer more and here’s what you can expect:

  • Allocation of payments. When you make payments towards your credit card, your card issuer directs the payment towards the highest interest rate transaction first, so you can be certain that your payments work in repaying the cash advance first.
  • Promotional offers. Certain such cards come with promotional interest free periods, giving you the ability to save in the form of interest. Longer repayment periods and favourable payment terms can lead to noticeable savings, given that even a seemingly trivial difference in percentage can translate into a considerable dollar value.
  • Easy access to funds. Since these cards are conventional credit cards,you can look forward to using them in-store, online, and over the phone. If your card comes with a Visa or MasterCard affiliation, you can use it just about anywhere in the world.

How to compare low cash advance credit cards

Not all low cash advance rate credit cards are the same, so when you consider applying for one, take some time to compare the following aspects:

  • Interest rate. Take a look at the cash advance rate you have to pay, and remember that the purchase rate is not the same as the cash advance rate. Look for a low cash advance rate, but don’t ignore the purchase rate.
  • Cash advance fee. You might have to pay a percentage of the cash advance amount or a fixed percentage as a cash advance fee, and this fee can vary from one card to the next.
  • Annual fee. A typical no-frills card charges little to no annual fees, but you can’t expect much from a card like this in terms of features. As the features begin to add up, you can expect to pay higher annual fees.
  • Will you be able to pay it off by the end of the promotional period? If you’re getting a card because of its promotional interest rate offering, establish if you’ll be able to repay the money by the end of this period, because if you don’t you could have to start paying considerably high interest on any outstanding balance once the promotional period ends. The longer the promotional period, the longer you get to repay the money you owe.

What else should I bear in mind?

Using a credit card for a cash advance is not on the top of most people’s list, but there are instances when you may have no other option. If you end up getting a cash advance using your credit card, keep the following in mind:

  • Budget to clear balances. The smartest way to use credit cards is to ensure that your budget allows you to pay your outstanding balances in full each month. By doing this, you pay as little as possible in the form of interest.
  • Use online platforms. When you use your card for a cash advance, you should not wait for the statement to make your payment, especially if you have access to the required funds before then. This is because interest on cash advances starts building up from day one. As soon as you have the money, make an online payment so interest stops adding up. You can also use your card issuer’s online platform to keep track of your expenses, so you don’t have to deal with surprises at the end of the month.
  • Overseas cash advances. Apart from paying interest on cash advances, when you use your card for cash advances outside Australia you could have to pay ATM fees as well as international transaction fees. International transaction fees can also apply when you use your card to make purchases through international websites.
  • Rewards. If your credit card comes linked to a rewards program know that cash advances don’t earn any reward points, as is also the case with transferred balances.

Start comparing low cash advance rate cards

How do I apply for a low cash advance credit card?

Applying for a low cash advance rate card is not difficult, and most credit card issuers give you the ability to apply online. To apply, you can click on the ‘Go to Site’ button next to the card you wish to get. Before you do, keep in mind you have to meet certain eligibility criteria, as mentioned below:

  • You should be over 18 years of age
  • You should be a permanent resident of Australia or an Australian citizen
  • You should have good credit rating

Applying requires you to part with a variety of information, which often includes the following:

  • Your name, date of birth, marital status, and number of dependents
  • Your residential status, home address, email address, and phone number
  • Your employer’s name and contact details
  • Details about your income, expenditure, assets, and liabilities

Frequently asked questions

Why do cash advances attract high interest rates?

People tend to use their credit cards primarily for purchases, and this is why most credit card issuers promote their purchase rates, and not cash advance rates. Cash advance rates are typically higher than purchase rates mainly because of the reduced competition in this realm.

Do I have to repay a cash advance within a given time period?

You can continue making minimum monthly payments until you clear the balance completely, but by doing so you would end up paying a tidy sum as interest. With cash advances, you should try to repay the entire amount due as soon as possible to save on interest.

What other options do I have to get money in a hurry?

You can consider getting a secured or unsecured personal loan – both tend to charge lower interest rates when compared to credit cards. Just how quickly you get access to funds depends on the loan issuer.

The most popular use of credit cards is ultimately, using them for purchases. Banks therefore tend to only promote the ‘purchase’ rate, usually leaving the much higher cash advance rate hidden in the terms & conditions. Cash advances are where financial issuers can charge a bit more because there is less competition for cash advance interest rates.

All it takes is one cash advance to incur a $2-$10 withdrawal fee.

Learn how to use cash advances responsibly and save on your interest repayments and fees

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American Express Essential Credit Card
American Express Essential Credit Card

Interest rate

14.99

Annual fee

0
More info
ME Bank frank Credit Card
ME Bank frank Credit Card

Interest rate

11.99

Annual fee

0
More info
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

149
More info
ANZ First Visa Credit Card - Exclusive Offer
ANZ First Visa Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

30
More info
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10 Responses to Low Cash Advance Rate Cards

  1. Default Gravatar
    deb | May 9, 2016

    I would like to know if you can do a balance transfer my current card is charging 19.99 on the cash amount what do you offer best rate for balance transfer
    thanks

    • Staff
      Anndy | May 9, 2016

      Hi Deb,

      Thanks for your question.

      Please note that finder.com.au is a financial comparison and information service and is not a representative of any credit card company.

      Yes, it is possible to transfer your credit card balance to another credit card with a different issuer. You can refer to this page to know which banks will and will not allow you to transfer your balance to. You can then start comparing your balance transfer credit card options here.

      I hope this helps.

      Cheers,
      Anndy

  2. Default Gravatar
    Kate | June 11, 2014

    Are there any credit cards that DON’T allow cash advances – in case your will power isn’t 100% …. Thanks for replying

    • Staff
      Shirley | June 12, 2014

      Hi Kate,

      Thanks for your question.

      Unfortunately there aren’t any credit card that don’t allow cash advances, this is a standard feature.

      If you don’t like the idea of cash advances, you may want to opt for a charge card instead.

      Cheers,
      Shirley

  3. Default Gravatar
    AB | August 22, 2013

    If I do a cash advance on the Citibank Platinum credit card of $30,000.

    I will be charged 3.5% on the amount of $30,000 and the interest rate is 0.00% for the first 6 months is that right?

    AB.

    • Staff
      Jacob | August 22, 2013

      Hi AB.

      You can read the card’s review on this page. There is currently an interest free period on cash advances. You will not get charged any interest on any cash advances you make during this term. During the interest free period, you will only have to make the minimum monthly repayment. After this interest free period, the cash advance rate will be charged on any unpaid cash advances transacted during the cash advance promotional period.

      Thanks for your question.

  4. Default Gravatar
    William | May 6, 2013

    If I choose to pay cash up front to exchange for Euros and GBP, should it not be a better rate for me than for someone using a card of any sort?

    • Staff
      Jacob | May 6, 2013

      Hi William. Thanks for your question. To clarify: you’re looking to exchange currency, and you’re wondering whether you’d get a better rate if you exchanged cash at an exchange office when compared to using a credit card to make a purchase at a foreign country? To answer, it really depends on the fees and charges at the exchange office where you get your cash. A credit card will incur a cross currency conversion fee, which is usually about 2-3% – in addition to an exchange margin that is applied by the issuing bank and the card scheme. This can be expensive; however, in my experience, no more expensive than the rates you can get at an exchange office – there can also be a significant fee for using these services too. Jacob.

  5. Default Gravatar
    Vardi | March 26, 2013

    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

    • Staff
      Marc | March 26, 2013

      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 may be able to applied for and received on shorter notice, more information about these can be found here.

      I hope this helps,
      Marc.

Credit Cards Comparison

Rates last updated September 29th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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