What Card Use Is Actually Classed As A Cash Advance?

Best Cash Advance Credit Card

The Bankwest Zero MasterCard is the ideal card for those who enjoy the convenience of withdrawing cash using their credit card. With an amazingly low cash advance rate and no annual fee this card will help you save.

• $0 annual fee
• 1% p.a. for 6 months (reverts to 17.99% p.a.) on purchases
• 4.99% p.a. for 12 months on balance transfers
• Cash Advance Rate of 18.99% p.a.
• 55 days interest free
• Minimum Income Requirement of $19,000 p.a.
• Awarded ‘Best Transactor Credit Card’ by Money Magazine 2010

Read the Bankwest Zero MasterCard terms and conditions.

The interest charged for cash advance credit cards is high. If you have ever used your credit cards to get cash then you know how costly they can be.

Not only will you be charged a significant interest rate, somewhere around 25 percent depending on your card, but you will not get any interest free days. What that means is that as soon as you take out cash you will begin paying interest on that transaction. Even if you pay your bill in full each month you will still pay interest on the cash advance. While it may seem that avoiding cash advances will keep you from paying these fees there are other transactions that the card company considers cash advances and will incur the same charges.

Charges for cash advance credit cards:

• If you use your card to get cash back from a grocery store it is often charged as a cash advance. Even if you do get the cash back in addition to the charge for your purchases it can still be deemed a cash advance by your credit company.
• If you go to an ATM and withdraw cash it will be charged like a cash advance.
• When you travel overseas and buy foreign currency or travellers cheques you will draw charges for cash advance credit cards.
• Should you transfer money to another account from you credit card it may also be treated as a cash advance.
• Some companies consider all gambling transactions cash advances. This includes food or beverages you might purchase at a gambling establishment.
• The credit card cheques that you receive from you company might also be treated as cash advances. Be very careful if you decide to use them. If you do not use those cheques then shred them as quickly as possible.

It is important to understand the cost of cash advance credit cards. The easiest thing to do is to not ever use your card to get cash. Not as cash back after a transaction and not from an ATM. The cash you take out today will start costing you more immediately. Ask yourself first if you really need the cash. Then ask if there is some other way to get it that will not cost you as much in interest. Can you simply use your card for the purchases instead of cash or get what you need from another shoppe that will accept plastic. Also, avoid using your card to gamble. If you have trouble with your credit or paying bills you might want to just avoid gambling all together. But, if you do plan to gamble save up and use cash, do not borrow it from your credit card.

If you will be travelling you should look into a card specifically designed for travel. This can help you to avoid those cash advance credit cards charges associated with purchasing foreign currency and travellers cheques. It may require you to get another credit card therefore paying another annual fee. However, that fee is probably going to be less then your interest charges for even a short holiday’s expenses.

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%