Cash Advance Credit Card

What is a cash advance credit card? What are the best cash advance credit cards currently available in the UK?

These are some of the most common questions, regarding a cash advance credit card, that we see on a regular basis.

Most of the over 60 UK credit cards available today with 0% offers, can be used as a cash advance credit card. A credit card cash advance is most common, when a customer uses their credit card in a cash machine, or ATM, to withdraw money.

Some card companies, also treat gambling or betting transactions as a cash advance. Other companies also treat the purchase of foreign currency, or travellers cheques, using a credit card, as a cash advance.

Cash Advance Credit Card

A cash advance on a credit card is often very easy to do. You simply stick your credit card in a cash machine and enter your PIN. However before you do that, you need to be very aware of just how expensive this type of transaction can be.

Cash Advance Credit Card

Using any credit card to make a cash withdrawal from a cash machine will lead to both fees and interest charges. These fees and charges apply as soon as you take the money out of the cash machine.

Unlike with a normal purchase, made using your credit card, there is no interest free period on a cash withdrawal. Interest will be charged from the day you take the money out of the machine, until the withdrawn amount is repaid in full.

Cash advance interest rates are often much higher than the typical credit card rate, which is typically around 19.9% APR variable. Almost all UK credit cards charge a fee, when cash advance credit cards are used to make a cash withdrawal from a cash machine, or ATM.

Typical cash advance fee and interest rates are as as follows:-

Barclaycard Cash advance: 2.99% fee (min £2.99) and 27.9% APR

HSBC Cash advance: 2.99% fee (min £3) and 27.9% APR

Cash Advance Credit Cards

With the above expensive fees and high interest rates on cash withdrawals, the best cash advance credit cards are actually those credit cards that allow customers to make 0% money transfers.

A money transfer credit card is a credit card that allows a customers to transfer money from the card directly into their bank account. A large number of the UK credit cards that did allow 0% money transfers to be made have now been withdrawn from the market. There are still a few cards available. However, these credit cards will typically charge a higher fee of up to 4%, for each money transfer.

For many customers a balance transfer credit card may offer a better choice. The customer can transfer the outstanding balance from one or more of their existing credit cards. During the introductory 0% offer period, the customer will pay no interest on the amount transferred.

The following featured credit cards have a variety of 0% offers allowing customers to save money on interest payments:-


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0% Credit Card Offers

Balance Transfers:
0% for up to 27 months
Balance Transfer Fee:
3%
Purchases:
0% for 3 months
Representative APR:
21.9% APR (variable)
More Information

Credit Card Details

Sainsbury’s Balance Transfer
  • 0% interest on balance transfers for up to 27 months
  • 3% balance transfer fee (minimum £3) on transfers made at application
  • 0% interest on purchases for your first 3 months
  • Collect 2 Nectar points per £1 spent on Sainsbury's shopping and fuel
  • Collect 1 Nectar point for every £5 spent on your card elsewhere
  • Online account management
  • Annual Fee: None
More Information

Application Criteria

Sainsbury’s Balance Transfer
  • You have a permanent UK address
  • You have not been declined for credit in the last month
  • You do not have a history of bad credit
  • You are aged 18 or over
More Information
Representative Example: 21.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 21.95% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 23 months
Balance Transfer Fee:
1.99%
Purchases:
0% for 3 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

NatWest Longer Balance Transfer
  • 0% on balance transfers for 23 months from account opening
  • 1.99% balance transfer fee
  • 0% on purchases for first 3 months from account opening
  • Lock and unlock your credit card in app
  • Manage your card 24/7 online and by telephone banking
  • Annual Fee: None
More Information

Application Criteria

NatWest Longer Balance Transfer
  • You are a NatWest customer
  • You are a UK resident
  • You are earning at least £10,000 per year
  • You are aged 18 or over
More Information
Only available to customers who have a current account, savings account, credit card or mortgage with NatWest
Representative Example: 19.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 19.9% p.a. (variable)

0% Credit Card Offers

Balance Transfers:
0% for 26 Month
Balance Transfer Fee:
0%
Purchases:
0% for 26 months
Representative APR:
21.7% APR (variable)
More Information

Credit Card Details

Santander All in One Credit Card
  • 0% interest on balance transfers for 26 month from date account opened
  • 0% balance transfer fee
  • 0% interest on purchases for 26 month from date account opened
  • 0.5% cashback on all of your purchases
  • No foreign transaction fee on purchases made abroad in local currency
  • Cashback through Retailer Offers
  • Monthly Fee: £3
More Information

Application Criteria

Santander All in One Credit Card
  • You are a permanent UK resident
  • You have a good credit history with no history of bad credit
  • You have an income of £7,500 per year or more
  • You are at least 18 years of age
More Information
Monthly fee of £3 payable
Representative Example: 21.7% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 15.9% p.a. (variable) with a monthly fee of £3 payable

0% Credit Card Offers

Balance Transfers:
0% for up to 20 months
Balance Transfer Fee:
2.95%
Purchases:
0% for up to 20 months
Representative APR:
19.9% APR (variable)
More Information

Credit Card Details

TSB Platinum Purchase Credit Card
  • 0% interest for up to the first 20 months on balances transferred within first 90 days
  • 2.95% balance transfer fee during first 90 days, 3% fee applies afer 90 days
  • 0% interest on purchases for up to the first 20 months
  • Internet fraud protection and Clicksafe
  • Online card servicing
  • Annual Fee: None
More Information

Application Criteria

TSB Platinum Purchase Credit Card
  • You are an existing TSB customer
  • You are not currently declared bankrupt, have CCJs or subject to IVA
  • You have a good credit rating and regular income
  • You are a UK resident
  • You are aged 18 or over
More Information
Representative Example: 19.9% APR representative (variable). Based on an assumed credit limit of £1,200 and a purchase rate of 19.95% p.a. (variable)

So, in summary a cash advance credit card is when a customers uses a credit card to make a cash withdrawal using the card.

Gaming or betting transactions, and using the card to purchase foreign currency can also be treated as cash advances. When such a transaction is made, fees and interest will be charged as soon as the transaction is made.


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