Cash Advance Credit Card

What is a cash advance credit card? What are the best cash advance credit cards 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 80 UK credit cards available today 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 credit card companies, also treat gambling or betting transactions as a cash advance. Others, treat the purchase of foreign currency, or travellers cheques, using a credit card, as a cash advance as well.

Cash Advance Credit Card

A cash advance on a credit card is often too 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.

Using any cash advance 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 Interest will be charged from the day you take the money out of the machine until the withdrawn amount is repaid in full.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.

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 credit card directly into their bank account. Many of the UK credit cards that did allow 0% money transfers to be made have now been withdrawn from the market.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 balance from an existing credit card and pay no interest on the amount transferred during the offer period.

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

0% Credit Card Offers

M&S Transfer Plus Credit Card*

Balance Transfers:

0% for 28 months

Balance Transfer Fee:

2.85%

Purchases:

0% for 6 months

Representative APR:

19.9% APR (variable)

Credit Card Details

M&S Transfer Plus Credit Card*

• 0% for 28 months on balance transfers made within 90 days of account opening
• 2.85% balance transfer fee, minimum £5
• 0% on purchases for 6 months from account opening
• Collect M&S points every time you shop anywhere in the world with your card
• Preferential rates when you use your card to order M&S Travel Money
• Manage account online
• Annual Fee: £0

Application Criteria

M&S Transfer Plus Credit Card*

• You are a UK resident
• You have a UK bank or building society account
• You are aged 18 or over
• You have not held a credit card with M&S Bank within previous 12 months

0% Credit Card Offers

Nationwide Member Credit Card - All Rounder*

Balance Transfers:

0% for 15 months

Balance Transfer Fee:

1.5%

Purchases:

0% for 15 months

Representative APR:

19.9% APR (variable)

Credit Card Details

Nationwide Member Credit Card - All Rounder*

• 0% on balance transfers for 15 months if made within 90 days of account opening
• 1.5% balance transfer fee within first 90 days, after that 2.4% fee applies, minimum £5
• 0% on purchases for 15 months from date you open your account
• Unlimited commission-free purchases abroad
• Manage account online
• Annual Fee: £0

Application Criteria

Nationwide Member Credit Card - All Rounder*

• Must be a Member of Nationwide. This means you already have a current account, mortgage or savings account with Nationwide
• You are a UK resident
• You have a minimum income of £5000 per year
• You have a good credit history
• You are aged 18 or over

0% Credit Card Offers

HSBC Balance Transfer Credit Card*

Balance Transfers:

0% for 25 months

Balance Transfer Fee:

1.5%

Purchases:

0% for 3 months

Representative APR:

21.9% APR (variable)

Credit Card Details

HSBC Balance Transfer Credit Card*

• 0% interest for 25 months on balance transfers made within first 60 days of account opening
• 1.5% balance transfer fee (minimum £5)
• 0% interest on purchases for 3 months from account opening
• At end of promotional period, balance transfers and purchases will revert to standard variable rate
• home&Away rewards programme giving you instant discounts from well-known brands
• Online account management
• Annual Fee: £0

Application Criteria

HSBC Balance Transfer Credit Card*

• You have an annual income or pension before tax of £8,500 or more
• You are a UK resident
• You are aged 18 or over
• You do not hold an HSBC Basic bank account

0% Credit Card Offers

M&S Shopping Plus Credit Card*

Balance Transfers:

0% for 20 months

Balance Transfer Fee:

2.9%

Purchases:

0% for 20 months

Representative APR:

19.9% APR (variable)

Credit Card Details

M&S Shopping Plus Credit Card*

• 0% for 20 months on balance transfers made within 90 days of account opening
• 2.9% balance transfer fee, minimum £5
• 0% on purchases for 20 months from account opening
• Collect M&S points every time you shop anywhere in the world with your card
• Preferential rates when you use your card to order M&S Travel Money
• Manage account online
• Annual Fee: £0

Application Criteria

M&S Shopping Plus Credit Card*

• You are a UK resident
• You have a UK bank or building society account
• You are aged 18 or over
• You have not held a credit card with M&S Bank within previous 12 months

0% Credit Card Offers

Nationwide Member Credit Card*

Balance Transfers:

0% for 18 months

Balance Transfer Fee:

1.5%

Purchases:

0% for 3 months

Representative APR:

19.9% APR (variable)

Credit Card Details

Nationwide Member Credit Card*

• 0% on balance transfers for 18 months if made within 90 days of account opening
• 1.5% balance transfer fee within first 90 days, after that 2.4% fee applies, minimum £5
• 0% on purchases for 3 months from date you open your account
• Unlimited commission-free purchases abroad
• Manage account online
• Annual Fee: £0

Application Criteria

Nationwide Member Credit Card*

• Must be a Member of Nationwide. This means you already have a current account, mortgage or savings account with Nationwide
• You are a UK resident
• You have a minimum income of £5000 per year
• You have a good credit history
• You are aged 18 or over

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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