What is a cash advance credit card? What are the best cash advance credit cards in the UK? What is a cash advance on credit card?
These are some of the most common questions regarding a cash advance credit card that we regularly see here at 0% Credit Card Expert.
Most of the over 90 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 will also treat gambling or betting transactions, or 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, 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 that type of transaction could be.
Using any cash advance credit card to make a cash withdrawal from a cash machine will lead to fees and interest charges, 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 amount is repaid in full.
Cash advance interest rates are often much higher than the typical credit card rate, typically around 18.9% APR variable on most purchases. Almost all UK credit cards also charge a fee when cash advance credit cards are used to make a cash withdrawal from an ATM or cash machine.
Typical cash advance fee and interest rates are as as follows:-
Cash advance Barclaycard: 2.99%fee (min £2.99) and 27.9% APR
Cash advance HSBC: 2.99%fee (min £3) and 24.7% 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. With a 0% money transfer a customer can pay off a loan or overdraft for example and pay no interest for the period of the introductory money transfer offer.
There are a small number of UK credit cards that allow 0% money transfers to be made with no interest to be paid during the introductory offer, although the credit card will charge a fee of up to 4% typically for each money transfer.
The following featured cash advance credit cards do allow UK customers to make a 0% money transfer:-
So, in summary a cash advance credit card can be defined as when a customers uses a credit card to make a cash withdrawal, a gaming or betting transaction, or uses the card to purchase foreign currency and that fees and interest will be charged as soon as the transaction is made.
The best cash advance credit cards are those cards which offer 0% introductory offers on money transfers.