Comparing UK 0% credit cards online since 2002What is a 0% cash advance credit card in the UK? What are the best cash advance credit cards currently available in 2024? These questions, regarding a credit card cash advance, are all some of the questions that we see regularly.
Most of the credit cards with 0% offers, available in the UK today, can be used to take a cash advance. A credit card cash advance is most common, when a customer uses their credit card in a cash machine, to withdraw money.
However, you do also need to be aware that some of the UK card companies, now also treat gambling or betting transactions, as a cash advance. Some other card companies will also treat the purchase of foreign currency, or travellers’ cheques, using credit cards, as a cash advance.
Credit Card Cash Advance
A credit card cash advance is very easy to do. You simply stick your credit card in a cash machine, and then enter your PIN number. However, before you do that, you do need to be very aware of just how expensive this type of card transaction can be.
Using any credit card to make a cash withdrawal from a cash machine will lead to both fees, and interest charges as well. These fees and charges apply as soon as you take the money out of the cash machine.
The fees and charges apply, even if you currently have a UK interest free credit card. 0% introductory offers on purchases, or balance transfers, do not apply to cash withdrawals. There is no 0% cash advance credit card deal available, when you use your card, to withdraw cash from a cash machine.
Unlike with a normal purchase, made using your credit card, there is also no interest free period on any cash withdrawal. Interest will be charged right from the day you take the money out of the machine. These interest charges will continue until the amount you have withdrawn from the cash machine, is repaid in full.
0% Cash Advance Credit Card
Cash advance interest rates are often much higher than the typical standard card interest rate. These cash advance rate are often around 29%, and can be even higher.
This compares to the standard card interest rate on purchases, which is now, typically, around 24.9% APR variable. Almost all UK credit cards will also charge a fee, when cash advance credit cards are used to make a cash withdrawal from a cash machine.
So with the above expensive fees and high interest rates on cash withdrawals, is there a better way? There are cash advance credit cards that allow customers to make what is called 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. However, a large number of the credit cards that allowed 0% money transfers, have now been withdrawn from the UK market.
There are still a very small number of these cards available from a few card companies. However, a 0 cash advance credit card will typically charge a much higher fee for a money transfer. These fees can be between 4% and 5%, for each separate money transfer you make.
Cash Advance Credit Cards
For many customers a 0% balance transfer credit card can offer a better choice. The customer can transfer the outstanding balance from one or more of their existing credit cards. This outstanding balance can include any amount that you have withdrawn form a cash machine.
During the introductory 0% offer period, the customer will then pay no interest on the amount of the balance transferred.
The following featured credit cards have a variety of 0% introductory offers allowing customers to save money on interest payments:-
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- 0% interest for up to 26 months on balance transfers made within first 60 days of account opening
- 3.49% balance transfer fee applies (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
- Worldwide offers and discounts with HSBC home&Away
- Manage your card online
- Annual Fee: None
- You have an annual income or pension before tax of £6,800 or more
- You are a UK resident
- You are aged 18 or over
- You do not hold an HSBC Basic bank account
- 0% for up to 26 months on balance transfers made within 90 days of account opening
- 3.49% balance transfer fee, minimum £5
- 0% on purchases for 3 months from account opening
- Collect M&S points every time you shop anywhere in the world with your card
- One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere
- Manage account online
- Annual Fee: None
- You are a UK resident
- You have an annual income or pension of at least £6,800
- You are aged 18 or over
- You have not held a credit card with M&S Bank within the previous 12 months
- 0% interest for up to 16 months on balance transfers made within first 60 days of account opening
- 3.49% balance transfer fee applies (minimum £5)
- 0% interest on purchases for up to 18 months from account opening
- At end of promotional period, balance transfers and purchases will revert to standard variable rate
- Worldwide offers and discounts with HSBC home&Away
- Manage your card online
- Annual Fee: None
- You have an annual income or pension before tax of £6,800 or more
- You are a UK resident
- You are aged 18 or over
- You do not hold an HSBC Basic bank account
- 0% for up to 12 months on balance transfers made within 90 days of account opening
- 3.49% balance transfer fee, minimum £5
- 0% on purchases for up to 20 months from account opening
- Collect M&S points every time you shop anywhere in the world with your card
- One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere
- Manage account online
- Annual Fee: None
- You are a UK resident
- You have an annual income or pension of at least £6,800
- You are aged 18 or over
- You have not held a credit card with M&S Bank within the previous 12 months
- 0% on balance transfers for up to 12 months
- 2.9% balance transfer fee
- 0% on purchases for up to 12 months
- Credit limit up to £8,000
- Online account management
- Annual Fee: None
- You are a UK resident
- You have a bank or building society account
- You are aged 18 or over
Cash Advance UK
Typical cash advance fee and interest rates are as follows, for some popular UK cards:-
Barclaycard cash advance: 2.99% fee (min £2.99) and 24.9% APR
HSBC credit card cash advance: 2.99% fee (min £3) and 29.9% APR
NatWest cash advance: 3% fee (min £3) and 26.9%
Virgin cash advance: 5% fee and 29.9% APR
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, then fees and interest will be charged as soon as the transaction is made.
Withdrawing cash using your credit card whilst abroad can also incur additional charges. You will incur a cash advance fee and interest rate charges on the amount withdrawn. In addition you may also incur a foreign transaction fee, on the amount withdrawn.
So, in summary a credit card cash advance, in the UK, is when a customers uses a credit card to make a cash withdrawal using their card. A 0 cash advance credit card will allow a customer to transfer money directly into their bank account.
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