Best Cash Advance Credit Cards

You may be considering taking out a credit card cash advance. Although it's as easy as taking money from your debit card, there are many more factors you need to consider before you withdraw cash using your credit card.

Cash advances are convenient if you've found yourself needing to borrow money.

If you've already got a credit card account, you may be able to withdraw cash from your account. However, not all credit cards allow cash withdrawals.

In this article, you'll learn all about cash advances, the benefits and drawbacks of withdrawing cash from your credit card, and we've found the three best credit cards with low fees.

At a Glance, Benefits and Drawbacks

Before you decide to use your credit card for a cash advance, there are essential factors you should know about.

Benefits

✔️ Much like a debit card, you can withdraw cash as easily as going to an ATM, putting your credit card in, and selecting the amount you'd like to withdraw. 

✔️ If you require quick access to cash, you can withdraw some money from your credit card whenever needed. You don’t have to wait for banks to open or fill in any extra applications.

✔️ Depending on the provider, you can withdraw your entire credit balance. 

Drawbacks

❌️ There are almost always cash advance fees when you take cash from a credit card.

❌️ Depending on the provider, you may be charged other fees, such as using your credit card at an ATM.

❌️ Interest rates, such as APR, are usually higher on cash advance transactions. Interest rates for withdrawing cash can range from 18% to 30%, and most cards are on the higher end nearing 30% APR. 

❌️ You start paying interest on withdrawing cash from the day of the transaction; you'll see the total amount you owe at the end of the month when you receive your credit card bill.

❌️ Cash advances aren't consumer protected, so if you lose the money or it's stolen, you won't be able to retrieve it.

❌️ Not all credit card companies allow you to withdraw money from credit cards. 

Top 3 Cash Advance Credit Card — Reviews

The top three picks are credit cards that allow you to withdraw cash from your credit card, and we've located the ones with the lowest fees and APR.

1. Capital One Platinum Credit Card

Capital One Platinum Credit Card

Max Credit Limit

£1,500

Representative % APR (variable)

28.9% APR

• For people with bad credit or building credit.
• £200 to £1,500 credit limit.
• No annual fee.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 28.94% p.a. (variable) your representative APR will be 28.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

Capital One's Platinum Credit Card is a credit builder that helps you create a positive credit file. This card is our number one choice because it offers the lowest APR rates for cash advances. So, when you take money from the account, you’ll pay the least percentage of interest in comparison to the other cards on our list. 

Your credit balance depends on your credit history.

However, credit limits range from £200 to £1,500. If you can put off withdrawing cash and use your credit card for purchases, you can do so with 0% interest for the first 56 days.

2. Vanquis Chrome Credit Card

Vanquis Bank Chrome Credit Card

Credit Limit

Minimum £500

Representative % APR (variable)

29.5% APR

• Rates of 26.5% APR (variable) or 29.5% APR (variable) depending on individual circumstances.
• Credit limit £500 to £1,500 (subject to status).
• £10 minimum repayment.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 29.5% p.a. (variable) your representative APR will be 29.5% APR (variable). Your APR and credit limit may vary depending on your circumstances.

The Vanquis Chrome credit card offers a balance between £500 and £1,500 and is ideal if you want to build your credit score.  The more you use this credit card and pay back the balance on time, the more likely your credit limit will increase.

Vanuqis provides credit reviews every five months. 

You can control your finances from the Vanquis banking app, which allows you to manage your card and finances from your smartphone.

3. Barclaycard Forward Card

Barclaycard Forward Card

Credit Limit

Minimum £50

Representative % APR (variable)

33.9% APR

• 0% interest on purchases for 3 months (from the date you open your account).
• Credit limit £50 to £1,200.
• Minimum repayment £5.

Check my eligibility See more details

Representative Example – If you spend £1,200 at a purchase interest rate of 33.9% p.a. (variable) your representative APR will be 33.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

The Barclaycard Forward Card gives you a personalised credit limit based on your credit report. This card is ideal for helping you stay within your credit utilisation and minimise the chances of getting into long-term debt.

Credit limits start from £50, and the maximum is subject to application, financial circumstances, and borrowing history.

So, if you’re starting out on building your credit report, this card may be the right one for you. This card comes with a nice perk of up to five months of free Apple subscriptions such as Apple Music, Apple Fitness, and more.

Best Credit Cards for Withdrawing Cash — Buying Guide

What is a Cash Advance Credit Card?

A cash advance isn’t a credit card type but a feature. Most credit cards allow you to withdraw cash from your credit card, and how much money you can withdraw depends on your provider.

Due to the nature of cash advances, banks don't recommend withdrawing cash from your credit card bank account, but sometimes it may be your only option. And if you find yourself in a situation where you need to make a credit card cash advance, you must be prepared.

Some transactions still count as cash advances even if you don't use your credit card to withdraw money.

The following transactions are cash advances:

• Making a mortgage payment with your credit card.
• Buying travel money using your credit card counts as a cash transaction; this includes buying foreign currency and using traveller's cheques.
• Using your credit card to pay a utility bill counts too.
• Betting, gambling, buying lottery tickets, and using your credit card at casinos, count as cash advance transactions.
• Buying gift vouchers with your credit card is considered a cash advance transaction.

What Should You Consider When Taking Out a Cash Advance?

When looking to make a cash withdrawal from your credit card, you should consider the following factors:

• Your credit history: cash advances will leave a mark on your credit file, negatively impacting your chance of getting future credit. You must make repayments on time to avoid harming your credit score.
• Interest rate: you'll pay daily interest on cash advances, so you'll pay back more money than you withdrew. It's a good idea to calculate how much you'll be charged each day and consider the overall cost.
• Extra fees: on top of the cash advance fee, there may be charges for withdrawing small amounts, so it's essential to check the terms and conditions of your contract before withdrawing money.
• Credit and withdrawal limits: most credit cards will have a cash advance limit, so you may be unable to withdraw your entire credit card balance. 

Alternatives to Making Cash Advances on Your Credit Card

You may be thinking twice about credit card cash advances, and truthfully, there are better options available to you with fewer drawbacks (and much lower fees):

• Balance transfers: you can apply for cards that allow you to transfer a credit balance from one card to another. These cards are ideal if you're trying to reduce credit card debt.
• Personal loan: a personal loan is a cheaper option, they're usually straightforward, and you'll know how much you need to repay from the offset.
• Money transfer credit card: this credit card allows you to transfer money from the credit card to your current account. Some credit card providers have a 0% interest-free period you can take advantage of.
• Travel card: designed to help you make safe purchases abroad without worrying about carrying or losing money. If you plan to make a cash withdrawal from your credit card for travelling abroad, consider applying for a travel credit card. 

The Verdict on Using Credit Cards for Cash Advances

Making cash advances on a credit card can be costly and not widely recommended.

However, it may be your only option if you need money quickly. At least now you know and understand what happens when using your credit card to withdraw cash.

Before you do, please check with your credit card provider if cash withdrawals are allowed and determine what fees and interest you'll pay before taking money from the account.

Related Guides:

• Understanding the Different Types of Credit Cards
• What are the Pros & Cons of Getting a Credit Card?
• Best Credit Cards for Fair Credit