Compare 2024's Best Low Cash Advance Credit Cards in Canada

Low cash advance credit cards on RATESDOTCA

Getting a cash advance on your credit card may be quite useful especially in times of emergency or when you simply need to obtain funds immediately and find yourself between pay cheques. If these situations come up infrequently, a regular credit card might serve your needs. However, if you are a frequent cash advance user, you might want to consider a credit card that offers lower rates on these advances.

Low cash advance rate credit cards are regular credit cards that charge a relatively lower interest rate for cash advances. As you might expect, the lower interest rates on cash advances are relative, as many credit card users may consider them high regardless. Whether you use your credit card to access cash at an ATM, withdraw cash at a supermarket checkout, or obtain a cash sum from a vendor or other merchant with your credit card, this is considered a cash advance.

Be aware that cash advances are limited to the available credit on your credit card account. Make sure the amount you request falls within the credit limit, including any additional fees such as an ATM transaction charge. You may be assessed additional fees if you go over the limit, assuming the credit card company allows the transaction to go through.

Interest charged on low cash advance credit cards

Low cash advance credit card users should realize that interest charges might apply as soon as you receive the cash up to when payment is actually due. Unlike using credit cards for purchases, where an interest-free grace period is offered if you pay off your statement balance in full and by the due date, interest on cash advances starts immediately, so the costs will increase if the debt is not repaid quickly.

Credit card companies will outline the exact procedure for charging interest, minimum payments, and other fees that may result from using cash advances. It is always in your best interest to understand how the charges are made, how the costs will be presented in your credit card statement and how to best make the payments to avoid late fees and other penalties that may arise.

Some low cash advance cards will offer a promotional interest free period that gives the user a more favourable opportunity to repay the outstanding amount. There may be periods offered where the interest rate is reduced by one or more percent, which is another saving opportunity not to be overlooked. Again, it is vital to understand when the lower or interest free period expires and when the actual agreed upon interest rate will take effect.