Cash advance
Withdrawing cash against your credit card. It has no interest-free period, so interest runs from day one, plus a cash-advance fee.
A cash advance is withdrawing cash against your credit card, usually at an ATM. It breaks the card’s one good rule: there is no interest-free period, so interest runs from the day you withdraw, and the bank charges a cash-advance fee on top, often around 2.5% to 3% of the amount with a minimum. That combination makes it one of the costliest ways to get cash, so it is best kept for a genuine emergency. Check your card’s schedule of charges for the exact fee and rate.
Questions people ask
What is a cash advance on a credit card?
Using your credit card to withdraw cash, usually at an ATM. Unlike a normal purchase, it has no interest-free period, so interest starts from the day you withdraw, and the bank also charges a cash-advance fee.
Why is a credit card cash advance expensive?
Two reasons stack up: a fee, often around 2.5% to 3% of the amount with a minimum, and interest from day one with no interest-free period. That makes it one of the costliest ways to get cash. Check your card's schedule of charges for the exact figures.
Does a cash advance affect my credit score?
The withdrawal itself is not a black mark, but it adds to what you owe and the interest can build fast, which can raise your credit utilisation and make the balance harder to clear. Both of those can weigh on your score.
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