Believe it or not, there are some phenomenal opportunities for Canadians to get credit card cash advances with promotional rates as low as 0%!
A cash advance is a very convenient way to access funds. Instead of using your credit card to make a purchase, if you need actual cash, you simply withdraw money from your credit card at a bank or an ATM – it’s like a line of credit but with the convenience of a credit card.
Credit card cash advances usually get a bad rap because most come with high interest charges of 22% or more and start charging interest from the moment they get funded – there’s no interest free grace period, like there is with credit card purchases.
However, not all credit card cash advances come with high interest rates. In fact some will offer cash at cheaper interest rates than your home equity line of credit, some don’t charge interest at all! We’ve scoured the market to reveal the cash advance credit cards with the lowest interest rates in the market.
Top Credit Card Cash Advance Promotions in Canada
1. RBC Cash Back MasterCard
This card offers a special promotional cash advance rate of 1.9% for 10 months, and a charge of $3.50 for each withdrawal. There is no annual fee on the credit card. That means you will only be charged 1.9% interest on cash advances during the first 10 months after your account has been approved.
It is the best pure credit card cash advance promotional offer in Canada right now. It also happens to be a pretty good cash back card (although not the best cash back credit card), offering 2% on groceries and up to 1% everywhere else. But we’re here to evaluate it as a cash advance card, and at 1.9% for 10 months, with no annual fee it’s a great deal.
2. American Express Essential Credit Card
The American Express Essential Credit Card offers an 8.99% cash advance rate at ALL times with no annual fee. Aside from the best low fixed rate in Canada, what we love about this card is that there is no promotional rate – the 8.99% is always available for new purchases and cash advances.
With no annual fee you can keep the card in your wallet, and then use the card for an unexpected cash advance need whenever required, whether it’s a year or two down the line. At 8.99%, the American Express Essential’s cash advance is better than most unsecured credit lines!
In fact, the American Express Essential Credit Card is a low rate card that offers 8.99% on all purchases, cash advances and balance transfers even after the promotional period ends.
3. MBNA Platinum Plus MasterCard
This is another great opportunity to access cash, offering 0% for 12 months and no annual fee. However, it’s not a pure cash advance product. With this offer, once you’ve been approved for the card, you can ask for a “deposit transfer” and cash will be deposited into your bank account, from your credit card, at the 0% for 12 month promotional rate, with a one time 1% transfer fee.
While not a pure cash advance, it’s more like a money transfer into your bank account, it has the same effect. At 0% for 12 months, it comes with the best rate, but it can be a little less convenient than a pure cash advance because it can take 2-5 business days to get funded into your bank account.
Credit Card Cash Advance Rates
|Credit Card||Cash Advance Rate||Cash Advance Term||Annual Fee|
|#1||RBC Cash Back MasterCard||1.9%||10 months||$0|
|#2||Amex Essential Card||8.99%||At all times||$0|
|#3||MBNA Platinum Plus||0%||12 months||$0|
Credit Card Cash Advance Summary
Many financial advisers and money bloggers suggest people stay away from credit card cash advances. The fact is, sometimes we can all find ourselves in a short-term money crunch. The cards above provide the best short-term, low rate cash advance options in Canada.
In fact, we’d argue they’re some of the cheapest ways to access cash period. The rates above (0%-1.9%) are certainly better than any unsecured installment loans and are even better than any secured line of credit, let alone unsecured line of credit. The trick is, they’re meant to be short term and used sparingly. Keep that in mind and you just found yourself some cheap money.