Cash Advance Interest Rate

The cash advance rate is usually 5-10% higher than the purchase APR, leading to a typical cash advance interest rate of 20%+, although in a few cases it is substantially lower. The Smile Credit Card from the Co-operative Bank stands out, offering a stunningly low cash advance APR of just 12.2%. Other good credit cards for cash advance worth considering are the Nationwide credit cards. Both the Nationwide Classic and Nationwide Cash Reward credit cards offer a higher cash advance APR of 13.9% and 15.9% respectively, but when it comes to the order of credit card repayments, Nationwide deduct the (highest) cash advance balance before purchase APR.

You will also have to pay a handling fee for cash advances, typically around 2% (minimum £2), together with a foreign handling fee if you make a cash withdrawal outside the UK. Again, Nationwide are a good credit card for cash advance fees, charging a market leading 1% (minimum £1), although this is increasing to 1.25% from 1 June 2004.

For these reasons, cash advances on credit cards are one of the most expensive ways of borrowing money. It goes without saying that we strongly advise against using cash advances, except in the most dire financial emergencies.