A cash advance is a service provided by credit card issuers that allows you to withdraw cash against your credit limit. This means you can use your credit card to withdraw cash at an ATM or bank, or request a cash advance from your credit card company.

However, it’s important to note that cash advances often come with high fees and interest rates. The cash advance fee is typically a percentage of the amount you withdraw, and the interest rate on cash advances is often higher than the interest rate on regular purchases. Additionally, there is no grace period for cash advances, meaning interest starts accruing immediately, unlike with regular purchases where you have a grace period of up to 21 days to pay off the balance without incurring interest charges.

Therefore, cash advances should be used as a last resort and only in emergency situations. It’s typically better to use your credit card for regular purchases and pay off the balance in full each month to avoid high interest charges and fees.

List of the Best Cash Advance Credit Cards Canada

Here are some of the cash advance credit cards available in Canada:

1. Scotiabank Value Visa: This card offers a cash advance rate of 22.99% and an annual fee of $29.
2. BMO CashBack Mastercard: This card offers a cash advance rate of 22.99% and has no annual fee.
3. TD Cash Back Visa: This card offers a cash advance rate of 22.99% and has no annual fee.
4. RBC Cash Back Mastercard: This card offers a cash advance rate of 22.99% and has no annual fee.
5. American Express Essential Credit Card: This card offers a cash advance rate of 22.99% and has no annual fee.
6. CIBC Dividend Visa Infinite: This card offers a cash advance rate of 22.99% and an annual fee of $120.
7. Tangerine World Mastercard: This card offers a cash advance rate of 19.95% and has no annual fee.
8. Desjardins Odyssey Gold Visa: This card offers a cash advance rate of 19.9% and an annual fee of $110.
9. Capital One Mastercard: This card offers a cash advance rate of 19.8% and has no annual fee.
10. MBNA True Line Gold Mastercard: This card offers a cash advance rate of 24.99% and no annual fee.
11. National Bank Allure Mastercard: This card offers a cash advance rate of 22.99% and an annual fee of $99.
12. HSBC +Rewards Mastercard: This card offers a cash advance rate of 25.99% and no annual fee.
13. Canadian Tire Cash Advantage Mastercard: This card offers a cash advance rate of 22.99% and no annual fee.
14. President’s Choice Financial World Elite Mastercard: This card offers a cash advance rate of 22.99% and an annual fee of $120.
15. Rogers World Elite Mastercard: This card offers a cash advance rate of 24.99% and no annual fee.
16. American Express Gold Rewards Card: This card offers a cash advance rate of 22.99% and an annual fee of $150.
17. Tangerine Money-Back Credit Card: This card offers a cash advance rate of 19.95% and no annual fee.
18. Home Trust Preferred Visa: This card offers a cash advance rate of 19.99% and no annual fee.
19. Meridian Visa Infinite Cash Back Card: This card offers a cash advance rate of 19.50% and an annual fee of $99.
20. BMO World Elite Mastercard: This card offers a cash advance rate of 22.99% and an annual fee of $150.

Pros of Cash Advance Credit Cards

Cash advance credit cards offer several advantages, including:

1. Access to cash: Cash advance credit cards provide you with access to cash when you need it, which can be useful in emergency situations.
2. Convenience: You can use your cash advance credit card to withdraw cash from an ATM, which is often more convenient than other options, such as obtaining a loan from a bank.
3. Rewards: Some cash advance credit cards offer rewards programs, which can earn you points, miles, or cash back for every purchase you make using the card.
4. No credit check: Cash advance credit cards do not require a credit check, so they can be a good option if you have poor credit or no credit history.
5. Low fees: Some cash advance credit cards offer low fees for cash advances, which can save you money compared to other cash advance options, such as payday loans.

Cons of Cash Advance Credit Cards

While cash advance credit cards offer some advantages, they also come with several disadvantages, including:

1. High interest rates: Cash advance credit cards typically have much higher interest rates than regular credit cards. The interest rate for cash advances can be as high as 25-30% or more, making them a very expensive way to borrow money.
2. Fees: Cash advance credit cards often come with fees that can add up quickly. These fees can include a cash advance fee, ATM fees, and finance charges, which can increase the cost of borrowing money.
3. Impact on credit score: Using a cash advance credit card can have a negative impact on your credit score. This is because the high balance on the card can increase your credit utilization ratio, which is one of the factors that determine your credit score.
4. Temptation to overspend: Cash advance credit cards can be tempting to use for non-emergency purchases or to supplement income, which can lead to overspending and accruing debt.
5. Limited availability: Cash advance credit cards are not always widely available, and not all credit card issuers offer them.

Cash Advance Credit Cards Facts

Here are some facts about cash advance credit cards:

1. A cash advance is a loan: When you use a cash advance credit card to withdraw money, you are essentially taking out a loan from the credit card company. The amount of the loan is added to your credit card balance, and you will be charged interest on the balance until it is paid off.
2. Higher interest rates: The interest rate for cash advances is usually higher than the interest rate for regular credit card purchases. The interest rate can range from 20% to 30% or more, depending on the credit card company and other factors.
3. Cash advance fees: In addition to the interest charged on a cash advance, most credit card companies also charge a cash advance fee. This fee is typically a percentage of the amount of the cash advance, and can be as high as 5%.
4. Lower credit limits: Credit card companies may set lower credit limits for cash advances than for regular purchases. This is because cash advances are riskier for the credit card company, since they are essentially lending you cash.
5. No grace period: Most credit card companies do not offer a grace period for cash advances. This means that interest will begin accruing as soon as you withdraw the cash, with no time for you to pay it back interest-free.
6. Limitations on cash advance amounts: Some credit card companies limit the amount of cash that you can withdraw as a cash advance. The limit may be a percentage of your credit limit or a specific dollar amount.
7. Impact on credit score: Using a cash advance can impact your credit score negatively if you do not pay it back on time. This is because the high balance on your credit card can increase your credit utilization ratio, which is one of the factors that determine your credit score.

Cash Advance Credit Cards FAQs

Here are some frequently asked questions about cash advance credit cards:

1. What is a cash advance credit card?

A cash advance credit card is a type of credit card that allows you to withdraw cash from an ATM or a bank branch. The amount you withdraw is added to your credit card balance and you are charged interest on the balance until it is paid off.

2. How much can I withdraw with a cash advance credit card?

The amount you can withdraw with a cash advance credit card varies by credit card company and may be a percentage of your credit limit or a specific dollar amount. Many credit card companies set a lower limit for cash advances than for regular purchases.

3. How much does a cash advance cost?

In addition to interest charges, most cash advance credit cards charge a cash advance fee, which is typically a percentage of the amount you withdraw. The fee can be as high as 5% of the cash advance amount.

4. What is the interest rate on a cash advance credit card?

The interest rate on a cash advance credit card is typically higher than the interest rate for regular purchases. The interest rate can range from 20% to 30% or more, depending on the credit card company and other factors.

5. Is there a grace period for cash advances?

Most credit card companies do not offer a grace period for cash advances. This means that interest begins accruing as soon as you withdraw the cash, with no time for you to pay it back interest-free.

6. How does a cash advance affect my credit score?

Using a cash advance can impact your credit score negatively if you do not pay it back on time. This is because the high balance on your credit card can increase your credit utilization ratio, which is one of the factors that determine your credit score.

7. Are cash advance credit cards a good idea?

Cash advance credit cards should only be used for emergency situations when no other options are available, as they are typically expensive and can have a negative impact on your credit score. It’s important to carefully consider the costs and risks of using a cash advance credit card before making a cash advance.

8. Can I use a cash advance credit card to pay bills?

Yes, you can use a cash advance credit card to pay bills. However, it’s important to note that this can be an expensive way to pay bills, as you will be charged a cash advance fee and high interest rates.

9. Can I use a cash advance credit card for online purchases?

Yes, you can use a cash advance credit card for online purchases. However, it’s important to note that this can be an expensive way to make purchases online, as you will be charged a cash advance fee and high interest rates.

10. Can I get a cash advance from any ATM?

Most cash advance credit cards can be used to withdraw cash from any ATM. However, some credit card companies may limit the ATMs that you can use or charge additional fees for using certain ATMs.

11. Can I pay off a cash advance early?

Yes, you can pay off a cash advance early. However, you will still be charged interest on the balance until it is paid off.

12. Can I get a cash advance if I have bad credit?

Cash advance credit cards do not require a credit check, so they can be a good option if you have poor credit or no credit history. However, it’s important to note that the high interest rates and fees can make it difficult to pay off the balance and improve your credit score.

13. How do I make a cash advance?

To make a cash advance, you can use your cash advance credit card to withdraw cash from an ATM or a bank branch. You will need to enter your PIN and select the cash advance option. You can also use a convenience check that is provided by the credit card company to make a cash advance.

14. Can I use a cash advance credit card for international travel?

Yes, you can use a cash advance credit card for international travel. However, it’s important to note that you may be charged additional fees for using the card outside of the country, and the exchange rate may be less favorable than other payment methods.

15. How long do I have to pay back a cash advance?

The repayment terms for a cash advance depend on the credit card company and the terms of your specific credit card. However, most credit card companies require you to pay off the cash advance balance within a certain amount of time, usually within a few weeks to a few months.

16. Can I get a cash advance without a PIN?

Most cash advance credit cards require a PIN to withdraw cash from an ATM. However, you may be able to get a cash advance without a PIN by visiting a bank branch and presenting your credit card and ID.

17. Can I transfer a cash advance balance to another credit card?

It is possible to transfer a cash advance balance to another credit card, but it’s important to note that most credit card companies charge balance transfer fees and high interest rates for cash advance balances. It’s best to pay off the balance as soon as possible to avoid accruing additional fees and interest charges.

18. Are there any alternatives to using a cash advance credit card?

Yes, there are several alternatives to using a cash advance credit card, including personal loans, lines of credit, and payday loans. It’s important to compare the costs and fees of each option and choose the one that is most affordable and best suited for your needs.

19. Can I use a cash advance credit card to get cash back at a store?

Some credit card companies allow you to get cash back at a store using your cash advance credit card. However, this can be an expensive option, as you will be charged a cash advance fee and high interest rates.

20. Can I cancel a cash advance after I have made it?

Once you have made a cash advance, you cannot cancel it. The amount of the cash advance is added to your credit card balance, and you will be charged interest on the balance until it is paid off.