Best cash advance credit cards in Canada

The Scotiabank Value® Visa* Card offers the best promotional cash advance rate in Canada, at 0% interest charged on cash advances for the first 10 months. Afterwards, cash advances have a still-competitive 13.99 interest rate.¹ Plus no annual fee in the first year.¹ Terms and conditions apply. With both the bonus and the regular rate helping so much to save, it’s logical that there’s an annual fee, though it’s a reasonable $29.

The Scotiabank Value® Visa* Card charges $5 per cash advance fee / 1% on Balance Transfers transferred during the Promotional Period, but savings on interest will likely eclipse these fees for most cardholders. Scotiabank offers 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S. when you pay with your card as well.

Disclosures:

• Conditions Apply. Visit here for the Scotiabank Value® Visa* Card to learn more. *See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.

The 12.99% fixed cash advance interest rate offered by the RBC® Visa‡ Classic Low Rate Option  is very competitive given the card’s relatively low $20 annual fee.  Aside from cash advances the card is unusual in that it combines low interest rates with the potential to earn basic rewards, nabbing up to 50 Be Well points for every $1 spent on eligible purchases at Rexall Pharmacies. Additionally, cardholders save 3¢/L on fuel and earn 20% more points when using their linked RBC credit card at Petro-Canada gas stations.

This offer is only available to residents of Canada other than the province of Quebec (Quebec residents eligible for separate offer).

Disclosures:

*Terms and Conditions apply.

• Refer to RBC page for up to date offer terms and conditions.
  
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For a $29 annual fee, which is waived the first year*, the BMO Preferred Rate Mastercard®* provides cardholders with a low interest rate on purchases of 13.99% (and 15.99% on cash advances). It also has a nice promotion which cardholders who have other balances may appreciate: 0.99% Introductory interest rate on balance transfers for 9 months with a 2% transfer fee, and a $5 fee for each cash advance*. BMO also offers purchase protection against theft and damage for 90 days, and extended warranties up to an additional one year*.

*Terms and conditions apply

When it comes to cash advances, Tangerine Money-Back Credit Card has you covered. Whether you're within Canada or traveling abroad, the fee for cash advances is transparent: $3.5 within Canada and $5.00 outside Canada. Plus, the interest rate on cash advances is 19.95%, ensuring clarity in your financial transactions.

Understanding fees and interest rates is crucial. With the Tangerine Money-Back Credit Card, you enjoy a 19.95% interest rate on purchases. For balance transfers, there's a 3% fee of the amount transferred or a minimum of $5.00, with a promotional interest rate of 1.95% for the first 6 months (then 19.95%% afterward). Foreign currency conversion incurs a 2.5% fee, adding transparency to international transactions.

It's also worth noting that while the Tangerine Money-Back Credit Card offers numerous benefits and rewards, such as cash back on your everyday purchases, it's important to understand the terms and conditions surrounding cash advances. While interest is calculated from the transaction date until the amount is paid in full, there's a grace period for new purchases if the balance is paid by the due date. However, this grace period doesn't extend to cash advances.

Cash advances are when you use your credit card to withdraw cash from an ATM, or from a bank that offers cash advance services through Mastercard, Visa, or other card issuers. Think of it this way; every time you buy a cup of coffee with your credit card, you essentially borrow money to pay for it. A cash advance replaces purchases like coffee with the cash you need instead, meaning that you’re borrowing cash against your credit.

Advantages of a cash advance credit card

• Access to fast cash with your credit card
• Does not require cash in the bank
• Pay monthly minimums on the cash advance like with purchases

Limitations of cash advances

• Interest charged, sometimes immediately after the advance
• Maximum cash advance amount might be lower than the card’s credit limit
• Miss a monthly minimum payment and your rate may increase

As briefly touched upon, low cash advance rate or fee credit card users should be aware that interest charges may apply as soon as they receive the cash until the payment is due. Unlike purchases made with credit cards, where an interest-free grace period is offered if the statement balance is paid in full and by the due date, interest on cash advances starts immediately. Therefore, the costs will increase if the debt is not repaid quickly.

Some transactions may be considered cash advances, even if they’re not intended as such. This can apply to overdraft transfers to a chequing account, for example, which use your credit to cover you when a recurring bill or charge puts you beyond the balance of your chequing account.

Your credit card lists its cash advance fee online, which will be either a flat percentage rate (2.00% of the amount withdrawn for instance) or a flat charge (e.g. $3.00) per cash advance. ATMs may charge an additional ATM fee, as will some banks if you’re not already their client. The interest rate should also be considered, and it’s usually similar to the rate you pay on your purchase balance.

Credit card balance transfer

A credit card balance transfer traditionally facilitates the transfer of high-interest debt onto a credit card with a low promotional interest rate. But some balance transfer cards also permit a kind of ‘balance deposit,’ in which a cash transfer up to the new balance transfer card’s limit can be made to a bank account. The transferred cash is then subject to the card’s low promotional interest rate (which can sometimes be as low as 0%). This lesser-known option ultimately accomplishes something quite similar to a low-interest cash advance.

Line of credit

Opening a line of credit is another cash advance alternative. Lines of credit may be superior for those who prefer cash exclusively (disregarding the other benefits of a credit card). They offer you a set amount of cash that you can always withdraw, and often at a low interest rate, without the per-advance fees and with the benefit of a more forgiving grace period.

Home equity line of credit (HELOC)

A HELOC is a line of credit like any other, but secured by your home. Using home equity as leverage is a solution suitable for those who need a large amount of cash, and not usually for smaller cash needs. HELOCs can be opened at the same time as a mortgage or even within the same agreement, allowing borrowers to expand their line of credit as the mortgage is continually paid down.

Loans

Personal loans can be preferable for people who have a good credit score and healthy payment history, and might yield a lower interest rate than what they’d pay for a cash advance from their card. Personal loans don’t penalize borrowers for how they use their money, and as long as it’s paid back, the entire loan can be withdrawn as cash if necessary.

Your inner circle

Many would be surprised at the generosity of their closest friends and family. Financial needs are very personal, and so only those who are most familiar with you will be comfortable getting you the cash you need, but they might be be happy to help.