This article talks about the best Credit Card Cash Advance offers in Canada.
We all know what Cash Advance from a Credit Card is, right? If you don’t, it is just like a line of credit, you can withdraw cash from your Credit Cards.
But, the ultimate problem with that is the interest rate. Most of the Canadian Credit Card companies charge higher Interest Rate for Cash Advances.
But, you know what, there are some Credit Cards offer even 0% interest Rates for Cash Advances.
So, today’s article talks about the Best Credit Card Cash Advance offers in Canada.
Before we jump into the list, I just want to point out some important facts about Cash Advances.
Is Cash Advance a Good Habit?
Cash Advances are good, only if you have the proper Credit Cards to do it. You will understand why I’m saying it.
If you pick the wrong Credit Card for Cash Advances, these are the possible things you may experience;
#1 First of all, the Higher Interest Rates may lead your minimum monthly payments to higher numbers.
#2 When you withdraw a higher amount of money from your Credit Card, your utilization ratio will increase.
Remember one thing, if you go beyond 60-75% of your Credit Limit, that may affect your Credit Score.
#3 Another thing is that you should be aware of your Cash Advance limits.
This is a common mistake made by people.
For most of the Credit Card companies, the Cash Advance Limits might be different.
For example, of you have a credit limit of $5000, your Cash Advance limits might be $1500.
So, in that situation, without knowing your limits, you may try to withdraw more than what is assigned to you. This will end up with some worst results, such as reporting to Credit Bureau and also, it will ruin you financially.
#4 Finally, in case, you didn’t have the budget and ended up with a missing payment, that will be reported to the Credit Bureaus – that will result in a decrease in your Credit Score.
Choosing the wrong Credit Card for Cash Advance is a bad idea.
That is why today I’m going to show some of the best Credit Card Cash Advance offers in Canada.
I forgot one thing. I just mentioned some scenarios above, that you may experience if you choose the wrong Credit Card for Cash Advance.
Even if you get a better offer on Cash Advance Interest Rates, you may face some bad results.
What is that going to be?
Depending on how much money you withdraw from you Credit Card, your Credit Utilization Ratio goes up, right?
What if you withdrew more than 75% of your Credit Limit? That may ruin your Credit Score.
So, the moral is that Cash Advance is not really a good habit for those who maintain Excellent Credit Score.
But, people are different, right?
I’m assuming that you won’t anywhere close to that 75% of your Credit limit or miss any of your monthly payments.
So let’s get started.
Summary of the Best Cash Advance Offers on Credit Cards.
- MBNA Platinum Plus MasterCard
- RBC Cash Back MasterCard
#1 MBNA Platinum Plus MasterCard
MBNA Platinum Plus MasterCard is a very popular name among the Best Balance Transfer Credit Cards in Canada.
Those who already know about MBNA Platinum Plus might be wondering how it came into this list.
Yes, you are right.
The interest rate charged by this Credit Card for a cash advance is pretty high. As you can see from the screenshot, it is 24.99%.
Then how the heck I can tell you, MBNA Platinum Plus is the best for your Cash needs?
You know what, with MBNA Platinum Plus, you will get 0% interest rate balance transfer for the first 12 months.
That means you can transfer your balance (debt) of another Credit Card to MBNA Platinum Plus with out paying any interest for the first 12 months.
What if you can get a “deposit transfer”? That is not too far away from you.
This will allow you to deposit money from your MBNA Platinum Plus Credit Card to your Bank account and you will pay absolutely 0% on interest which is a promotional rate for the first 12 months.
The only thing you need to pay is a 1% transfer fee.
Key things about MBNA Platinum Plus MasterCard
- No Annual Fee.
- 0% Balance Transfer for the first 12 months.
- 0% Deposit Transfer for the first 12 months.
- Foreign Currency Conversion rate of 2.5%.
- Unfortunately, No Reward programs available.
- Once the promotional rate ends, no other way to earn rewards or benefits.
#2 RBC Cash Back MasterCard
Even though, RBC Cash Back MasterCard doesn’t offer a 0% interest Cash Advance, still it is the best in that category.
Yes, that is true. RBC Cash Back MasterCard is the Best Canadian Credit Card which offers the best Cash Advance rates.
Because, previously, we talked about MBNA Platinum Plus’s deposit transfer, but not cash advance.
The reason why I gave it the first rank, all you need is money, right? So, I just wanted to show you that cash advance is not the only choice to withdraw some money with your Credit Card.
Only thing is that it may not be possible with all Credit Cards.
Let’s talk about this guy.
RBC Cash Back MasterCard offers Cash Advances for a promotional interest rate of 1.9% for the first 10 months of your Card membership.
Also, you will have to pay a charge of $3.50 for each withdrawal.
Even though, Scotia bank Value Visa Card offers 0% cash advance rate for the first 6 months, it is a limited time offer which is expected to be closed by February 28th.
Because of that reason, I would say, RBC Cash Back MasterCard offers the best cash advance rates in Canada.
Key things about RBC Cash Back Credit Card
- There is No Annual Fee.
- Promotional interest rate of 1.9% on Cash Advances for the first 10 months.
- Offers 2% Cash Back on Groceries and 1% everywhere else.
- Even after the promotional rate ends, it is nice to have Credit Card, as it allows you to earn Cash Back for every purchase.
- It doesn’t offer 0% interest rates as the MBNA Platinum Plus.
Even though MBNA Platinum Plus offers great rates, the eligibility requirements to get an approval is higher than that of RBC Cash Back MasterCard.
If you have a good amount of annual income and a better job, and an Excellent Credit Score, MBNA Platinum Plus is the right Credit Card for you.
Otherwise, go for RBC Cash Back MasterCard.
But, always make sure to not spend over 75% of your Credit Limit.