Some credit card issuers are now making special offers of super low or zero percent interest rates for cash advances. Getting cash from your credit card has always been a bad deal as you get hit with a triple whammy. The new offers may seem irresistible but watch out for fees and other terms. Cash advances typically come with a higher interest rate then purchases, one-time fees based on a percentage of the amount advanced, and no grace period. New offers may have incredibly low rates but may include a fee that can be as high as 5% of the amount advanced. Furthermore, many credit card issuers now apply your monthly payments to the lower interest balances first. This means you could be paying off the low rate cash advance while your purchases continue to accrue interest at a higher rate. Currently the average cash advance interest rate on bank credit cards is 19.32% compared to an average purchase interest rate of 15.43%. Cash advance fees now average 3.6% of the amount advanced.
Most Common Cash Advance Interest Rates Charged by the Top Issuers
1. Citibank - 19.99%
2. MBNA - 12.99%
3. BankOne/FUSA - 19.99%
4. Chase Manhattan - 19.99%
5. Capital One - 19.80%
6. Providian - 23.99%
7. Bank of America - 19.99%
8. Household - 20.74%
9. Fleet - 19.80%
10. Direct Merchants - 19.74%
Most Common Cash Advance Fees Charged by the Top Issuers
1. Citibank - 3% ($5 Min)
2. MBNA - 3% ($5 Min)
3. BankOne/FUSA - 3% ($10 Min)
4. Chase Manhattan - 3% ($5 Min)
5. Capital One - 3% ($5 Min)
6. Providian - 3% ($10 Min)
7. Bank of America - 5% ($10 Min)
8. Household - 5% ($10 Min)
9. Fleet - 4% ($5 Min)
10. Direct Merchants - 4% ($15 Min)
Source: CardWeb.com, Inc.
Some credit card issuers are now making special offers of super low or zero percent interest rates for cash advances. Getting cash from your credit card has always been a bad deal as you get hit with a triple whammy. The new offers may seem irresistible but watch out for fees and other terms. Cash advances typically come with a higher interest rate then purchases, one-time fees based on a percentage of the amount advanced, and no grace period. New offers may have incredibly low rates but may include a fee that can be as high as 5% of the amount advanced. Furthermore, many credit card issuers now apply your monthly payments to the lower interest balances first. This means you could be paying off the low rate cash advance while your purchases continue to accrue interest at a higher rate. Currently the average cash advance interest rate on bank credit cards is 19.32% compared to an average purchase interest rate of 15.43%. Cash advance fees now average 3.6% of the amount advanced.