Be careful with cash advance credit cards
6 May 2008
Credit cards can offer excellent interest rates on credit for purchases but they will often charge an exorbitant amount for cash. If you find that you use credit cards for cash advances quite regularly, then you must be sure to choose a card offering an excellent deal in that area. It's not always simple, either, as when the other features are particularly attractive it can be distracting.
The St. George Vertigo MasterCard is excellent in many areas for budget credit cards, but it is not meant for cash advance withdrawals. The purchase rate is exceptionally low at 10.99% p.a. but at 20.49% p.a. the cash advance rate is brutal. This credit card is definitely recommended for many other uses, but for cash advances it is inadvisable.
It almost goes without saying, but rewards program or gold and platinum credit cards are usually unlikely to provide an advantageous cash advance rate. Additionally, they are more rewarding if you do not use your credit cards as a source of credit, so it would be best to avoid premium credit cards if you use cash advances. Remember that reward programs credit cards are generally only a bargain if you can earn reward points without accruing interest on your purchases, but cash advances will begin gaining interest immediately.
The St. George Starts Low Stays Low Credit Card offers an excellent deal for users of cash advances, with an all-round interest rate of 12.99% p.a. This is lower than the purchase rates of many other credit cards, and only costs $59 in annual fees. You are unlikely to find a better interest rate on cash advances.
The Aussie MasterCard is reasonable competition on cash advance rate at 15.99% p.a. and beats the St. George Starts Low Stays Low Credit Card on purchase rate at 11.99% p.a. The annual fee is also lower at $49, so you may want to analyse your income to see with would provide a better deal for your situation.
Please visit our comparison pages for more information and to apply for some top cash advance credit cards.
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