Cash advance credit cards are special features that allow you to borrow money from your credit card account. A cash advance can be a helpful tool if you need money for an emergency but don’t have enough money to cover it.
Taking a cash advance on your credit card is often not the greatest option to get cash quickly. Most lending institutions charge high fees and high interest rates for cash advances. So, you should only take cash advance from your credit card if it’s essential. However, if you ever need to use cash advances, here is a list of the best three cash advance credit cards in Canada.
1. Scotiabank Value Visa Card
The Scotiabank Value® Visa* Card offers the most competitive cash advance rate in Canada. This card charges 0.99% interest on cash advances for the first six months. After the promotional period, the 0.99% interest rate will increase to 12.99%.
Additionally, Scotia offers a promotional interest rate of 0.99% on balance transfers for the first six months (12.99% after that). Plus, no transfer fee to boost savings for new cardholders. That’s not all, you can also add an authorized user without any fee.
And finally, cardholders who rent a vehicle at any participating AVIS location in Canada will receive up to a 25% discount on the rental price.
2. HSBC Rewards Mastercard
We love the HSBC +Rewards™ Mastercard® because it comes with low annual fees and low interest rates on cash advances.
Given the card’s low $25 annual fee, the 11.9% fixed cash advance interest rate is one of the best in Canada. Apart from cash advances, the card is unique because it combines low interest rates with the possibility of earning rewards. Cardholders earn 2 HSBC Rewards points for every $1 spent on dining and entertainment and 1 point for every other purchase. Please note that a cash advance is not an eligible transaction for rewards.
If you sign up for the HSBC Reward Card before April 4, 2022, you’ll receive 30,000 points ($150 in travel value). And if you spend $2,000 in the first 180 days of opening your account, the primary cardholder’s first year annual fee will be waived ($25 value).
3. National Bank Syncro Mastercard
The National Bank Syncro Mastercard is a reward card with a low 12.9% cash advance interest rate.
Although you won’t get points or cash back on your purchases with this card, you will save money on interest payments over the year. It also has a modest annual charge of about $35. Plus, your loan rate isn’t determined by your credit score. So, if you have a fair or good credit score, this card can be a good fit for you.
You’ll also get basic insurance like purchase protection and extended warranty coverage when you sign up for the card.
In Conclusion
Since cash advances should be used only in emergencies, we don’t recommend choosing a credit card based on cash advance rates. Rather, look for a card that will be beneficial to you regularly.
You might want to try cash back cards, travel rewards cards, or a balance transfer card. These are popular options with great perks that you can also use for cash advances.