Cash Loans On Your Credit Card

Using your credit card in an ATM can be very dangerous for your financial health. Generally, interest rates on cash advances are huge. Here are a few tips and tricks to save you money when you stick your card in the money machine.

How To Use Your Credit Card In A Cash Emergency

Sometimes, something happens, and you just need money in a hurry. We’re all familiar with the feeling of being so short of cash you’d sell your pet for money (or at least your neighbour’s pet).

During these times of crisis it can be very tempting to withdraw the cash on your credit card. Take it from us, a cash advance on your credit card is an expensive way to ease the pain. Most credit cards charge a 5% upfront fee and then add on the 17.5% annual interest charge. That means borrowing RM1,000 for twelve months can cost you up over RM200 (RM50 fee + RM170 interest charges).

Luckily for us, many banks offer special deals for taking out cash loans on your credit card. The RinggitPlus team have searched the market for the best offers and summarised them in this table:

BankMinimum Amount (RM)Interest ChargeMax % of Credit LimitApply Now
6 Months
Hong Leong Call For Cash5002.99%Up To 90%Apply Now
Maybankard EzyCash2,0003.88%Up To 90%Apply Now
12 Months
Hong Leong Call For Cash5004.99%Up To 90%Apply Now
RHB CashXcess1,0005.00%Up To 80%Apply Now
Alliance Bank Fast Cash1,0005.99%Up To 80%Apply Now
BSN EasyCash1,0008.50%Up To 80%Apply Now

Looking at these deals, if you were to borrow RM1,000 for one year on your RHB credit card with their RHB CashXcess offer it would only cost you RM50, saving you around RM150!

The only fine print you really need to watch out for is the early termination fee. This kicks in if you choose to pay off the cash loan early. Some banks can charge RM100-RM150 or 5% of the original loan amount (whichever is greater) if you want to clear your loan quickly.

If you’re looking for a great long-term deal you should check out AmBank’s QuickCash credit card offer. As long as you borrow over RM5,000 you are guaranteed a pretty good free gift such as a MacBook Air or Samsung Galaxy SIII. The 8.99% annual interest rate might seem high compared to the deals we’ve listed here but after you take into account the value of the free gift, the real interest rate is closer to 4%, which makes this a GREAT offer. The only issue is that you have to borrow the money for 3 years. Oh, and you also need to pay for delivery of the gifts.

If you don’t see your bank listed in our comparison table then you should still call them to check if they have any special offers on credit card cash loans. We have only listed the top offers here.

As usual, you should always make sure that you are able to pay back the cash loan within the original tenure. If not, the high interest rates will kick-in and you’ll lose any savings you might have had.

So next time you need money in a hurry, don’t sell your pet. Just check if you bank has an offer for an easy cash loan on your credit card.


Agree or disagree with this post? Questions? Be the first to post!