- Discussion board

I am an American citizen (with US bank account) who lives in Asia (with Asian bank accounts). I want to apply for a US VISA card with low % or fixed rate transaction charges for cash advances. The rate on finance charges for cash advances is also important, but not AS important. I have been a subscriber to a Citibank VISA for 12 years with a good credit history (Citibank greatly increased their rates, which is why I am inquiring). What can you suggest?

Most banks will charge a 3% fee for cash advances on a credit card in addition to charging a higher rate of interest. Also, there is normally no grace period on cash advances.

Why? Because cash is a higher risk to the bank. If the credit holder defaults on the account, there is no merchandise to try to recover.

The only option I can think of is utilizing a card that offers you a promo rate on cash advances, but this would be a short term solution.

Also, you could take a cash advance on your current credit card and do a balance transfer onto a lower rate card. This doesn't solve the 3% fee problem, but it will give you a lower APR.

Hope this helps,

The_Insider

Is there some credit card somewhere which does not charge a fee (such as 3 percent) on cash advances, and/or is there a credit card which does not charge a higher rate of interest for cash advances (than the rate for purchases), and/or is there a credit card which has a "grace period" for paying back cash advances? I would sure like to find one. Thanks

I have not come across any. I never really understood why people use the cash advance feature in the first place. Why not just take money out of your bank account through an ATM? And if you don't have a bank account that doesn't bode well for paying the credit card bill when it comes due. I guess the higher risk associated with cash advance repayment is a factor in why the credit card companies charge a higher rate of interest. The only time to use cash advances should be in emergencies.

Hi, guys, The previous question was: "Why not just take money out of your bank account through an ATM?" Well, if I am in London or Berlin, or some such place, my plain ol' bank card won't work in their ATMs. I wish it would work there.

Also, as mentioned in another discussion place here (under "Free cash from ATM while traveling"), don't leave home without overpaying your credit card so that it has a credit balance (say $600), and then even if you are in some place overseas such as Ulan Bator, you can make cash withdrawals without "cash advance fees."

Actually, you are giving your credit-card place a small brief loan, and then you are collecting it back when you make cash withdrawals. OK?

I have a credit card issued by a credit union, and if I overpay my credit card so that I have a credit balance, I can then make a cash withdrawal anywhere in the world, and my credit union does not charge me a "cash advance fee." I suppose this is because after the withdrawal I still have a credit balance. I have been told that some other banks may charge a "cash advance fee" even if you still have a credit balance, so I suppose it depends on the individual bank. If you travel to distant places, you may want to ask your bank whether they charge a fee in these circumstances.