Cash advances

A handy way to quickly access funds. Find out what a cash advance is, what they cost, when they should be used, and how to avoid being charged cash advance interest.

What is a cash advance?

A cash advance is when you use your credit card to access money rather than making a purchase on your card. These days most cash advances are made as transfers from credit cards to bank accounts using online banking.

There are a couple of other ways to access money using your credit card that can also be considered cash advances, including the purchase of:

  • Foreign currency, travellers cheques and international money wires
  • Gambling chips and tokens

What does a cash advance cost?

Cash advances have their own interest charges which are higher than those for regular purchases made with a credit card.

The other big difference between credit card transactions and cash advances is that when you complete a cash advance you'll start being charged interest straight away and until it is paid off in full.

Here's an example of a credit card purchase:

Sam is shopping at a department store and spends $100 on clothes.

When their next statement comes it'll show that charge.

If Sam's credit card balance isn't paid in full, they'll start being charged interest. This ranges from 13.50% to 20.95% p.a. depending on which ASB Visa credit card they have.

And here's a cash advance:

Sam transfers $100 from their credit card to their spending account.

They'll start being charged interest that day, at a rate of 22.95% p.a.

When Sam's statement arrives, it will show the cash advance amount and the interest charged. Interest will continue to be charged until it's paid off.

How credit card repayments work

Credit card repayments can work differently than people expect.

The interest on your credit card gets paid first, followed by any bank charges or fees. After that cash advances (oldest to latest) and purchases (oldest to latest) are paid.

Full details can be found under 'Allocation of payments' in our credit card conditions of use.

When to use a cash advance

A cash advance can be a good option to have as a back up if you need access to cash quickly but not on an ongoing basis. Think of it as an 'in case of emergency' option. It could also be an option if you plan on repaying your full credit card balance the same day.

What could you use instead?

If you don't want to make cash advances, you can use card control in the ASB Mobile Banking app to turn off cash advances for ATMs. This means you won't be able to withdraw cash from an ATM using your credit card.

Some people like to use cash advances to access cash when overseas. In these cases an option could be to put your credit card into credit (that is, have money stored on it) or use an ASB Visa Debit card.

If there's a big expense coming up, or you find yourself in a bit of a tough spot financially, there are other ways to access cash. More cost-effective ways include:

And in the case of financial hardship, options also include an early release of term deposits and a KiwiSaver hardship withdrawal. You can also use Support Finder to see what other help you may qualify for.


Are cash advances good?

Cash advances can be helpful for customers in some situations. They can be more costly than other forms of credit and it's important to consider all your options when taking on debt.

How do cash advances affect my credit rating?

Cash advances do not directly impact a credit rating. What would impact it is not paying off the minimum amount owing on a credit card each statement.

Is there a limit to how much cash I can advance?

Yes, there are daily limits. These can vary but currently the amounts are $1,000 per day for ASB Visa Light and ASB Visa Rewards cardholders and $2,000 per day for ASB Visa Platinum Rewards cardholders.

ASB's lending criteria and terms apply. Interest rate on cash advances currently 22.95% p.a applies. Interest rates may change. Fees apply, refer to asb.co.nz for details.

Fees may change. Refer to asb.co.nz for other fees and charges.