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Smart Money

The difference between a card limit, a cash advance limit, and a daily limit on credit cards

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Most credit cards have three different types of limits: a credit limit (sometimes called a card limit), a cash advance limit, and a daily limit.

What is a credit limit?

A credit limit is the highest amount the credit card’s balance is allowed to reach. If the balance exceeds the credit limit and you try to use your card for a purchase, it’ll likely be declined. If the transaction is accepted, there will almost always be penalties charged. With some banks, you can ask for the overdraft facility to be removed, so the transaction will be refused before you go over your credit limit.

What is a cash advance limit?

When you withdraw money from your credit card, use it to transfer money to your regular bank account, you’re doing a cash advance. The cash advance limit is the maximum amount of cash that you can withdraw or transfer. The cash advance limit is usually calculated as a percentage of the credit limit. There’s no interest-free period for cash advances, so you’ll be charged interest starting immediately and hit with a fee on top. Your bank might also see purchases of foreign currency and risky transactions like gambling as a cash advance, too.
Find cards with the best cash advance rates here.

What is a daily limit?

Just like your regular bank account, you’ll only be able to spend a certain amount each day on your card, whether in one transaction or multiple. The daily limit isn’t necessarily the same as your credit limit and can be a lot lower, but have been put in place to minimise fraudulent activity on your card. With newer anti-fraud tech in place, daily limits are not a must for each provider anymore.

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Pauline

Pauline Hatch

Pauline is a personal finance expert at CreditCard.com.au, with 8 years in money, budgeting and property reporting under her belt. Pauline is passionate about seeing Aussies win by making their money – and their credit cards – work smarter, harder and bigger.

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Ask Pauline a Question

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26 comments (showing the latest 10 Q&As)

Jean rose

Jean rose

19 June 2022
My gm card advanced limit as been reached and I have over $6,000 on my card limit What can I do if I wanted to withdraw more cash? Also can I still make other purchases with the card?
    Pauline - CreditCard.com.au

    Pauline

    20 June 2022
    Hi Jean rose, if your card is on or over your limit, you won’t be able to make any purchases on your card until you bring your outstanding balance below your credit limit. Find out more about what are credit limits and why they are important.
Chris tidswell

Chris tidswell

14 June 2022
I put more money in my credit card then my allowed limit. Can I withdraw that money to limit of my Visa. ie. limit is 3000 and after deposit it is 4500+-. Can I return the 1500 to my saving acc. without incurring fine. Cheers Chris
    Pauline - CreditCard.com.au

    Pauline

    15 June 2022
    Hi Chris, this unique situation varies from bank to bank. It’s worth contacting your provider to find out more information.
Ana

Ana

7 March 2022
Hello. How do you pay your cash advance? Is it one time payment or monthly?
    Pauline - CreditCard.com.au

    Pauline

    8 March 2022
    Hi Ana, you’ve come through to CreditCard.com.au - Australia’s leading credit card comparison site. We don’t offer cash advances or any form of credit. If you need to access your pay on demand, you can learn about it with our guide.
Pam beathalter

Pam beathalter

11 January 2022
Can I do cash advance more then once
    Pauline - CreditCard.com.au

    Pauline

    12 January 2022
    Hi Pam, as long as you have credit available in your account, you may do a cash advance. Keep in mind that each transaction has it’s on separate fee and starts to accrue interest the moment it leaves the ATM.
Maria

Maria

18 November 2021
Hello Ms. Pauline, I have a question. First of all , this is my story . Right now I have over the limit on my credit card for cash advance . I asked the bank personnel if I can still use it for purchase . Then she said yes. I forgot to ask her , if the credit card can use to pay hotel bill. My question is am I allowed to use it to pay hotel payments?
    Pauline - CreditCard.com.au

    Pauline

    19 November 2021
    Hi Maria, thanks for your question. Generally speaking you can use a credit card in a hotel. However, if you’ve hit your credit limit then the bank won’t approve any new purchases until your account has been paid. Have a read up on why credit limits are important, If you’re having trouble paying your bill, call your bank and discuss your options. Hope this has helped.
Gregory

Gregory

25 July 2021
If I’m at my credit limit can I still get a cash advance
raymond campbell

raymond campbell

27 June 2021
why can i not get cash advance out my card i not over my credit limit
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    29 June 2021
    Hi Raymond, thanks for your question.Without knowing what institution your card is with, I suggest reaching out to your bank directly to check on your credit cards cash advance status.
Anne

Anne

8 June 2021
Hi - After years of owing on credit cards - I have managed to get all but one paid off. The limit is 4800 - and the cash advance limit used to be 960. I have used this card sparingly over the last 2 years; and currently owe 1300 +/- but just noticed that my cash advance limit has been reduced to 260. I finally have good to excellent credit - why would they reduce my cash advance limit? TXS
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    8 June 2021
    Hi Anne, thanks for your question. This is a very specific question. We suggest jumping on a call or a live chat with the bank to discuss this matter. Good luck getting it sorted - let us know how you go!
Marjorie

Marjorie

26 May 2021
Hi, I have a credit limit of 3000 cad dollars on my rbc Master card, does that mean I can cash out the full amount if I really in need?
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    26 May 2021
    Hi Marjorie, thanks for your question! With most credit cards you can withdraw your “available credit”. It’s very important to keep in mind that any cash advances accrue interest straight away and are charged interest at the cash advance rate, which is generally higher than the purchase rate. I would suggest reaching out to the credit card provider to check on the cash advance limit set to your card.
catherine singleton

catherine singleton

1 April 2021
What is the daily cash max that can be taken out?
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    1 April 2021
    Hi Catherine, this depends on the card you're using. Some cards cap your daily cash withdrawals and some don't.
Stephen

Stephen

22 December 2020
How much cash can you get out of your card per day
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    22 December 2020
    Hi Stephen, if you go in branch, you should be able to pull out up to your cash advance limit (inc fees). This limit is usually expressed as a proportion of the credit limit and so will change over time. Some people may put cash advance limits on their cards to stop them trying to pull out 2 much cash.
Robert

Robert

20 December 2020
So I have a 600 cash advance limit so does that’s mean I can get 600 a day or over time
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    21 December 2020
    Hi Robert, typically you should be able to cash advance up to your approved credit limit. If it has a daily limit for some reason. Then yes, you could pull out to this limit a day until your credit limit is reached.
Latisha

Latisha

6 December 2020
How do you know hown much cash advance can get from your card
    Roland B Bleyer - CreditCard.com.au Founder

    Roland

    7 December 2020
    Hi Latisha, you can cash advance up to your credit limit inc the fees for the cash advance.

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