What is the credit card cash advance limit in Canada?

Your credit card cash advance limit is typically a subset of your total credit limit — usually 20–50%, depending on the card issuer. For example, a card with a $10,000 credit limit might have a $2,500–$5,000 cash advance limit. Your exact limit appears in your cardholder agreement and is visible in your online banking. Cash advances include ATM withdrawals with your credit card and convenience cheques.

How much does a cash advance cost on a credit card in Canada?

Cash advances are expensive. Most Canadian credit cards charge: a cash advance fee of $3.50–$10 or 1–3% of the amount (whichever is greater); an interest rate of 19.99–22.99% APR starting immediately with no grace period. A $1,000 cash advance held for 30 days costs approximately $19–$23 in interest plus $10–$30 in fees — making it one of the most expensive ways to borrow money.

Does a cash advance hurt your credit score in Canada?

Taking a cash advance itself does not directly appear as a negative event on your credit report. However, it increases your credit utilization ratio (the percentage of your available credit in use), which can lower your score if it pushes your utilization above 30%. Defaulting on repayment would negatively affect your score. Cash advances also do not earn rewards points on most Canadian cards.

What is the interest rate on a cash advance in Canada?

Most major Canadian credit cards charge 19.99%–22.99% APR on cash advances. Low-interest credit cards may charge 12.99%. Cash advance interest accrues immediately from the transaction date — there is no interest-free grace period like regular purchases get. The rate also applies to the fees charged on the advance.

Credit Card Cash Advance Limits in Canada (2026)

What Counts as a Credit Card Cash Advance?

A credit card cash advance is any transaction where you use your credit card to obtain cash rather than making a purchase:

Transaction Type	Cash Advance?
ATM withdrawal using credit card	✅ Yes
Convenience cheques (provided by issuer)	✅ Yes
Balance transfer (in some cases)	✅ Sometimes
Buying gift cards with credit card	❌ Usually no (treated as purchase)
Gambling transactions with credit card	✅ Often coded as cash advance
Cryptocurrency purchases	✅ Often coded as cash advance
Regular store purchases	❌ No

Gambling and cryptocurrency purchases being treated as cash advances surprises many cardholders. Check your cardholder agreement for the complete list.

Cash Advance Limits at Major Canadian Banks

Cash advance limits are a fraction of your total credit limit:

Issuer	Cash Advance Limit (% of credit limit)
RBC	~20–25% of credit limit
TD	~20–25%
Scotiabank	~20–25%
BMO	~20–25%
CIBC	~20–25%
National Bank	~20–25%
Capital One	~30–50%
American Express	Varies by card; charge cards may allow full limit
PC Financial	~20%

Example: A $15,000 total credit limit card at RBC would typically have a $3,000–$3,750 cash advance limit. Your statement or app will show the exact amount.

The True Cost of a Cash Advance

Cash advances carry multiple layers of cost:

1. Cash advance fee

Issuer	Cash Advance Fee
Most major banks	Greater of $3.50–$10.00 or 1–3% of amount
Capital One	$10 or 3% (whichever is greater)
American Express	$5 or 3.5%

For a $500 cash advance: fee is typically $10.00–$15.00.

2. ATM operator surcharge

If you withdraw from another bank’s ATM: additional $2.00–$3.50 from the ATM owner.

3. Immediate interest (no grace period)

Regular purchases have a 21-day interest-free grace period. Cash advances do not. Interest starts accruing from the transaction date.

Cash Advance Amount	Interest Rate	Days Outstanding	Interest Cost
$1,000	21.99% APR	30 days	$18.07
$1,000	21.99% APR	60 days	$36.14
$3,000	21.99% APR	30 days	$54.21

Total cost example

$1,000 cash advance from an RBC credit card, repaid after 30 days:

Cash advance fee (3%): $30
ATM fee (other bank’s ATM): $3.50
30-day interest (21.99%): $18.07
Total cost: $51.57 for $1,000 for 30 days
Effective APR: ~62%

How to Take a Credit Card Cash Advance

At an ATM

Insert your credit card (not debit card)
Enter your credit card PIN (different from your debit PIN — may need to set this up via phone or branch if never done)
Select “Credit” or “Cash Advance”
Enter amount (up to your cash advance limit)

At a bank branch (teller)

You can request a cash advance at any bank branch that processes your card’s network (Visa or Mastercard). Bring ID and your card.

Via convenience cheques

Some issuers mail convenience cheques that draw from your credit card as a cash advance. Treat these like cash advances — same fees and interest apply.

Better Alternatives to a Credit Card Cash Advance

Alternative	Cost	Best For
Personal line of credit	Prime + 2–7%	Regular cash needs
HELOC	Prime + 0.5–1%	Homeowners with equity
Interac e-Transfer from savings	Free	If you have savings
Personal loan	6–15% APR	Larger, planned needs
Payday alternative loan (credit union)	~28–32% APR	Small, emergency amounts
Asking family	0%	Depends on relationship

A credit card cash advance should be a last resort due to its cost. If you regularly need cash beyond your debit card limit, a personal line of credit is vastly cheaper.

If You Can’t Pay Back a Cash Advance

Cash advance interest compounds daily at high rates. If you cannot pay the full advance in one payment:

Pay as much as possible immediately to reduce the interest-accruing balance
Consider transferring the balance to a low-interest or 0% promotional balance transfer offer (check for balance transfer fees)
Do not use the card for further cash advances while carrying a balance
If debt is becoming unmanageable, contact a licensed insolvency trustee for a free consultation