If you've ever found yourself in a financial pinch and thought about withdrawing cash from your credit card, you're not alone. Many Filipinos use credit card cash advances to access quick funds—but often without understanding the full cost. While this feature can be helpful during emergencies, it's also one of the most expensive ways to borrow money.
Before you use your card at an ATM, here's a comprehensive guide on how credit card cash advances work in the Philippines, when it makes sense to use them, and the fees you should watch out for.
A credit card cash advance lets you withdraw money from your card's available credit limit via an ATM, over-the-counter transaction, or your provider’s mobile app. You're essentially converting your credit into cash—but unlike regular card purchases, this comes with additional costs and no rewards.
Here’s how a cash advance differs from typical credit card use:
Let’s compare some of the biggest banks in the country and their respective cash advance fees:
|
Bank |
Cash Advance Fee |
Monthly Interest Rate |
ATM Limit |
|
BDO |
PHP 500 or 3% of amount (whichever is higher) |
3.5% |
Up to 30% of credit limit |
|
BPI |
PHP 500 or 3% (whichever is higher) |
3.5% |
Up to 30% of credit limit |
|
Metrobank |
PHP 500 or 3% (whichever is higher) |
3.5% |
Up to 30% of credit limit |
|
RCBC |
PHP 200 or 3% (whichever is higher) |
3.5% |
Up to 50% of credit limit |
|
Security Bank |
PHP 500 or 3% |
3.5% |
Up to 30% of credit limit |
Note: Fees apply per transaction, and interest charges begin the moment you withdraw—no billing cycle grace period.
Understanding the cost of a cash advance can help you make a smarter decision. Here’s a simple formula:
Total Cost = Amount Withdrawn + Cash Advance Fee + Interest Accrued
Example:
Total Cost: PHP 10,000 + PHP 500 + PHP 175 = PHP 10,675
That’s nearly PHP 700 extra for a two-week loan.
Cash advances are not inherently bad—they simply need to be used wisely. Some valid scenarios include:
If you need immediate access to funds for hospital bills or urgent care, a cash advance can be a temporary solution.
If you're overseas and lose your debit card or run out of cash, your credit card can serve as a last resort.
If disconnection is imminent and payday is days away, a small advance may help you avoid service disruption.
Important: Use a cash advance only if you're sure you can repay it within a few days. Interest builds up quickly.
Using your credit card for cash is a short-term fix—not a long-term financial strategy. Avoid cash advances for:
These uses lead to unnecessary interest and deeper financial strain.
Aside from fees and interest, there are lesser-known costs tied to cash advances:
If you often find yourself needing quick cash, consider these more affordable options:
Available from banks and fintech providers with lower interest (1.2%–2% monthly) and longer payment terms. Compare personal loans on Moneymax
Use GCash, Maya Credit, or Tonik for small, fast loans without a credit card.
Buy now, pay later—without interest—when shopping with partner merchants.
Move your existing credit card debt to another card offering a lower interest rate. Learn how balance transfer works
Explore the best credit cards in the Philippines
A credit card cash advance in the Philippines can help in urgent situations—but it’s also one of the costliest borrowing methods. Always read the fine print, calculate the cost, and repay as quickly as possible to avoid compounding debt.
If you find yourself using this feature often, it may be time to reassess your financial tools. Consider more sustainable alternatives like personal loans, digital credit, or 0% installment plans.
Looking for a better credit card or financial option? Compare and apply online through Moneymax today.