Women are Less Likely to Take Cash Out than Men

According to an infographic released by Totally Money, women are less likely to withdraw money on their credit card then men – 18% versus 23% of men. The statistics suggest that women are the more sensible sex when it comes to money issues if you consider the high charges that withdrawing money on credit often incurs.

Men are 1.5 times more likely to withdraw cash on credit in order to pay off other credit card bills and 1.6 times more likely to think that withdrawing cash with their credit card is cheaper than with their debit card. In fact, the average cash withdrawal fee is £3.34, which has increased by 53p since 2010. As well as the inflated fee, withdrawing cash comes with large interest rates. On average, the rate is 24.49% which is charged from the day the cash is withdrawn, as opposed to the standard 56 interest-free days that come with most credit card transactions.

Although women are less likely to withdraw cash on credit than men, it is worrying that 6 million credit card users take out cash with their credit card every year – whether they are male or female. Of the 6 million, 1.1 million use the cash they withdraw on credit to pay off utility bills such as gas and electric. The recent hike in energy prices could explain why so many people continue to withdraw cash on credit despite the high charges and interest rates.

The CEO of Totally Money, Will Becker, thinks that there is a lack of awareness among consumers:

“Unfortunately, when providers make fee changes like this, it’s very difficult for people to spot. Charges like these are rarely a consideration when choosing a card.”

If you plan on taking out cash with your credit card then you should at least shop around for the best credit card deal. Look at the terms and conditions carefully to see how much you will be paying in charges and interest. Use a comparison tool like the one on Totally Money to find a credit card that charges the least to take out cash. For example the Halifax Clarity Card currently charges no cash withdrawal fee.

Even once you know all the facts, there might come a time when you have to withdraw cash on credit as it seems like more and more people are running out before pay day. Of the 6 million people that take out cash on credit every year- 40% said they had simply run low on cash.