I think if it were up to the banks, they'd only allow people who don't need CAs (just getting one for convenience reasons) to get them, and block people who actually need a CA (because they're out of money) from getting one.
I'm reminded of that scene in the movie Traffic, where she's frantically calling up all her credit card companies asking how much cash advance she can get.
It's just too hard for them to tell the difference between someone who's in financial trouble, versus just getting a CA for the convenience, so I think right now (since hardly anyone is traveling, and a lot of people are having financial difficulty) they're just assuming that almost everyone that wants a CA might be in financial trouble. But rather than blocking them entirely, or taking adverse action against those who take them, they're just reducing their exposure. No idea why it seems to only apply to "most" cards, and not all. I'm assuming they're doing a risk assessment on each account to make that decision. I'm not surprised my CA limits got reduced, since I run up my Chase cards quite high every month, often spending more on them than I earn in a month (because of reimburseable work expenses), and I'm sure that looks risky to them.
Total Loan Balance: $43k / $65k
Total SL: $78k
@longtimelurker wrote:
@Remedios wrote:
As far as is it risky...sure, it can be. So can be those other actions we don't talk about, but I'll paraphrase this one guy, I believe his user name is @longtimelurker " Risk and reward"
Perhaps the possibility of getting card shut down is less risky for a person than a late payment would be.
I don't disagree that sometimes CAs are OK/necessary evil/essential-in-the-circumstances. But when someone incorrectly categorizes something as a circular argument, and if my meds aren't immediately to hand, well, it might be a bad day for the neighborhood pets.
Well, you might want to ask for a refill on your meds because that was a circular argument wrapped in fear mongering.
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@Remedios wrote:
@Credit12Fico wrote:
@OmarGB9 wrote:
@Credit12Fico wrote:
@AverageJoesCredit wrote:The only CA i would care about would be my Navy or credit Union cards as they are actually useful . This feature of a credit card is kind of ridiculous in that the issuer wants to flaunt the feature but its taboo to use or gives the image you are desperate. I dont believe that but i know some people do. Why should they care so long as they get paid. They get crazy interest . No point but just another way to control us consumers.
They care because all of their historical data mining shows that cash advances have a higher default risk. The credit card issuers are incredibly quantitative. Even if we personally are not a default risk, as long as the algorithm stops those who are default risk in greater numbers, then we are just a casualty they are willing to accept.
If the risk of defaulting is so high, why offer cash advances at all then?
Is that default risk 100%? No. So then there is money to be made...
You're making a bit of a circular argument here..."They won't do cash advances because of defaults. Not everyone defaults. They want cash advances to make money"
CA is what it is. Not every lender abhors the idea, in fact, a lot of lenders advertise it as a selling point for their cards since there is no fee and no separate higher APR for cash advances.
What you stated was never said by anybody.
As I said before. Cash advance is potentially a higher default risk, not a 100% default risk....thus there is still money to be made 
. APRs, credit limits, cash advance limits and the like are all carefully tuned to ensure profits even though a subset of card users are defaulting. Chase has the internal historical data from past and present. They may have found that trimming Cash Advances would reduce their risk whic is probably elevated due to unemployment levels.
Another datapoint: My October statements just cut for Freedom, Freedom Unlimited, and United Explorer. All three had their cash access lines reduced from 20% of the CL to 5%. That's not a problem for me as I never use this feature.
Yup 5% of the line, dont care can take out the line in BTs or Loans that they offer, if these 2 things go away then the cards are torched. I have watched the banks become more crooked and greedy through out my lifetime, if you think they care about you and your family I have a bridge to sell ya....
