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Because if you default, or go bankrupt, they lose out the interest payments and the debt owed back. Its all about risk management.
by jakebellacera 8y ago
Because if you default, or go bankrupt, they lose out the interest payments and the debt owed back. Its all about risk management.
- irq11 8y agoAlso, interest rates are much higher for cash advances, belying their higher risk profile. Honestly, the responses in this thread from bitcoin people...it’s like they’re just now realizing that banks have intelligent employees working for them.
- jdmichal 8y agoDing ding ding! Here's a random credit card from American Express. Cash advances have a drastically higher interest rate, PLUS a 3% (minimum $5) transaction fee. https://www.americanexpress.com/us/credit-cards/card-application/apply/prospect/terms/blue-cash-everyday-credit-card/25330-10-0#FeeTable https://www.americanexpress.com/us/credit-cards/card-applica... Same pattern for Chase Sapphire Preferred. Higher APR and this time a 5% (minimum $10) transaction fee. https://applynow.chase.com/FlexAppWeb/pricing.do?card=FS6K&page_type=appterms https://applynow.chase.com/FlexAppWeb/pricing.do?card=FS6K&p...