In the United States, Bank of America credit cards have both a "total credit line" and a "cash credit line". Why is the "cash credit line" lower than the "total credit line"? (I don't know if that's the case for other/all banks in the United States)
My understanding is that:
- total credit line = (mirror) The total amount of credit available on your credit card account. cash advance
- cash credit line = (mirror) The cash credit line available is a portion of the total credit available on your credit card, and is the maximum available credit for bank cash advance (mirror) transactions. Generally, bank cash advances consist of ATM cash advances, over the counter (OTC) cash advances, same-day online cash advances, overdraft protection cash advances, cash equivalents, and applicable transaction fees.
It's not obvious to me why the "cash credit line" lower than the "total credit line". Maybe cash advances carry more risk for the bank than other types of credit?
