<prompt> Human: Let me clairify this question by explaining where I am coming from and what I mean.When you get a credit card, you are given access to a credit line. This credit it not cash. It is a representation of an amount to be converted to cash at point of sale. The actual cash transfer occurs behind the scenes, between the banks and companies completely independent of your individual transactions and transaction dates.A credit line is like a loan, but it is still not the same as a cash loan or bank deposit. There is no actual cash, just an electronic IOU. This is why you pay a fee to take out a cash advance on a credit card. It is not actual money, so by requesting genuine, physical cash a transfer is done, and this costs the credit card company money. So my question is, if a credit line is not the same as actual cash, why are credit card companies allowed to take their fees directly from our line of credits available balance, and not either added to a seperate payment balanceaccount or simply added to our minimum payment bill?These companies are taking what they owe to us - available credit, and transferring it into a non-credit cash charge onto our account, on our behalf.The real world result of this is running into situations like this:You have a credit line of 2000. You have charged 1950 to it, so your available balance is 50.You make a payment of 50 to it, which brings your balance to 1900 or 100 available. Now, here is where it gets murky.You start with 0, but the CC company gives you an IOU for 2000. You utilize 1900 of that credit as an IOU on behalf of the CC company to the various places you purchased from. This IOU being made on the behalf of the CC company by yourself means you transfer the responsibility of the IOU to yourself. Again, no cash has been moved by you specificially. It is not until the banks do their batch transfers and payments between each other that cash money will actually move. You are still dealing in IOUs.However, when you make a payment on your account, you have gone from assigning IOUs to directly making a cash payment. This is real money moving out of your bank, and into the CC companies bank.What the companies do is say Hey, you owe us money. We are going to take the amount from our IOU that you owe us in interest, and deprive you from access to that amount. Even though it is an IOU, we will take it as a cash payment directly to our banks once you make a payment.So with the previous example, you have 100 as available credit. Now the bank calculates that you owe 50 in interest. So instead of tacking that money to your total amount due, for example you have 100 available credit and 2050 balance owed to us, or assigning it to its own cash fee balance which is not credit, straight up cash, essentially a bill which would look like 1900 credit balance owed, 100 credit available, and 50 fee amount owed . This would give you access to the original amount credited, independent of your cash payments towards your amount owed.What they instead do is simply take it from what they already promised you as credit. You now only have 50 of accessibile credit, even though you just put 50 down and had 50 remaining. This it bad for the consumer, because it reduces flexibility in how, how much, and when you can utilize your credit. If the CC companies would let you pay your fees seperately, you could still have access to this credit amount. The only reason I can think that this is allowed is that these credit card companies have the technological means to do this, so they just do it. I am arguing that just because they can do things this way, doesnt mean they should. Thoughts? Assistant: My main thought it that you should not be using credit cards. But to answer your question and use your terms...They promised you that you could spend a total of 2,000. Whether you like it or not, you spent that 50 on interest by not paying your bill in full. Human: I never intended to come off as combatitive or argumentative. I am young and dumb but trying to learn. I like all of you want to have as much money as possible, preferably to spend. It just seems to me that the entire credit card system is disengenuously represented to young adults. It is essentially a loan, an installment loan. I would argue that most people use it as an installment loan. But it is not presented this way. Instead of making a mutual agreement to borrow up to 2000 up front, consumers are strung along with cashback incentives and increased credit limits. This gives a strong and hard to resist urge to treat this increased limit as cash to spend. A loan. I realize there are many people out there who are responsible enough to use it as a finance tool and pay it off monthly, but I think these people are in the minority.I think the best solution would be to offer competitive, non predatory loans with interest rates matching current credit card rates instead of the absurd rates of payday loans. For younger people like myself less experienced managing money, this would be invaluable. If I had been given right out the gate a loan for 2000 I would not be treating my credit card balance as a bank account. Who likes being hit with random fees after they already deposited money into their account?  <response>: A revolving line of credit is not an installment loan. Do not confuse the two.You can borrow whenever and pay any amount above minimum any time on a revolving line of credit. You cant do this with a typical loan. A loan has monthly payment and end date. Not so with line of credit. This gives a strong and hard to resist urge to treat this increased limit as cash to spend.Their limit is not your limit. Create a budget and limit yourself. I think the best solution would be to offer competitive, non predatory loans with interest rates matching current credit card rates Personal loans exist. Ask your bank. Who likes being hit with random fees after they already deposited money into their account?These fees are not random. You agreed to them. 