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Gromit Gromit is offline
 
Joined: Mar 2009
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Gromit
 
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Joined: Mar 2009
Posts: 10,440
Senior Member

Old 01-11-2021, 12:33 PM
  #10

If you paid off your car loans, your credit available ratio probably changed.

If you have $20K available on a CC and have used $10000, and you have 2 car loans of $20K and only $1000 left to pay on each, you have $60k open but are only using $12000.

12,000:60,000 is 1:5

When you paid off the car loans, you now have $20k available and have used $10k.

10,000:20,000 is 1:2

At least that's how I remembered it being explained to me as I was closing credit cards that I never used. I don't know for sure that it works the same as loans, but I wouldn't be surprised.

And I agree that I would pay the $345 if that's the only thing stopping you. I highly doubt rates are going to go significantly lower. How much lower can they realistically go?


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