• Jo Miran@lemmy.ml
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      4 months ago

      You can only decrease what you owe on a loan but a credit card is an open line of credit that you can max out at any time. Because of this, the entire credit line counts against you when evaluating your debt. If you have any questions, ask your local bank manager or financial advisor.

      EDIT: By the way, most people also believe that only the outstanding balance is counted.