Good point. Also, at least in my county a bank may look at limit of the credit card rather than the actual borrowings when deciding whether to give someone a ne

Good point. Also, at least in my county a bank may look at limit of the credit card rather than the actual borrowings when deciding whether to give someone a new loan (say a mortgage). So if you have a couple of 10k credit cards, and one has $200 owing you can just pay it off and cancel the card, and potentially could be the difference between getting a home loan or not. Again this is along the lines of increased liquidity.