Definition of Available credit:
Available funds are linked to credit card balances or other types of loans. Available credit refers to the amount remaining to be spent. This amount can be calculated by deducting the borrower's purchases (and interest on those purchases) from the full credit limit of the account. The credit limit is the total amount that can be borrowed. Credit thresholds for consumers are usually determined based on your credit report and your annual gross income.
Amount spent on approved credit cards, debit accounts, open accounts or guaranteed accounts.
The available balance is the difference between the total loan limit and the amount borrowed by borrowers on purchases (plus interest on the purchase amount).
How to use Available credit in a sentence?
- Along with credit cards and other revolving loans, the payment is used to increase the lender's available credit (which the borrower can then use to make additional purchases).
- For credit cardholders, the available balance is the amount remaining after deducting all of your purchases (and interest on these fees) from your credit card ceiling.
- Available balance refers to the remaining amount that the borrower has not spent. This amount can be calculated by deducting the borrower's purchases from the total credit limit of the credit account.
Meaning of Available credit & Available credit Definition