Definition of Available credit:
Available credit is related to the account balance of a credit card or other form of debt. Available credit refers to how much a borrower has left to spend; this amount can be calculated by subtracting the borrower's purchases (and the interest on those purchases) from the total credit limit on the account. A credit limit is the total amount that can be borrowed; the total credit limit for a consumer is usually determined based on their credit reports and their gross annual income.
Amount that will exhaust a credit cards, charge accounts, open accounts, or an overdraft accounts approved limit.
Available credit is the difference between the total credit limit and the amount that the borrower has accumulated through their purchases (in addition to the interest on the amount of their purchases).
How to use Available credit in a sentence?
- For credit cards, and other types of revolving credit, payments go towards increasing the borrower's available credit (which the borrower can then use for additional purchases).
- For credit card holders, available credit is the amount that is left when you subtract all your purchases (and the interest on those charges) from the maximum credit limit on your credit card.
- Available credit refers to how much a borrower has left to spend; this amount can be calculated by subtracting the borrower's purchases from the total credit limit on the credit account.
Meaning of Available credit & Available credit Definition