Available Credit

DEFINITION of 'Available Credit'

The unused portion of an open line of credit, such as a credit card or a revolving loan (such as a home-equity line of credit). Available credit is the difference between the amount of the credit line or limit, and the amount that has already been borrowed.

Available credit is considered readily available for withdrawal or for direct purchases.

BREAKING DOWN 'Available Credit'

Available credit can be a key factor in a credit score, along with amounts outstanding from various lenders. A reasonable amount of available credit proves that the customer has successfully obtained credit lines in the past, and has the discipline not to use all credit available to him or her.

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RELATED FAQS
  1. Is it possible to have a credit limit that's too high?

    Avoid these pitfalls when working with high credit limits, and learn how to increase your credit score by increasing your ... Read Answer >>
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    Understand how to differentiate between a line of credit and a revolving credit account, and find out why business owners ... Read Answer >>
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    Read more about how opening a line of credit might not be the best answer for you and determine available alternatives if ... Read Answer >>
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    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
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