Available Credit

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Working Capital

    This ratio indicates whether a company has enough short term ...
  2. Zero-Floor Limit

    A retail authorization system in which all of a merchant's credit ...
  3. Negative Authorization

    A credit card approval system that compares a credit card number ...
  4. Clean-Up Requirement

    A requirement that is often written into the contracts of annually ...
  5. Financial Innovation

    Advances over time in the financial instruments and payment systems ...
  6. Credit Cycle

    A cycle involving the access to credit by borrowers. Credit cycles ...
Related Articles
  1. Budgeting

    How Much Debt Can You Handle?

    Follow these five steps to manage debt without cutting up your credit cards.
  2. Credit & Loans

    The Importance Of Your Credit Rating

    A great starting point for learning what a credit score is, how it is calculated and why it is so important.
  3. Credit & Loans

    Expert Tips For Cutting Credit Card Debt

    Managing your debt could mean the difference between spending $45,000 or saving $184,000.
  4. Options & Futures

    Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.
  5. Investing

    Will credit card inactivity affect my credit score?

    Whether your credit score will be affected by inactivity depends on how you define "inactivity". Your credit report does not include information on frequency of credit card use in any given month. ...
  6. Credit & Loans

    Credit Card Review: The Amazon.com Rewards Visa

    The rewards from
  7. Fundamental Analysis

    What is the affect of the invisible hand on consumers?

    Discover how consumers help initiate and benefit from the invisible hand of the market, which naturally coordinates trade in an exchange economy.
  8. Economics

    How does the invisible hand phenomenon affect investment markets?

    Read about how the invisible hand of the market coordinates investment markets and provides social benefit and why its effects are distorted along the way.
  9. Credit & Loans

    5 Top Credit Karma Tools To Keep Your Credit High

    As if the free, no-strings credit checkup weren't enough, this site also gives you personalized feedback to make you a better money manager.
  10. Credit & Loans

    Credit Card Review: Southwest Rapid Rewards Cards

    Do Southwest Airlines' free checked bags make one of their credit cards a good choice for you?

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center