Average Outstanding Balance


DEFINITION of 'Average Outstanding Balance'

The unpaid, interest-bearing balance of a loan or loan portfolio averaged over a period of time, usually one month. The average outstanding balance refers to any term, instalment, revolving or credit card debt on which interest is charged.

BREAKING DOWN 'Average Outstanding Balance'

The average outstanding balance on credit cards and loans is a critical factor in a consumer's credit rating. Average outstanding balances on credit cards are reported to credit agencies monthly on active accounts, along with any amounts that are past due.

  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
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    Debts that are owed as a result of purchasing goods that are ...
  3. Average Balance

    The balance on a loan or depositary account. A simple average ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Average Daily Balance Method

    A credit card accounting method where interest charges are based ...
  6. Transferable Points Programs

    With transferable points programs, customers earn points by using ...
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