Bank Credit

What is a 'Bank Credit'

A bank credit is the amount of credit available to a company or individual from the banking system. It is the aggregate of the amount of funds financial institutions are willing to provide to an individual or organization.

BREAKING DOWN 'Bank Credit'

A company or individual's bank credit depends on both the borrower's capacity to repay and the overall amount of credit available in the banking system. Bank credit for individuals expanded enormously over the past 50 years, as consumers grew accustomed to having several credit cards. Some observers were predicting that the financial crisis in 2008 could mean a return to those earlier years, when credit, although relatively cheap, was difficult to obtain, especially for those with poor credit histories.

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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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    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
  3. What are some good alternatives to taking out a line of credit?

    Read more about how opening a line of credit might not be the best answer for you and determine available alternatives if ... Read Answer >>
  4. What is the difference between available credit and credit limit?

    Explore the difference between available credit and credit limit and the implications different account balances have on ... Read Answer >>
  5. What is the difference between "closed end credit" and a "line of credit?"

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