Available Credit:
Noun
1. The amount of credit that a borrower has access to on a credit card or line of credit, which can be used for purchases or cash advances. It represents the difference between the total credit limit and the current outstanding balance.
2. The maximum amount of funds that a borrower can borrow from a financial institution or lender, based on their creditworthiness and financial situation. This credit can be utilized for various purposes, such as making purchases, paying bills, or covering unexpected expenses.
3. The unused portion of a credit facility that is available for borrowing or spending. It is typically determined by subtracting the outstanding debt or balance from the total credit limit or approved amount.
Example: Sarah has a credit card with a total credit limit of $5,000. After making a purchase of $1,000, her available credit is reduced to $4,000.
Available credit refers to the amount of credit that a borrower has access to on a credit account. It represents the difference between the credit limit and the current balance on the account. Available credit is important for borrowers as it determines their ability to make additional purchases or borrow more funds. Lenders may use available credit as a factor in assessing a borrower’s creditworthiness and determining whether to extend additional credit. It is crucial for borrowers to manage their available credit responsibly to maintain a good credit score and financial health.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/available-credit/
- Modern Language Association (MLA):Available Credit. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/available-credit/.
- Chicago Manual of Style (CMS):Available Credit. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/available-credit/ (accessed: May 09 2024).
- American Psychological Association (APA):Available Credit. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/available-credit/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts