What is available credit?

[libby]

Have you checked your credit card or loan account and wondered what “available credit” really means? Many people ask how available credit is calculated, how it affects spending limits, and why it’s important for managing finances and maintaining a healthy credit score.

 

[Adam]

Available credit refers to how much money you can still borrow on a credit card or credit line. It's basically your total credit limit minus the amount you have already used and any pending charges.

 

[MitchelThe]

It’s basically your total limit minus your current balance and any pending charges. If you have a $5k limit and owe $1k, your available credit is $4k.

 

[Emly]

Available credit is the amount you can still spend on a credit card or credit line. It’s your total credit limit minus your current balance and any pending charges.

 

[James Miller]

The difference between available credit and current balance is available credit. It is the balance between money you are left to spend on a credit card or a line of credit. To sustain good credit score, it is important to keep your available credit high and your balance low as this is an indication of good ratio between credit use and lenders.