available credit

available credit definition - business

available credit

The amount of credit that is available for new purchases. For credit cards, available credit is equal to a cardholder's credit limit less the outstanding balance. A cardholder with a credit limit of $9,000 and an outstanding balance of $3,500 has available credit of $5,500.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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