Definition of Available Balance

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Definitions of Debt Consolidation Loan and Related Financial Terminology:


Other Finance Related Services - The following listings for companies and services on the Debt Consolidation Loan Directory are provided to assist you with the management or consolidation of your debt. Also, while on this site, feel free to shop for other financial services such as auto insurance and home equity loans.

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Available Balance definition

Define Available Balance (credit card and bank account): The available balance on a credit card is the difference between the maximum credit amount and the current balance owed. For example, on a credit card with a maximum credit amount ("credit limit") of $5,000 and a current balance of $2,250, the available balance would be the difference, or $2,750; in other words, an addition $2,750 could be charged to the card before over-limit fees would accrue.


Care should be exercised when approaching a credit card's maximum credit amount, because periodic finance charges or other fees might unexpectedly cause the account to exceed the credit limit.


The available balance for a bank account is simply the amount of money remaining in the account which can be freely utilized by the account holder. For credit unions, this is usually less than the full account balance as credit unions require a nominal minimum account balance-usually about $25. For example, a credit union savings account with an account balance of $2,050 would have an available balance of $2,025.



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