A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Credit UtilizationThe share of your available credit that you are currently using, calculated by dividing your balances by your credit limits.
- Available CreditThe portion of your credit limit you have not used yet, equal to your limit minus your current balance.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Revolving CreditA type of borrowing where you can repeatedly use and repay up to a limit, like a credit card, without a fixed payoff date.
- Over-Limit FeeA charge that may apply when a transaction pushes your credit card balance above its assigned limit.
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Plain-English education — not personalized legal, tax, or investment advice.