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 LimitThe maximum amount a lender lets you borrow on a credit card or line of credit before charges get declined.
- 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.
- Credit ScoreA number that sums up how you've handled borrowing, shaping the rates you're offered.
- FICO ScoreThe most widely used credit score model, ranging from 300 to 850, that lenders check to gauge how risky you are to lend to.
- Credit CardA card that lets you borrow from a lender for purchases up to a limit, requiring repayment and charging interest on unpaid balances.
- Available CreditThe portion of your credit limit you have not used yet, equal to your limit minus your current balance.
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Plain-English education — not personalized legal, tax, or investment advice.