What is the difference between outstanding balance and available credit?

The outstanding balance helps determine how much credit you have available at a given time. To come up with your available credit, subtract the outstanding balance from your credit limit and add any outstanding charges that haven’t shown up yet in your account.

What is the meaning of outstanding balance?

Outstanding balance refers to the amount still owed on a loan from the perspective of a borrower or lender. Remaining balance instead refers to how much money remains in an account after spending or a withdrawal, from the perspective of a saver or savings bank.

Can I spend my available balance?

Your available balance is the amount you can spend right now. You can think of it as “funds available to withdraw.” You can use the money in several ways. You can take that amount out of your account in cash, either at an ATM or with a bank teller.

What does outstanding payment mean?

An outstanding payment refers to the outstanding unpaid balance of the current amount due. The interest-bearing balance of a loan or product or service bought on credit from a company. It could also refer to a payment that has been made but not has not gone through and is not marked as paid for some reason.

What if my outstanding balance is negative?

It appears as a negative account balance. This means that your credit card company owes you money instead of the other way around. Typically, this happens when you’ve overpaid your outstanding balance or if you’ve had a credit returned to your account.

What do you mean by outstanding?

adjective. prominent; conspicuous; striking:an outstanding example of courage. marked by superiority or distinction; excellent; distinguished: an outstanding student. continuing in existence; remaining unsettled, unpaid, etc.: outstanding debts. (of securities and the like) publicly issued and sold or in circulation.

Why is my available balance more than my current balance?

The available balance for your account may differ from the current balance because of pending transactions that have been presented against the account, but have not yet been processed. Once processed, the transactions are reflected in the current balance and show in the account history.

Can I use my available balance if I still have money pending?

Customers can use the available balance in any way they choose, as long as they don’t exceed the limit. They should also take into consideration any pending transactions that haven’t been added or deducted from the balance.

What happens if I pay more than my credit card bill?

You won’t be penalized for overpaying your credit card, but there are also no benefits for doing so. When you pay more than the balance due, your issuer should automatically issue the amount you’re owed as a statement credit and your credit line will reflect a negative balance until you’ve spent the credit.

How is outstanding balance calculated?

It’s calculated by adding up your balance for each day of a statement cycle and dividing it by the number of days in that period. Most credit card issuers calculate the credit card interest you owe daily.