How is available credit calculated? This question is about How is My Credit Limit Determined?

How is available credit calculated?

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This question is about How is My Credit Limit Determined?

Maria Adams, Credit Cards Moderator

@m_adams • 09/27/21 This answer was first published on 09/27/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Available credit is calculated by subtracting your current balance from your overall credit limit. Your current balance might consist of:

Purchases
Fees
Interest

So if your overall credit limit is $1,000, and your current balance is made up of $450 in purchases, $20 in fees, and $30 in interest, your available credit will be $500:

$1,000 – ($450 + $20 + $30) = $500

It’s important to always be aware of your available credit, so you don’t max out your credit card. In case you’re trying to spend more credit than what’s available to you, your card might get declined.

To find your card’s available credit, sign in to your online or mobile banking account, or check your monthly statement.

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