What does credit balance mean

Choose a dictionary. Clear explanations of natural written and spoken English. Usage explanations of natural written and spoken English. Grammar Thesaurus. Word Lists. Choose your language. My word lists. Tell us about this example sentence:. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

Investopedia does not include all offers available in the marketplace. Related Terms Rebate A rebate in a short-sale transaction is the portion of interest or dividends paid by the short seller to the owner of the shares being sold short. Short Selling Short selling occurs when an investor borrows a security, sells it on the open market, and expects to buy it back later for less money.

Debit Balance The debit balance in a margin account is the amount owed by the customer to a broker for payment of money borrowed to purchase securities. Portfolio Margin Portfolio margin is the modern composite-margin requirement that must be maintained in a derivatives account containing options and futures contracts.

Maximum Leverage Maximum leverage is the largest allowable size of a trading position permitted through a leveraged account. What Is a Convertible Hedge? A convertible hedge is a strategy where an investor buys a convertible bond and then shorts the stock to increase the overall yield.

Partner Links. Key Takeaways A credit card balance is the total amount of money that you owe on your credit card. The balance increases on a credit card when purchases are made and decreases when payments are made. Credit card balances can increase your credit utilization ratio, which can decrease your credit score.

Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Learn how to improve your credit utilization ratio. What Everyone Should Know about Average Outstanding Balances An average outstanding balance is the unpaid, interest-bearing balance of a loan or loan portfolio averaged over a period of time, usually one month.

The purchase rate is the interest rate applied to credit card purchases and only applies to unpaid balances at the end of the billing cycle. What to Know About Credit Card Debt Credit card debt is a type of unsecured liability that is incurred through revolving credit card loans. It greatly affects your credit score.

Transactor A transactor is a consumer who pays his or her credit card balance in full and on time every month. Transactors do not pay interest or late fees. Zero Balance Card Definition A zero balance card is credit card on which a consumer does not owe any money because they have paid any balances owed in full without adding new charges. Partner Links. Related Articles.

Investopedia is part of the Dotdash publishing family. Read more to learn about the impact that carrying a credit card balance can have on your financial health. For your most up-to-date account information, you can often log into your account online or call your credit card company.

Paying attention to your credit card balance can help you keep your finances on track and improve your credit health. Here are a few reasons why. Image: Man shops online with a digital tablet.