Available Credit

Available Credit is the amount of your credit limit that you have not yet used.

It represents your remaining spending power on the credit card at any given point in time. If your credit limit is ₹2 lakhs and you have spent ₹80,000 on purchases and withdrawn ₹10,000 as cash advance, your Available Credit is ₹1,10,000. What is Available Credit? You can think of it as the real-time balance remaining on your card. Every time you make a purchase or cash withdrawal, your Available Credit decreases. Every time you make a payment to your credit card account, your Available Credit increases by the amount of the payment (minus any interest or fees). Available Credit is shown on your credit card bill, on your bank's mobile app, and on the payment gateway when making purchases. When you swipe your card at a merchant, the payment terminal checks with the issuing bank in real time to confirm whether you have sufficient Available Credit for the transaction. Several factors affect your Available Credit. Purchases reduce it immediately. Cash advances reduce it by the full amount plus the applicable fee. Pending transactions — those you have authorised but which have not yet been posted — also temporarily hold a portion of your limit. Refunds from merchants add back to your Available Credit once the refund is processed, which can take 3 to 7 business days. Maintaining a healthy Available Credit ratio is important for your credit score. If your Available Credit drops to zero, your card will be declined. If it stays near zero for extended periods, credit bureaus may interpret this as financial distress, which can lower your credit score. Ideally, keep your credit utilisation below 30% of your limit to maintain a good credit score. You can increase your Available Credit by requesting a credit limit increase from your bank (subject to income and credit profile assessment) or by paying down your outstanding balance. Some cardholders choose to keep their credit limit modest intentionally to control spending impulses — in this case, the low Available Credit serves as a self-imposed spending boundary.