Available Credit
How much can you borrow? How much credit is available to you? If your Uncle Zuck likes your hippie politics, you're golden...massive line of credit. If you have to borrow or get credit elsewhere, it's probably more limited.
Think the credit limit on your credit cards, the amount of equity you could pull out of your house, the amount you could get for a personal loan. Do you have any collateral you could borrow against (stocks, bonds, valuable porcelain kitty statues, etc.)? All that kind of stuff can factor into your available credit.
In stock trading terms, if you're talking about a broker margin account, then the credit available or credit limit is usually 50 percent of the liquid value of securities you have in there.
Related or Semi-related Video
Finance: What is a Credit Limit?39 Views
Finance, a la shmoop. What is a credit limit? Alright people well simply put the
maximum amount you get to charge or use on a loan or credit account, that's a [Credit limit definition written on a 100 dollar bill]
credit limit. So yeah it's that thing that keeps toddler Joey from ordering
two hundred thousand dollars worth of Snickers bars. [Toddler looking at the snickers bar]
If you accidentally you know leave out your Amex. (Illustrative example time) If you have a ten thousand
dollar line of credit or credit card you can't spend $20,000 on a trip to Vegas,
sorry. You might be able to go on a smaller trip to Atlantic City but once [Picture of Atlantic City]
you hit that 10 grand well the party's over until you pay some of that money [$10,000 flashing in red]
back, and by the way taking that smaller trip and then putting everything on red [Chips landing on a roulette table]
22 in hopes of funding your next trip to Vegas? Probably not the soundest
financial planning... sorry, let's keep it real. [Guy putting on a serious face]
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