Available Funds
You’re at the store and need to buy wine (yes, need...it’s been a long day), but you’re not sure how much cash you have in your checking account. You log into your account to see two balances: an available balance (or available funds) of $400, and a current balance of $600. Which do you rely on?
The answer is available funds. Your available funds reflect the money you can blow at this very moment in time. It’s there, and ready to be spent. Available funds are seen in real time. They change every time your latest debit hits the bank and reflect these transactions throughout the day.
Your current funds reflect yesterday’s balance at the end of the day. So if you've got your eye on a $450 bottle of vino, best downgrade for today.
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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