what is an available balance 
the available balance in a checking account or on demand account is the total amount that the account holder is free to use immediately the available balance is the total amount that has been cleared for deposits or transfers to the account after all deductions and withdrawals have been processed a credit card account s available balance is normally referred to as available credit this is the amount that the account holder is authorized to borrow it is the account holder s credit line minus any outstanding charges an account s available balance will at times differ from its current balance the current balance includes any pending transactions that haven t been cleared if you want to avoid interest charges on a credit card pay the statement balance in full by the due date you do not have to pay the current balance to avoid interest charges that figure includes newer purchases that won t incur interest charges until the next monthly statement understanding available balance