The average outstanding balance refers to the unpaid portion of any term, installment, revolving or credit card debt that earns interest over a specified period of time.
Interest on revolving loans can be calculated using the average balance method.
Credit card companies report monthly outstanding balances to consumer credit bureaus for use in credit scoring and credit underwriting.
Average outstanding balance can be calculated based on daily, monthly or other time period.
Large outstanding balances can be an indicator of financial problems for both lenders and borrowers.
American Express cards are issued by American Express, a publicly traded financial services company, and are payment cards, credit cards, or prepaid cards.
The minimum monthly payment is the smallest amount of money a borrower can pay on a revolving credit account each month and still be in good standing with the credit card company.
The annual interest rate on a credit card is the annual interest rate that is applied monthly, i.e. the monthly amount charged on the account is one twelfth of the annual annual interest rate.