What is Open Credit?

The phrase open credit can mean two things. Open-ended credit is usually referring to credit in which a consumer can purchase something, and when he pays the money back the credit is still open to use again, such as credit cards or home equity loans. Open credit can also refer to how much credit you have left on your credit cards or equity line. For example, if you have a credit card with a $1,000.00 credit limit and you have made purchases that total $500.00 you will still have $500.00 of open, or unused, credit left to use.