Credit balance definition

What is a Credit Balance?

A credit balance is the ending total in an account, which implies either a positive or negative amount, depending on the situation. Thus, a credit balance could refer to an asset or a payment obligation, depending on the circumstances.

Examples of a Credit Balance

A credit balance applies to the following situations:

• A positive balance in a bank account

• The total amount owed on a credit card

• A negative balance in an asset account

• A positive balance in a liability, equity, revenue, or gain account

• The remaining balance in a cash account with a broker after securities have been bought