Sunday, December 4, 2011

I was asked to fill out a credit reference. What's the difference between balance open and balance current?

The credit reference form is requesting balance open, current, over 30 days, over 60 days, over 90 days. I don't get the difference between balance open and current|||The balance when you opened the account, current is how much balance do you have now.|||For them Current Balance is the amount that is between 0 and 30 days old. Balance open would be the sum of the Current, 30 Days, 60 Days, 90+ days...





Example:


Current: $100


31-60: $50


61-90: $25


91+: $250





So the Current would be $100, the balance open would be $425. When these numbers are close they would be considered a better credit risk(because it means they pay their bill when due), than if the numbers were very far apart.

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