We’re rewarding the question askers & reputations are being recalculated! Read more.
1

EAD can also be higher than credit limit because of adding the costs of collection activities, noting that these can take a long time. As you mention, the credit limits will tend to have been maxed out, but also missed payments and accruing interest may have increased the exposure before the point in time at which the default is established (definitional ...


Only top voted, non community-wiki answers of a minimum length are eligible