negative balance on credit card

On the other hand, you could request the credited amount be disbursed to you in some form other than a statement credit. Other options available to you may include cash, check, money order or credit deposit. On one hand, you could do nothing and use your card as you normally would. A negative balance on your credit card is potentially a sign that you’ve overpaid what you owe.

  1. So, if you have a limit of $5,000 and receive a statement credit for $170, your credit limit will temporarily be $5,170.
  2. This law offers a guideline for lenders on how to deal with a negative balance situation, or credit balance, in a consumer’s account.
  3. A negative credit card balance occurs when you’ve overpaid or received a refund, resulting in the credit card company owing you money.
  4. However, you may still overpay if you have autopayments set up but accidentally pay manually as well.

Does a Negative Balance Affect Your Credit Score?

Then, you go out and use your card to pay for an $80 dinner with friends. Your credit card balance would then reflect an owed balance of $30. If you are confused or in doubt about the nature of your negative balance, you may want to contact your card provider. Your provider can verify that your credit card statement is correct and answer any questions you have. Your statement balance shows the amount you owe or the status of your account at the end of each billing cycle. A negative statement balance applies to the previous billing period.

Refunds for returned purchases

A negative credit card balance means your credit card negative balance on credit card provider owes you money, not the other way around. While you don’t have to worry about a negative card balance hurting your credit score, a few actions could bring it back to zero. Read on to learn how to respond if you notice your credit card balance falling into the negatives. If your negative balance is an amount that’s more than you’re comfortable with or you need the money for other expenses, you can request a refund from the company. At first mention, negative balances give off a negative connotation. You may think something is wrong, when in fact it is quite the opposite.

Here’s what to do if you have a negative balance on your credit cards

Experts recommend using no more than 30% of your available credit. And if you have a negative balance on a card, that card will not raise your credit utilization ratio. If you regularly overpay your credit card to make room for increased spending, you may want to consider contacting your provider and requesting a credit limit increase.

Before you take any action to address your negative balance, you may want to confirm that you’re looking at your current balance. If you have other accounts with the card issuer, you will still have access to your online account and can request a refund through your online portal. If not, you must call the number on the back of your credit card or visit a local branch. Maybe you don’t want to use this credit card anymore or plan to close your account. In this case, you can request back money from your credit card’s issuer. You can typically do this via secured message, calling your card’s customer service line, or even heading into a branch.

negative balance on credit card

If you’re concerned that the negative number may be inaccurate, contact your financial institutions customer service department for clarification. Otherwise, you can request a cash refund or just keep using your card like usual. If you see a negative balance on your credit card statement, don’t panic.

A negative balance on your card statement means the issuer owes you money. You can do a few things with a negative credit card balance, but if you want a refund, know that policies may vary from issuer to issuer. You may receive the requested refund as a check, cash or money order. But in order to receive the refund, you’ll need to have a current address or phone number on your account. If the card issuer can’t find current information, they aren’t required to take any further action.