If the card issuer can’t find current information, they aren’t required to take any further action. If you overpay your credit card by more than $1 and request a refund, your credit card company must send you a refund within seven business days of getting your written request. Understanding the implications of a negative statement balance in finance. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place. For questions or concerns, please contact Chase customer service or lease definition common types of leases examples let us know about Chase complaints and feedback. View the Chase Community Reinvestment Act Public File for the bank’s latest CRA rating and other CRA-related information.
- Credit card statement balances show the total dollar amount you owe your credit card company at the end of your monthly billing cycle.
- If you’ve already paid down your balance and a fraudulent or disputed charge is credited to your account by your credit card company, it could lead to a negative balance.
- If you apply for a credit card, the lender may use a different credit score when considering your application for credit.
- 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.
If your credit card is paid up and you return something that was charged to the card, you’ll likely see the transaction reflected as a negative balance. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs. A negative balance on your card statement means the issuer owes you money. CreditCards.com credit ranges are derived from FICO® Score 8, which is one of many different types of credit scores.
Can you have a negative balance on a credit card?
Your card provider may be able to issue a refund for your negative balance. Instead of spending the credit by making new purchases, you get a where is my stimulus payment cash refund for the negative balance via cheque or direct deposit to a linked bank account. If you’re chipping away at your credit card balance with multiple payments, you might accidentally pay your credit card company more than you mean to. You might even accidentally add an extra digit or hit the wrong button when making a payment.
From industry experts to data analysts and, of course, credit card users, we’re well-positioned to give you the best advice and up-to-date information about the credit card universe. For instance, if you have a -$50 balance, you can simply apply it to future purchases. Once you make $50 in purchases, your balance will return to $0, or it could reduce your next bill by $50. Get more from a personalized relationship offering no everyday banking fees, priority service from a dedicated team and special perks and benefits. Connect with a Chase Private Client Banker at your nearest Chase branch to learn about eligibility requirements and all available benefits.
But no matter the cause of the negative balance, it is usually a positive scenario for the consumer. By conscientiously addressing and resolving negative statement balances, individuals and businesses can safeguard their financial well-being and cultivate responsible financial management practices. In the concluding section, we will recap the key insights and underscore the importance of proactive financial monitoring and planning. Card issuers are required under the Truth in Lending Act to refund credit balances over $1 within seven business days after receiving your written request. When you have a negative balance, you can request that the amount of that balance be deposited into your bank account. You can do this because a negative balance is similar to a statement credit.
Chase Private Client
So, if you have a limit of $5,000 and receive a statement credit for $170, your credit limit will temporarily be $5,170. Once you have spent the negative balance, your credit limit will return to $5,000. The temporary increase of a negative credit card balance can also lower your credit utilization, potentially boosting your credit score. For credit card statements, the statement balance reflects the outstanding balance that must be paid by the due date to avoid interest charges. On the other hand, for bank statements, the statement balance typically denotes the total funds available in the account, encompassing deposits, withdrawals, and any accrued interest or fees.
What Is a Negative Balance on a Credit Card?
These editors thoroughly edit and fact-check the content, ensuring that the information is accurate, authoritative and helpful to our audience. EDITORIAL DISCLOSURE All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser.
While you may be able to exceed your credit limit when you have a negative balance, it doesn’t increase your overall credit limit. You don’t have to repay a negative balance—it represents money that your credit card company owes you. Your statement balance shows the amount you owe or the status of your account at the end of each billing cycle.
Best Credit Cards
A negative credit balance doesn’t have a direct impact on your credit score. However, it shows that you have a low credit utilization ratio, which refers to your credit usage compared to your overall available credit. Your credit utilization ratio plays a significant role in determining your credit score.
However, you’re technically not receiving a higher credit limit because once you spend $100, your balance will be $0 and your credit limit remains at $5,000. Bank deposit accounts, such as checking and savings, may be subject to approval. Deposit products and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Since 2004, CreditCards.com has worked to break down the barriers that stand between you and your perfect credit card. Our team is made up of diverse individuals with a wide range of expertise and complementary backgrounds.
You received a statement credit
An overpaid credit card will temporarily expand your credit limit, which may help you avoid an overlimit fee — a fee card providers charge for exceeding your credit limit. Your payment history, credit utilization ratio, credit variety and length of credit history impact your credit score. A negative balance is typically interpreted as a $0 balance, which will have a neutral impact on your credit score. If you pay more than you owe on your credit card statement balance, you’ll have an overpaid credit card. It can happen if you accidentally overestimate what you owe on your credit card or make multiple manual payments monthly. ADVERTISER DISCLOSURE CreditCards.com is an independent, advertising-supported comparison service.
A common example is if you make a purchase with the card and later return the item, where you then are issued a credit back to your account. You returned the dress, and the $25 is credited back to your account that has a zero balance. Use our credit card interest calculator to see how much interest you’d owe if you carry a credit card balance. Just like when you initiate a credit card refund, reversing a fraudulent charge on your credit card may bring your balance into the negative.
If your credit balance reaches the negatives, that also means your account is likely in good standing without credit card debt. So, while a negative balance itself doesn’t affect your credit score, it usually indicates positive credit habits. Your credit card issuer may apply statement credits to your account as you claim certain rewards, like cash back. Your reward could exceed your balance and send your credit card balance into the negatives. If you overpay your credit card bill, your card issuer may apply the extra funds to your account.
If you’d prefer, you can also request a check, money order, or even cash in the amount of the negative balance. Simply call your card issuer and let them know that you would like the negative balance to be converted. A benefit to having your negative balance converted to a deposit is that you won’t have to worry about interest being applied when you spend it. Daron, a negative balance on your credit card statement’s account summary is no occasion for concern. If it’s a card you use regularly, that credit will be applied to future purchases.