What is a negative balance on your credit card?

You may also see a negative charge show up in your monthly billing statement. Refunded amounts will typically show as a negative charge (e.g. -$150) whereas regular purchases will show up as positive charges (e.g. $50). However, you can also ask your bank to apply the balance to another card on your account or send you the cash by direct deposit or a check in the mail. If you have a significant negative balance and don’t have a need to transfer it to another card, you may want to ask to receive the negative balance in cash. Often, banks will give you the cash amount through either direct deposit or they’ll mail you a physical check for the amount they owe you. Make purchases with your debit card, and bank from almost anywhere by phone, tablet or computer and more than 15,000 ATMs and more than 4,700 branches.

The reason a negative card balance is mostly positive is that your negative balance probably means you overpaid for something at some point. That might mean paying for a purchase that requires a refund or paying off a balance before a statement credit is issued. The negative balance is, thankfully, a sign that your money is being returned to you.

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A negative credit card balance means the credit card company owes you money instead of you owing them. This can happen when you overpay, receive a refund or statement credit, or the credit issuer corrects a mistake in your favor. A few conditions might cause a negative credit card balance, but it’s not a bad position to be in. Any time a negative dollar amount shows up on a credit card balance, it means the bank owes the account holder money. The negative balance will zero out or become a positive balance as the cardholder charges additional purchases. Credit cards may come with fees, from late payment penalties to charges for specific transaction types.

Refunds may be requested in writing, in person or via the phone. Again, you’ll need to ask the card issuer about the procedure for obtaining a refund. Whether you choose to work with a financial advisor and develop a financial strategy or invest online, J.P. Morgan offers investment education, expertise and a range of tools to help you reach your goals. Morgan Wealth Management Branch or check out our latest online investing offers, promotions, and coupons. It’s important to note that while a negative balance won’t hurt your credit score, it won’t provide any additional boost beyond the 0% utilization.

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And even if you don’t ask for a refund, your credit card company must try to issue a refund if you don’t make any other purchases for more than six months. If a credit card fee is charged to your account and waived, for whatever reason, it could possibly result in a negative balance. If you have a balance on another card within the same account, you can contact the bank and ask to transfer your negative balance to a card on which you owe money. Chase serves millions of people with a broad range of products. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place.

1. Flagstar Bank has home loan service centers in nine states in addition to providing online assistance to customers.
2. You may think something is wrong, when in fact it is quite the opposite.
3. At first mention, negative balances give off a negative connotation.
4. While redemption is straightforward, the card lacks a direct bank deposit option for cash back, which many other cash back cards offer.

Your reward could exceed your balance and send your credit card balance into the negatives. A negative credit card balance is when your balance is below zero. This means that your credit card company owes you money instead of the other way around. The Blue Cash Everyday charges a variable APR of 19.24% to 29.99% on purchases and balance transfers, based on your creditworthiness (see rates and fees). These APRs are standard for rewards credit cards, but don’t be fooled.

For questions or concerns, please contact Chase customer service or 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. While you’re at it, you can also be more proactive about setting up financial systems to make managing your finances easier.

Check out the Chase Auto Education Center to get car guidance from a trusted source. Gabriela Walsh is a Certified Educator in Personal Finance® and a personal finance editor at Bankrate. Her previous work experience includes various editorial positions at FinanceBuzz.

Implications of negative balances

Before you take any action to address your negative balance, you may want to confirm that you’re looking at your current balance. Cash back credit cards are incredibly popular, with rewards from 1% to 8% cash back. Our top overall pick is the Capital One SavorOne Cash Rewards Credit average property tax Card.

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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.

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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. For example, a negative balance could potentially affect your credit utilization—a measure of how much of your available credit you’re using. Experts recommend using no more than 30% of your available credit. And if you have a negative balance, your credit utilization for that card would be less than 30%—which could be good for your credit scores. If you’ve already paid down your balance non current liabilities examples and a fraudulent or disputed charge is credited to your account by your credit card company, it could lead to a negative balance. Rewards redeemed for statement credits lower your monthly balance but do not count as a regular payment.

However, if you have a much larger negative balance, such as after canceling a major trip, you may want to look into other options. 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. 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.