Negative balance on your credit card means “don’t panic” so that the credit card company may interestingly owe you some money. I used the word “interestingly” because it is not common that credit card companies owe money to consumers as you already know.
It is always the other way around. There are several reasons why that little sign could show up on your monthly statement;
- You may have overpaid your last statement.
- You may have returned an item or items you purchased and you got refunded.
- Your credit company overcharged you for something in the past. Either you complained and they corrected, or you didn’t complain, but somehow, they noticed themselves (I have to say that this is very rare) and they corrected it.
- You may have got refunded by other means, such as they may have overcharged monthly or annual fees.
- And finally, it may be your lucky day that the credit card company made a mistake, but don’t go ahead of yourself yet, because sooner or later they will find out the error and reverse the transaction. By the way, credit card companies do not usually make mistakes, they usually make an excuse to overcharge you. Once you complained about overcharge, there is a small chance that you get your money back. This money back may also result in a negative balance on credit card statement.
In case of an overpayment situation
Let’s take a look at an example of the overpaid situation. If your last statement was 100$, and you accidentally paid $150. Moreover, you didn’t make any purchase in your current month, or your purchases are less than $50, let’s say $20.
Then, you will see the negative balance of either $50 on your next statement if there is no other transaction during the current month, or $30 if you charged your card for $20 only during the current month.
Negative Balance on Credit Card – In case of Refunds
Let’s take a look at an example of a refund, now. If you purchased something for $100, then returned it, and there is no other transaction in your current month or your transactions are less than $100, let’s say $80.
Therefore, you will see on your statement either minus $100 if there are no other charges, or minus $20 if you purchased something that costs $80.
To summarize, the amount of the minus sign or negative balance on credit card is really your money that credit card company owes you. It mostly happens when either you overpaid or you got your money back by returning something.
Here is what you need to do in order to get your money back: either you spend it in next months by simply charging your credit card, or you could ask for a refund check, or you could not do anything until you need that money one day, because the company will keep that balance for you until you charge or request it. Needless to say, if there are monthly or annual fees on your credit card, that amount will decrease in time, if you have unauthorized transactions on your credit card statement then you may help factact free disclosure .