What is a credit balance refund on the First Progress Platinum Elite?

If you overpay your credit card balance, the payment will result in a negative account balance, which means the credit card company will owe you money. The next time you make a purchase with the credit card, the amount you overpaid will count toward it.

If you accidentally overpaid your credit card and would like a refund, you can submit a written request to your credit card company. Federal law requires a refund to be sent within 7 business days of a written request, but some card issuers will allow you to request a refund over the phone instead. If you haven’t requested a refund or received credit for the amount by which you overpaid your credit card within 6 months, the issuer is legally obliged to make a good-faith effort to get a check in your hands.… read full answer

Generally speaking, nothing bad can happen due to overpaying, as long as it isn’t a huge overpayment. If you overpay by a lot, the payment could trigger fraud precautions with your card issuer. Overpayment of credit cards can be associated with refund fraud and money laundering, and could cause your account to get frozen or even closed.

That said, there are a few things that won’t happen when you overpay your credit card:

1. Overpaying will not increase your credit score more than paying in full. Negative balances show up on a credit report as $0 balances. Having a balance of zero is good for your credit score, but you won’t get an extra boost by overpaying.
2. Overpaying will not raise your credit limit. Overpaying will temporarily afford you more spending power, allowing you to charge a larger purchase than you would be able to otherwise. But, technically speaking, your official credit limit does not actually change.
3. You won’t earn interest on a credit card overpayment. You won’t profit from overpaying your credit card like you would if you deposited the same amount into an interest-earning savings account. You can’t earn interest on the money you overpay to a credit card account.

Overall, if you overpay your credit card by accident, don’t worry about it too much. The money is legally yours. And if you accidentally trigger a fraud investigation by overpaying with an extra digit, for example, just give the card issuer a call and explain the mistake.

Apart from getting some extra wiggle room with your credit limit for a big future purchase, there aren’t many reasons to overpay on purpose. It’ll only tie up your cash and won’t earn you any interest.

A negative balance on a credit card means your credit card company owes you money, rather than the other way around. In other words, you’ve paid more than your total balance due. Credit card companies generally prevent you from paying more than you owe, especially online. But if you pay by check, you might get around the policy. You’ll see the negative balance on your monthly statement as well as on the main page of your online account when you log in.… read full answer

Normally, you’ll have a positive balance – meaning you owe money – during months you use your card. If you fully pay off such balances by the due date each month, you won’t be charged any interest. And as long as you pay at least the minimum amount required, your account will stay in good standing.

But if you’ve paid more than you owe, or if your statement credits exceed your charges, you’ll see a negative balance instead. The money a credit card issuer owes you could cover future purchases, or they could send you a check or make a deposit into your bank account. Different banks have different policies, but if you want a cash refund, you generally need to request one by phone or in writing. Otherwise, the issuer will only cut a check after several months of card inactivity.

So a negative balance certainly isn’t anything to worry about. But there are a few different ways to move forward, and knowing what your options are is always helpful.

Here’s what a negative balance on a credit card means:

• You’ll have a negative balance if your credit card issuer owes you money. It will be noted with a minus sign in front of the number listed for your current balance.
• You could see a negative balance if you accidentally overpaid your bill. You could also see one if you got a refund for a returned purchase.
• Some credit cards offer rewards in the form of statement credits. If you redeem for credits totaling more than you owe, you’ll have a negative balance.
• If you leave a negative balance on your account to cover future purchases, your next month’s balance will be reduced by that amount. For example, if you had a balance of -$50 and made $150 in purchases over the next billing cycle, your balance would only be $100.
• If you want a cash refund, you’ll have to call your bank’s customer service number. The customer service representative will tell you whether or not you need to submit your request in writing.

A negative balance on a credit card will also lower your credit utilization ratio. Using between 1% and 10% of your available credit is ideal. But negative utilization for one account certainly isn’t a bad thing.