WalletHub, Financial Company
@WalletHub
A negative balance on a credit card means your balance is below zero, and your credit card company owes you money rather than the other way around. Your credit card balance could be negative if you make a payment that's a lot larger than the balance due or if you receive a credit to your account. 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.
Normally, you’ll have a positive balance – meaning you owe money – during the 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.
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 marked 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.
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.
What to Do if You Have a Negative Balance on a Credit Card
Let the negative balance cover future purchases
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.
Ask for a refund
If you want a cash refund, you’ll have to call your bank’s customer service number. Otherwise, the issuer will typically cut a check after several months of card inactivity. The customer service representative will tell you whether or not you need to submit your request in writing.
Keep in mind that 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.
Popular Credit Cards in January 2026 from Our Partners
-
Low Intro APR & Bonus Rewards
-
Everyday Cash Back
-
Building Credit
-
0% Intro APR
Joey Triggs, Member
@triggs_joey
It just means you paid too much. It's no big deal, the next time you buy something, your new balance will have to go through the extra amount first.
Travis Sharee, Member
@travis_sharee
If you have a statement with a minus sign before the amount due, it means the bank owes you money. It could be from a refund, or an overpayment of your credit card bill. There’s nothing to worry about, just spend whatever you have, and you won’t have to pay until you see your balance turn positive again. The bank will not issue a refund.
People also ask
What happens if you overpay your credit card?
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...
read full answer by WalletHub, Financial CompanyWhat is a credit balance refund?
A credit balance refund is a reimbursement you get after winding up with a negative balance on your credit card, which might occur if you pay more than the total balance or if you get a refund for a returned purchase. Credit card companies are required by law to issue a refund within 7 business days at the cardholder’s request.
Key Things to Know About Credit Balance Refunds
- Depending on your credit...
Can I still make a purchase if my account has a negative balance?
The bank typically doesn’t pay overdrafts if your account isn't in good standing. Every day, non-recurring debit card transactions (individual debit card purchases such as at the grocery store or a one-time online purchase), will only be authorized when the bank determines you have enough available funds in your account or in your eligible linked Overdraft Protection account at the time of the transaction. Otherwise, the bank will decline the transaction and won’t charge an...
read full answer by WalletHub, Financial CompanyDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.