A negative credit card balance happens when the balance on your credit card account is below zero. This is called a negative account balance. It means that the credit card company owes you money as you have paid in excess.
The excess amount in your account is usually adjusted towards charges and purchases during your next billing cycle. You can then pay less towards the next credit card bill. If are closing the credit card account, the amount will be paid back to you in cash or by cheque.
A negative balance does not affect your credit score. The card issuer owes you money, and so, there is a reduction in your credit utilisation ratio and this has a positive impact on your credit score.
If you have a negative balance on the credit card, you have to wait for the credit card issuer to resolve the issue. The credit card company is by law required to make an effort to and return your amount to the credit card account.
If you happen to overpay the credit card balance, it will show as a negative balance in your account. This means that the credit card company has to return the amount to you.
You can request a deposit to remove the negative credit card balance. You can ask your credit card issuer if the negative balance amount can be deposited into your bank account
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