{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/credit-card\/what-negative-balance-means-on-credit-card\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/credit-card\/what-negative-balance-means-on-credit-card\/","headline":"Credit Card Negative Balance: Reasons, Effects, & Solution","name":"Credit Card Negative Balance: Reasons, Effects, & Solution","description":"While most people associate credit cards with owing money, sometimes you might encounter a credit card negative balance. It is a situation where the bank owes you money.It can be confusing, but it is a sign that your credit card account is in good standing. In this blog, we will explain what a credit card negative...","datePublished":"2024-08-22","dateModified":"2024-08-22","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/credit-card-negative-balance.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/credit-card-negative-balance.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/credit-card\/what-negative-balance-means-on-credit-card\/","about":["Credit Card"],"wordCount":1203,"articleBody":"While most people associate credit cards with owing money, sometimes you might encounter a credit card negative balance. It is a situation where the bank owes you money.It can be confusing, but it is a sign that your credit card account is in good standing. In this blog, we will explain what a credit card negative balance is, and various aspects related to it.Understanding Credit Card Negative Balance and its ReasonsAlso called credit card minus balance, it occurs when your credit card account balance is less than zero. This means that the credit card-issuing bank owes you money. This can occur when your account’s payments or credits exceed your charges.For example, if your credit card balance is – \u20b9500, it means you have a credit of \u20b9500 on your account.Common Reasons for Credit Card Negative BalanceThere may be several reasons you might see a negative outstanding balance on your credit card:1. OverpaymentIf you pay more than what you owe, the excess amount will show as a negative balance in your credit card statement.2. RefundsWhen you return an item or cancel a service, the refund processed on your credit card may lead to a negative balance. It can occur if you have already paid your statement balance in full.3. Reward Points or CashbackEarning reward points or cashback can also create a negative balance. Again, this is likely to occur if the reward points or cashback get credited to your account after you have paid your bill.4. Credits for FeesSometimes, your credit card-issuing bank reverses a fee, such as an annual fee or a late payment fee. This may lead to a negative balance on your credit card.5. Promotional CreditsSometimes, credit card companies offer promotional credits or bonuses that can lead to a negative balance.Impact of Having a Negative Balance on Your Credit CardA credit card negative balance is not a cause for concern. Instead, it can have a few positive effects:1. No Interest ChargesWith a negative balance, there is no outstanding debt that will lead to interest. This means no need to worry about paying interest until your balance becomes positive again.2. Good Financial StandingA negative balance implies that you are not carrying a debt. This can be a sign of good financial management.3. Automatic AdjustmentThe credit card’s negative balance will offset any future charges. So, you can use the credit to pay for new purchases.How to Deal with a Credit Card Negative BalanceHave a negative outstanding balance on your credit card? Here\u2019s what you should do:1. Check Your AccountCheck your credit card statements to check whether the negative balance is being reflected. Track it until it returns to zero or positive balance.2. Use Your CardMake new purchases using your credit card to utilise the negative balance. New transactions will reduce the negative balance until it reaches zero or becomes positive.3. Request a RefundIf you prefer the money to be refunded back in your bank account, contact your bank and request a refund of the negative balance. They may issue a cheque or transfer the amount to your bank account, as per their policies. Also Read:What Is a Credit Card Number and How Is It Useful?ConclusionA negative credit card balance implies that the bank owes you money. This may be because of overpayments, refunds, or rewards credits. While it has positive implications, it is essential to check your account and manage this balance with care. Reach out to your bank\u2019s customer service for assistance.Manage your finances with confidence using IndusInd Bank\u2019s diverse range of Credit Cards. Whether you are seeking unmatched privileges like international airport lounge access or a rewards program where the rewards never expire, we have it all. Apply now for an IndusInd Bank Credit Card to explore our best-in-class offerings today! Disclaimer:The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.Share This:"}