Seeing a negative balance on your credit card statement or online account may be confusing.
A negative balance means that you don’t owe any money to the credit card issuer – in fact, having a negative balance means they owe you money. While this may raise some questions, a negative balance is not typically a cause for alarm.
Read on to learn more about what it means to have a negative balance and what to do when you have one.
What does a negative balance mean?
A negative balance means you have paid more than you owe to the credit card issuer. As a result, your balance is below 0. This can happen for a variety of reasons, but it’s generally not something to worry about and can be resolved with minimal effort.
Reasons you might have a negative balance
There are several reasons why you may have a negative balance. These can include overpaying a monthly statement balance, which results in a negative balance noted to your account. Additionally, if you return something you purchased or receive a refund for another reason, you may see a negative balance if you paid your balance before receiving the refund.
You may also receive a statement credit, have fees waived after you paid your monthly balance or have a disputed or fraudulent charge reversed after you have paid your credit card bill, all of which can result in a negative balance.
Does a negative balance impact your credit score?
A negative balance shouldn’t hurt your credit score. In fact, it can mean that you’ve lowered your credit utilization ratio, which can improve your creditworthiness.
What should you do when you have a negative balance?
There are a few straightforward options when you have a negative balance:
Spend the negative balance: The simplest thing to do is make additional purchases with your card to spend the balance.
Request a refund: If you don’t want to make additional purchases with this card, you can contact the issuer’s customer service department online, via email or by phone and request a refund.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
