Why My Credit Card Bill in Minus? – Credit Card Negative Balance

Why do you have a negative balance on the credit card? Credit cards are one of the best ways to utilize borrowed money from the bank. But what if it starts showing a negative balance in your account? And does not allow you to make the next purchase using the same card.

The credit card balance shows the amount of purchase you have made under the billing period. And it also represents the desired interest charged on the amount you have utilized. If you make the payment for each billing cycle promptly. Then your credit card balance will show a zero balance, which is excellent for you and your credit score. But when you do not pay for the used money and interest charged. Then you will have to pay additional interest as well, and also your account will show a negative balance.

What Does a Negative Balance On a Credit Card Mean?

Whenever the credit card balance starts showing a negative fund balance. Then it can be due to refund payment or cashback payment. There is nothing to worry about because it’s a neutral situation. It will neither harm nor benefit your account balance. However, ordinary spending can positively affect your credit score. So, when the credit card balance goes negative due to refund payment, it is called the negative credit card balance situation.

Why My Credit Card Bill in Minus

Why is My Credit Card Bill in Minus? 

None of the bank account users want the negative balance in their account. Also, having a negative balance on a credit card is not a great thing. But still, in most cases, the reason for credit card bills in minus is positive.

There can be several reasons for it, and one of the common is a refund. If you return the product due to any damage or there was any dispute for the transaction. In that case, the account credit card can show you a negative balance. For example, let’s suppose you purchase a laptop for Rs35,000 but as it is delivered damaged. So you returned the product to the seller and asked for a refund. Thus, at this position, if your credit card balance was zero, then after the return, your account will show Rs(-35,000).

Another reason for a negative balance on a credit card can be the cashback amount. And if you get cashback in the account statement and that time if the account statement had less balance than the cashback. In that case, there will be a negative balance on the credit card. Therefore, at the starting of this post, we said that the negative balance in the credit card bills is primarily favorable. However, there can be some negative reasons as well that can affect the credit score. Suppose you asked the concerned bank to increase your credit card limit for a temporary duration. And you get the additional credit limit of Rs5000, and if you utilize this, then there can be a negative balance.

How To Deal With Negative Balance On Credit Card?

When you see the negative balance, then you do not need to worry about it. Because it’s a common situation that any credit card user can face. However, there are still a few steps you can take from your side.

1. Consult With The Credit Card Issuer

Most of the time, you can panic, wondering why the balance went negative. So, in that case, you can contact the credit card issuer using text or call. Because the concerned credit card issuer has clear notifications about the causes of the negative balance. Also, most credit card providers have a different way of settling with a negative balance. If you have faced this situation and are still confused, contacting a card issuer can be the best way to get a possible solution.

2. You Can Request For Deposit

It is another excellent way to deal with the negative amount in the credit balance. When you see there is a negative balance, in that case, you can ask the card issuer to deposit the same balance into the bank account. Doing it will prevent the additional interest amount you may require to pay for the payment cycle. You can use a check or check method to transfer such a negative balance without any issue. Hence, when you see a negative balance and do not want to pay interest for the same. Then utilize this great model and suggest bank professionals do the same for you.

3. Buy Some New Things

Generally, you are not required to do a technical thing to deal with the negative balance. However, if you want to utilize this negative balance for purchasing things. Then also, it can be a great way but remember it is also a type of short-term credit. And if you have about Rs10000 negative balance, you would not show interest in adding the amount until you need to spend more than Rs10000. Also, keep the spending regular you do until the balance gets zero. Once you make it zero by spending, then you can enjoy your ordinary credit limit.

What Can Be The Impact of Negative Balance On Credit Score?

In most cases, the negative balance in credit cards does not impact the user’s credit score. Because mainly, it arises due to positive reasons we discussed in this post. Hence, you do not need to worry when you see a negative balance in your credit card account. And if there is a negative balance and you have kept the spending regular. Then there will be a low credit utilization ratio that will boost your credit score. So, when you see a negative balance, you must assume the balance has gotten negative because you get a refund or cashback.


So, in this article, we discussed why a credit card account could show a negative balance. We also understood the meaning and reasons for the negative balance in credit cards. You also learned that it does not harm the credit score. However, if you keep your spending as usual and have a negative balance on your credit card. In that case, you will benefit from less credit utilization, which positively impacts your credit score. Thus, we hope now you have a clear idea of why your credit card bill balance can be negative.

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