Mechanism Of Negative Balance On Credit Card


Disposal of Negative Balance:

Negative credit card balance may be disposed of in two ways.

  1. The credit card may be normally used to purchase on it, and when this credit balance will be applied, the negative balance will gradually move towards zero and finally it will settle down.
  2. In the second method, one can request the issuer of a credit card to disburse the negative amount to you in the form of cash, cheque, money order or credit in your deposit account.

Different credit card issuers have their own policies to settle this issue.

Here one more doubt must be cleared that negative credit card balance does not enhance the credit limit of a credit card, because the credit limit is set by the card issuer, and it will remain unchanged until being revised by the issuer. But the card owner would be able to spend more than the card limit by the amount of negative balance of his credit card.


The first and foremost thing about negative credit card balance is that we don’t have to confuse by the world negative, because due to the reverse nature of credit card functions, reverse terminology is being applied here. So negative credit card balance is not a negative balance at all. In fact, it is positive in its character. In real terms, if you have negative credit card balance, it means you have some extra money to meet your requirements. Moreover, you have two options also, either use the statement credit on an upcoming purchase or request a refund from your card issuer. To know the source of negative credit card balance you may contact your card issuer.

Pages ( 2 of 2 ): « Previous1 2