Credit Cards

Credit cards serve as essential tools for handling expenses and building credit. Occasionally, you might notice a negative balance on your statement. While it may seem confusing at first, grasping what a negative credit card balance means, why it happens, and how to manage it is vital for making informed financial choices. What is a Negative Credit Card Balance? A negative balance means the issuer owes you money. It appears with a negative sign before the balance amount or sometimes as a credit. Although unusual, this isn’t an error but a normal situation. Causes of a Negative Credit Card Balance Several factors can lead to a negative balance: Overpayment: This is often the most common cause. Paying more than you owe leaves an excess, resulting in a negative balance. Refunds and Returns: Returning an item or receiving a refund after paying your bill can result in a negative balance if