A credit balance (also called a negative balance) happens when you’ve paid more than your total balance due. This could be good news because you might get money back.
What to do about your credit balance
If you have a credit balance, you have options to bring the balance back to $0. Keep in mind that in some situations this happens automatically.
Spend the credit balance
If you have a credit balance, you can use your credit card like you usually do, and Capital One will apply the account credit toward your purchases. Eventually, you won’t have a credit balance. We’ll put that money toward purchases on that card until you’re back to a $0 balance.
Get an automatic refund
A If you have a credit balance, Capital one will automatically issue a credit balance refund should be issued automatically after two billing cycles.
Request a refund
If you have a credit balance and you request a refund, Capital One will generally send you a refund within 7 business days of receiving your request. You can make your request by phone, in person or through a written request. To be eligible for any refund, the credit balance must be more than $1.
What causes a negative balance
Here are a few reasons why you might have a credit balance below $0:
Overpayment of your credit card bill: You might accidentally overpay on your credit card. You could have added an extra digit, hit the wrong button when making a payment, or made multiple payments. If you pay more than you owe, you’ll end up with a credit balance.
Refunds for returned purchases: If you pay off your balance before getting a merchant refund or if that refund is more than your current balance, that refund would result in a credit balance.
Statement credits: If you have a rewards credit card, you might earn rewards as a statement credit applied to your balance, which could result in a credit balance if it’s more than your current credit card balance.
Fraudulent and disputed charge reversals: If you’ve already paid down your balance and a fraudulent or disputed charge is credited to your account, it could lead to a negative balance.
What causes a negative balance on my credit card?
A negative balance (also called a credit balance) means you’ve paid more than your total balance due. There are several reasons why you might have a negative balance, including:
- Overpayment of your credit card bill
- Refunds for returned purchases
- Statement credits
- Fraudulent and disputed charge reversals
Does a negative balance on my credit card affect my credit score?
Having a negative balance on your credit card, also called a credit balance, likely won’t hurt your credit score.
Is my credit limit higher when carrying a negative balance?
No, your credit limit stays the same.
For example, if your credit limit is $5,000 and you have a negative balance of $100, that doesn’t mean your credit limit becomes $5,100.
It means you can charge up to your existing credit limit plus the negative balance.
How can I get a refund for an overpayment?
Spend the credit balance:
If you have a credit balance, use your credit card like you usually do, and Capital One will apply the account credit toward your purchases.
Get an automatic refund:
Capital One will issue a refund if you don’t make any other purchases after two payment cycles.
If you don’t use the money for up to four billing cycles, we’ll automatically send a refund check to the address on file. Note, your overpayment must be more than $1.
Request a refund:
Capital One will send you a refund within 7 business days of your in-person or written request. Note, your overpayment must be more than $1