What is a negative credit card balance?

Key takeaways

• A negative credit card balance means your provider owes you money, not the other way around.

• It usually happens if you overpay your bill, get a refund, or receive cashback or rewards.

• It’s nothing to worry about – a negative balance doesn’t harm your credit score.

• You can spend it, leave it for future purchases, or request a refund to your bank account.

What is a negative credit card balance?

A negative credit card balance happens when your account shows that the credit card company owes you money instead of you owing them. It means your balance is below zero, giving you a small prepaid amount that can be spent on future purchases or left in the account.

How can a negative credit card balance happen?

A negative balance can occur for several reasons, including:

• Overpaying your credit card bill

• Receiving a refund from a purchase

• Cashback or rewards credited to your account

• Incorrect billing adjustments made by the card provider

Should I be concerned that I have a negative credit card balance?

You usually don’t need to be concerned about a negative credit card balance. It simply means you’ve paid more than you owe or received a refund or reward.

The balance is typically corrected automatically as soon as you start using the card for purchases, with the excess credit being applied against your new spending.

It doesn’t harm your credit score and can even give you a small buffer for future transactions.

I have a negative credit balance. What are my options?

If you have a negative credit card balance, you have a few simple options:

• Spend it: Use your card as normal. The negative balance will automatically offset future purchases.

• Leave it: You can leave the balance in your account, giving you a small buffer for upcoming payments.

• Request a refund: Contact your card provider to transfer the excess funds back to your bank account

All options are safe, and a negative balance won’t harm your credit score.

Pros and cons of having a negative credit card balance

There are advantages and disadvantages to having a negative credit card balance, as follows:

Pros

• Gives you a small buffer to use for future purchases.

• A negative balance doesn’t harm your credit score.

• Knowing your account is in credit can give reassurance that you won’t accidentally overspend.

Cons

Your money isn’t earning interest while it sits in the account.

It could cause uncertainty when reviewing statements or budgeting.

Typically corrected automatically once you start spending, so it’s not a long-term benefit.

How can I check whether I have a negative credit card balance?

You can check if you have a negative credit card balance at any time by logging into your online credit card account, using your mobile banking app, or reviewing your latest statement. A negative balance will show as a credit rather than an amount owed.

How long does a negative balance last?

A negative balance usually lasts only until you make your next purchase. Once you start using your card again, the excess credit is automatically applied against your new spending. If you don’t spend immediately, the balance can remain in your account for months without causing any issues or penalties.

Will having a negative credit card balance affect my credit score?

No, a negative credit card balance will not affect your credit score. It simply means your account is in credit, and credit reporting agencies view this as neutral or even slightly positive. What matters for your credit score is making payments on time and keeping balances within your credit limit.

How can I claim back a negative credit card balance?

If you want the money paid into your current account, then claiming back a negative credit card balance should be straightforward, as follows:

1. Check your balance: Confirm your account shows a negative balance and note the amount

2. Contact your card provider: Call or use your banking app to request a refund

3. Provide your bank details: Give your account number and sort code if asked

4. Wait for the transfer: Funds usually appear in your account within a few business days

It’s worth noting that requesting a refund due to a negative credit card balance is simply asking the card provider to return money that is already in your account.

This contrasts with requesting a refund for faulty goods or services, which is a consumer rights claim under Section 75 or the Consumer Rights Act. Here, you are asking the card provider to recover money from the merchant because the product or service was defective, not because your account happens to be in credit.

Don’t be a victim of fraud

An unsolicited approach asking you to claim back a negative balance could be fraudsters trying to rip you off.

As such, always request refunds or transfers through official card provider channels, such as your banking app or customer service line.

Regularly check your statements to confirm that refunds have been processed correctly, and never share personal details through unofficial emails or calls.

This ensures that if you have a negative balance you’d like to recoup it is handled safely and securely.

Compare credit cards with MoneySuperMarket

Looking for a new credit card? You’re in the right place. We’ll ask a few quick questions about your financial situation and the type of card you want, then search our panel of leading providers to show you what’s available.

It’s a soft search, so your credit score won’t be affected. You’ll also see your chances of being accepted and any cards you might be pre-approved for. Compare interest rates, rewards, cashback, and other card features, then click through to apply with confidence.

Moneysupermarket is a credit broker – this means we’ll show you products offered by lenders. You must be 18 or over and a UK resident. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.