Sept. 23, 2022 • 4 min read This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to
the offers listed on this page. For an explanation of our Advertising Policy, visit this page. When you first see it, the term "negative balance" can make you think you made a mistake like forgetting to pay your credit card balance. However, a negative balance on your
credit card is actually a good thing, because it means the bank owes you money instead of the other way around. Still, you may be less than thrilled to have your money tied up in a credit card account. So, we're breaking down the best things to do when you find yourself with a negative credit card balance. We'll cover the different things you can do, all requiring varying degrees of effort on your part. You'll most often have a negative credit card balance after you've made a return or received a refund for something.
Sign up for our daily newsletter Recently, I experienced this when I made a return before paying the balance on my Citi® / AAdvantage® Platinum Select® World Elite Mastercard®. However, the return
didn't process until after I had paid my bill. The result? A negative balance on my card of just more than $100. For something as minor as this, I'll just use this card to spend around $100 to take care of my negative balance. However, if you have a much larger negative balance, such as after canceling a major trip,
you may want to look into other options. Related: Getting a refund after you cancel your credit card This is the simplest option. Just keep using the card that has a negative balance and the purchases you make on the card will eventually bring you back zero or a positive balance. With this approach, there is almost never a need to contact the bank
or do anything out of the ordinary. If you have a balance on another card within the same account, you can contact the bank and ask to transfer your negative balance to a card on which you owe money. This approach takes a small amount of effort, but it gives you the benefit of putting your future spend on a card that will earn you the most points rather than just trying to use the negative balance on one specific card. TPG
senior credit cards editor Matt Moffitt recently had a negative balance of more than $400 on his Platinum Card® from American Express due to a refund. He also had a positive balance of around $500 on a Delta card.
Instead of spending more on his Platinum Card, he used the American Express chat feature to ask an agent to transfer the negative balance and put it toward the Delta balance. The agent manually completed this action, and it took less than 48 hours for the balance to show up on the Delta card. If you have a significant negative balance and don't have a need to transfer it to
another card, you may want to ask to receive the negative balance in cash. Often, banks will give you the cash amount through either direct deposit or they'll mail you a physical check for the amount they owe you. Again, this requires contacting the bank and possibly waiting for a check in the mail; however, it can be worth it to have the freedom to spend that money on a different card that will earn you more rewards than the card with the negative balance. Or, you may just want the cash
flow. Related: How 5 minutes of chat got me 85,000 points plus $150 A negative credit card balance is a good thing because it means the bank owes you money. When you find yourself with a negative balance, choose the option that works best for you to use that money and maximize your rewards. The easiest way is to just spend on that particular card. However, you can also ask your bank to apply the balance to another card on your account or send you the cash by direct deposit or a check in the mail. Featured image by ISABELLE RAPHAEL/THE POINTS GUY Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities. TPG featured card
Intro offerEarn 80,000 ThankYou® points60,000 points Recommended Credit670-850 Excellent, Good Why We Chose ItThe Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet. Pros
Cons
Rewards Rate
Why We Chose ItThe Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet. Pros
Cons
Is a negative credit card balance good?Negative account balances can occur for several reasons, but regardless of the cause, a balance below zero isn't a bad thing. In fact, it means you have a credit on your account, so future purchases up to that amount won't cost you additional money.
Does a negative balance mean you owe money?What does this mean? A negative balance indicates that your bill was overpaid and that you may be eligible for a refund.
Do you have to pay a negative credit card balance?It's possible to have a negative balance—also known as a credit balance—on a credit card. And if you do have a negative balance, don't worry. It just means that instead of owing money to your credit card company, your credit card company actually owes you.
How long can you have a negative balance?In most cases, banks will close a checking account after 60 days of being overdrawn. Ask your bank about the terms of their overdraft policy to find out the exact length of time your account can remain overdrawn.
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What happens when you have negative balance on credit card
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