Why is the credit card balance negative? What are the consequences of a negative amount?

Credit cards have always been used in our daily life consumption. Prepayment through credit cards has become a consumption method for many people now. This is mainly because the credit card itself has a limit. However, sometimes the credit card limit may become negative. So, what’s going on with a negative credit card limit? What are the consequences of a negative amount? Let me answer it for you today.

Why is the credit card balance negative?

1. Temporary limit expiration

When people have insufficient credit card limits, they sometimes apply for a temporary limit to use. And when you use the temporary limit, or the temporary limit expires and you have not repaid, your credit card limit will be displayed as a negative number.

2. Overdraft beyond the limit

When you use your credit card and use up the limit, and also overdraft beyond the limit, then before you repay the loan, you The credit card limit will also be displayed as a negative number.

3. There is an overpayment

When you repay a credit card, if you pay more, the overpayment will form an overpayment on your card. Payment, and this overpayment will also cause your credit card limit to be negative. When using a credit card in the future, the overpayment will be deducted first, and then the card limit will be deducted.

What are the consequences of having a negative credit card limit?

There are three main situations when the credit card limit is negative. There will be no consequences in these three situations. For example, if the temporary limit has expired and has not been repaid or the limit has been exceeded, as long as you repay it as soon as possible. Just pay. Of course, if you use it beyond the limit, you will have to pay an over-limit fee.

Will there be a credit report if the credit card limit is negative?

A negative credit card limit does not have much to do with your credit report, and a negative credit limit will not essentially lead to a credit report. Of course, like over-limit usage and non-repayment of the temporary limit, which results in a negative balance, if you continue to fail to repay the loan and it becomes overdue, you will have a credit report.

The above is the answer to "What happens when the credit card limit is negative? What are the consequences of having a negative limit?" If your credit card limit is negative, it may be caused by the above situation. However, there will be no consequences if the amount is negative, so you can rest assured.

What does a negative credit card number mean

1. Generally speaking, if your credit card bill has a negative number, it means that you have a deposit balance, which means you have an overpayment, so No repayment is required in this period.

2. Under normal circumstances, there is such a formula: total amount of credit card repayments in the current period = balance of repayments in the previous period - repaid amount/other newly signed amounts/other expenses. If the "overdue repayment amount" is a positive number, it means that there are overdue accounts that have not been paid, and the current period needs to be repaid immediately, otherwise the overdue record will continue. If the "total amount of repayment in this period" is a positive number, it means there is a debt that needs to be repaid in this period; if it is a negative number, it means there is a deposit balance and no repayment is required in this period.

3. A negative number shown on the credit card bill is a sign of excess. There is an overpayment and there is no consumption in this period, so a negative number is displayed on the bill (if you still owe money, then it will be displayed is a positive number).

4. For example, if your credit card balance is -1,000, it means that you have deposited 1,000 yuan more, but it does not mean that you owe 1,000 yuan. For credit card overflow payments, it is recommended that you do not need to withdraw it, because there may be a handling fee for withdrawal, so you can spend it directly. When using a credit card, the overflow payment will be deducted first and then the credit limit.