How to deal with negative balances on credit cards

When a negative balance appears on a credit card, it is generally because the credit card amount exceeds the repayable amount during repayment. The excess repayment amount is the overpayment, that is, If your credit card has a negative balance, when the next bill is deducted, the overpayment will be deducted first, and then your credit limit will be deducted; in addition, it may be that the temporary limit has expired, and the temporary limit generally has a time limit. If you use the temporary limit , the expiration of the temporary limit will also lead to a negative balance on the credit card, and you only need to repay it.

The credit card must have at least the following information: front: name and logo of the issuing bank, credit card number (organization logo) and holographic anti-counterfeiting mark, name in English or Pinyin, activation date (usually calculated to month), The validity date (usually calculated in months), the latest issued card has a chip on the front, and the chip account and the card magnetic stripe account are two relatively independent accounts. Back: card magnetic stripe, cardholder signature field (must sign after activation), service hotline number, last four digits or all of the number (to prevent fraudulent use), credit card security code (on the signature field on the back of the credit card, followed by The three digits after the last four digits are used for credit card activation, password management, TV, telephone and online transactions, etc.). Credit card installment payment means that when the cardholder uses a credit card to make large purchases, the card-issuing bank pays the merchant a one-time payment for the goods (or services) purchased by the cardholder, and transfers the consumption funds in installments according to the cardholder's application. The cardholder's credit card account is deducted, and the cardholder repays according to the monthly credit amount. In the past, credit card installments mainly included bill installments and single consumption installments. Banks usually charged corresponding handling fees based on the number of installments.

Whether it is bill installment or single consumption installment, the premise is that consumption behavior occurs first, and then the bank sets the installment repayment of the credit loan generated. After the applicant successfully applies for a credit card, the card-issuing bank will open a separate credit card account for the cardholder at the card-issuing bank for settlement after shopping, consumption and cash withdrawal. Since the card is sent by mail after the credit card application is approved, there is no guarantee that the recipient is the applicant. In order to protect applicants and banks from fraud losses, the credit card has set up a card opening procedure before it is officially launched. Card opening is mainly done by phone or online. The relevant personal information provided during the application is checked. Once the information is met, the card opening process is completed. At this point, the applicant becomes the card holder and can officially start using it after signing on the back of the card. After opening a credit card, you generally need to set up a password for the card. After accepting a credit card, a credit card merchant or bank must review the validity of the credit card and the identity of the cardholder.

What does it mean when a credit card account balance is negative?

There are three situations when a credit card balance becomes a negative number: 1. Credit card overpayment. 2. The temporary quota expires. 3. Excessive use. These situations will cause the credit card account balance to become negative, so you need to pay attention.

These three situations are explained in detail below:

1. Credit card overpayment

If the amount due for the current period of using the card is a negative number, then there is no need to pay back the money. In the past, overpaying or overpaying a credit card was called credit card overpayment. When an extra amount of money is deposited when repaying a loan, it is called an overpayment. This amount will be deducted first when the next bill is settled. Therefore, if the money repaid is less than the amount consumed, then the amount payable for the current period is negative.

2. Temporary limit expiration

In the case of temporary limit, the total limit of the credit card is temporarily fixed. After the temporary limit expires, it reverts to the fixed limit and then deducts its available limit, resulting in a negative available limit. Most banks stipulate that the interim amount due will be charged to the current bill, which requires repayment in full, not just the minimum amount.

3. Excess usage

In order to encourage cardholders to spend, some banks' credit cards will provide a certain excess, allowing cardholders to spend more than the card limit. For example, the limit of a card is 10,000 yuan. When we accumulate 10,050 yuan in consumption, it is equal to more than 50 yuan. If the cardholder's spending exceeds the card limit, the card's account balance will be negative.

What does a negative credit card statement mean?

Generally speaking, if there is a negative number on your credit card bill, you don’t need to worry. It means that you have a deposit balance, which means there is an overpayment, so there is no need to repay it in this period.

Usually, there is a formula like this: Total amount of credit card repayment in the current period = Balance of repayment in the previous period - Repaid amount/Other entry amount/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 due 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.

For credit card limits, there are two main types including daily credit limit and maximum credit limit. The daily credit limit refers to the conventional credit limit that can be used based on the cardholder's daily consumption habits; the maximum credit limit refers to the maximum credit limit that the cardholder can apply for as needed. When there is consumption demand that exceeds the daily credit limit, you can apply to increase the daily credit limit to the maximum credit limit through customer service channels.

When a negative number is displayed on a credit card bill, it is an overpayment. There is no consumption in this period, so a negative number is displayed on the bill (if you still owe money, then a positive number is displayed. number).

Overpayment: refers to the funds that credit card customers overpay when repaying or the funds stored in the credit card account. A certain amount of fees must be paid to withdraw the overpayment. This amount can increase the available limit of your credit card or be used directly for consumption repayment. If there is an overpayment on the credit card, the overpayment will be deducted first and then the credit limit. If the overpayment is greater than the consumption amount, there will be no overdraft.

For example, if you need to repay 800 yuan this period and the actual repayment is 1,000 yuan, the extra 200 yuan is the overpayment. If you deposit money into your credit card in advance without consumption, you cannot withdraw this money. If you want to withdraw it, you will be charged a high fee, so you should try to avoid it. No interest will be accrued on overpayments placed on the card.

In fact, banks do not encourage cardholders to charge money to their credit cards because credit cards adopt a consumption-first-repayment model. Therefore, the bank stipulates that a certain handling fee will be charged for overpayment withdrawal. At the same time, the handling fees for cash withdrawals from credit card overpayments vary from bank to bank.

When the credit card balance is negative, cardholders also need to pay attention to the following matters:

1. Before canceling the credit card, all accounts must be settled, and this should be done by withdrawing cash or swiping the card. Clear the overpayment to zero.

2. Credit card overpayments are overpayments and the ownership of the money should belong to the cardholder.

3. Many banks charge additional handling fees for cash withdrawals from credit card overpayments.

Tip: Don’t panic if your credit card balance is negative again. It’s not money you owe but excess money.

That’s it for the introduction to negative balances on credit cards.