What does it mean when the amount due is negative?

Understanding the Negative Amount Due on Your Credit Card Statement

When you receive your credit card statement and notice a negative amount due, it can be a puzzling sight. Contrary to what you might initially think, this is not an error. In fact, it’s a sign of an overpayment, which means your credit card issuer owes you money.

Reasons for a Negative Balance:

Several factors can contribute to a negative amount due:

• Refund: If a merchant issues a refund for a purchase made on your credit card, the amount will be credited to your account, potentially resulting in an overpayment.
• Excess Payment: If you accidentally make a payment that exceeds the balance due on your credit card, the excess amount will be reflected as a negative balance.
• Promotional Credits: Sometimes, credit card issuers offer promotional credits or rewards that are applied to your account. If the credit exceeds your current balance, it can lead to a negative amount due.

What to Do with a Negative Balance:

When you have a negative amount due on your credit card, you have several options:

• Enjoy the Credit: You can leave the negative balance as is and enjoy the unexpected credit. This can be beneficial if you have upcoming purchases or expenses that you can cover with the credit.
• Request a Refund: If you prefer, you can contact your credit card issuer and request a refund of the negative balance. They will typically issue a check or transfer the funds to your linked bank account.
• Use the Credit to Pay Down Other Debts: If you have other outstanding debts, such as a loan or credit card with a higher interest rate, you can use the negative balance to pay those down and save on interest charges.

Note:

It’s important to keep in mind that a negative amount due does not exempt you from making future minimum payments on your credit card. It’s still your responsibility to fulfill your payment obligations as outlined in your credit card agreement.