The situation could also arise if you are refunded some money for a returned purchase, for instance, and also made the full payment on your bill. You could lose the overpaid amount if the card issuer tries to refund you but doesn’t have your latest contact information or bank account details and is unable to contact you. Here’s everything you need to know about overpaying a credit card bill, from how it happens to how you can get your money back. If you have a larger statement balance than your credit during the following month, the overpayment credit will be applied and the remaining balance you owe is reduced.

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If this happens, you’ll wind up sending more money to the credit card company than you owe them. However, it is possible to do the opposite, paying more than the full amount what happens when you overpay your credit card due — resulting in a negative credit card account balance. In fact, a negative balance won’t help your score, either—negative balances aren’t factored into a credit score.

How long do you have to dispute a credit card charge?

Paying attention to your outstanding balance on the day you plan on making a manual payment can help you avoid overpayment. A credit card balance is the total amount of credit that you’ve used on your card. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews. That’s worth considering before you decide to automate paying the statement in full.

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Although it may feel like a gut punch to have accidentally overpaid your credit card balance, it is usually just fine, and no action is needed. But less cynically speaking, the best credit cards want to keep their customers happy and make sure they have access to the lines of credit they need. For example, if you have a $10 overage from your last credit card payment, you could purchase something for $10 to bring your current balance to zero. An overpayment is when you, the cardholder, have overpaid on your balance and therefore have a negative balance.

• Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you.
• Once you’ve spent down the statement credit, your account balance will reflect your regular credit line.
• EDITORIAL DISCLOSURE All reviews are prepared by CreditCards.com staff.
• While credit card overpayments are usually pretty simple to clear up, they can still affect your cash flow, leaving you in financial limbo until you get things sorted out.
• When you overpay your credit card, the excess amount creates a credit balance on your account.
• Credit card companies report negative balances as a “zero balance” when forwarding your card activity to the credit bureaus.

Your card issuer may offer refund requests online or over the phone and may honor a request even if you’re only an authorized user on the account. At a minimum, you can call your credit card issuer to ask about refund options and then follow up with a written letter outlining your request. Start by contacting both your credit card company and your bank as soon as possible. If that’s impossible, you can at least request a refund right away with the credit card company and ask your bank to waive the overdraft fee. There’s no guarantee, but banks may waive overdraft fees in situations like these. The one thing you shouldn’t do is keep a negative balance on your credit card.

The decision to increase one’s credit limit depends on several factors. Banking services provided by Community Federal Savings Bank, Member FDIC. If your issuer doesn’t make this information as easy to find, you can always go and check your transactions as your payment will also be displayed here. Whether you choose to work with a financial advisor and develop a financial strategy or invest online, J.P. Morgan offers investment education, expertise and a range of tools to help you reach your goals. Morgan Wealth Management Branch or check out our latest online investing offers, promotions, and coupons.

There’s no benefit to letting a credit card company hold on to money that could be earning you interest in a bank account. Another way to address a negative balance on a credit card is simply to do nothing. If you don’t explicitly request a refund, the bank will automatically roll over the unapplied credit toward your next statement balance. Now that you know what happens if you overpay your credit card, you may be wondering if there’s anything you can do to fix it. If your credit card balance is under $0, and you’re owed money back, there are a few ways to move forward.

You can generally resolve an overpayment issue by calling your issuer and explaining the mistake. Once you verify your identity as the primary cardholder and explain the error, your card should be reactivated or your account restored. Apply for credit cards confidently with personalized offers based on your credit profile. An interest in your credit report and score, though, can serve you well.

✝ To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. When requesting a refund by mail, make sure to send your request through certified mail so you have proof of the date it was received by the bank. You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering.

Essentially, you’re requesting a new card with lower annual fees and fewer benefits. And since you’re already an account holder, you won’t be subject to any hard inquiry, and the average age of your credit remains. Before you decide to cancel your old card after a balance transfer, there are questions that you need to ask. Or maybe you still need the card in the future and don’t want to lose any current rewards.

Because overpaying your credit card technically reduces your ratio, the impact will likely be neutral or temporarily positive. Understanding how credit card overpayment happens can help you know how to respond when it happens and avoid it in the future. The first thing to do is to reach out to the card issuer’s customer support line. Explain the situation to them and tell them that you simply made a mistake when paying your credit card bill. Be sure to answer any questions that they have accurately and in full.