Negative Balance On Credit Card?
Credit cards are one of the method to utilize borrowed money from the bank.None of the credit card user never want to see negative balance in their account might because it can affect user credit score. But what happen when it starts showing a negative balance in your account?
The credit card balance shows the amount of purchase you have made during billing cycle. And it also represents the desired interest charged on the amount you have utilized. If you make the payment for each billing cycle promptly. Then your credit card balance will show a zero balance, which is excellent for you and your credit score. But when you do not pay for the used money and interest charged. Then you will have to pay additional interest as well, and also your account will show a negative balance due to refund payment or cashback payment.
Lets understand with the help of example why Credit Card showing Negative Balance Mr.A purchased a branded mobile for Rs. 25000 but he noticed that he received the product in damaged condition so he returned the product to company and asked for refund. In that case credit card can show you a negative balance of Rs -25000 some times also cash back received by you in statements leads to show negative balance on credit card
How to tackle, if credit card showing Negative Balance?
It can be common problem that any credit card user can face to tackle such kind of situations consult the credit card issuer to get possible solutions else you can ask the card issuer to deposit the same balance into the bank account.
Conclusion:
Hope you understand that why credit card showing Negative balance and reason for that and how to tackle in such kind of situations.The main mantra for using credit card is make the payment for each billing cycle promptly. Then your credit card balance will show a zero that will helps to boost your credit score.
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