What Happens if I Overpay my Credit Card? | Chase (2024)

FAQs

What Happens if I Overpay my Credit Card? | Chase? ›

You can handle an overpaid credit card statement easily. The simplest method is to let the negative balance roll over to your next statement. That overpayment will subtract from your new charges, resulting in a lower statement balance.

You won't be penalized for overpaying your credit card, but there are also no benefits for doing so. When you pay more than the balance due, your issuer should automatically issue the amount you're owed as a statement credit and your credit line will reflect a negative balance until you've spent the credit.

It can be annoying to accidentally overpay a credit card bill, but it won't affect your credit. And the credit card issuer is required to return the overpayment, so you won't be out the money, either.

A positive balance on your credit card, also called a credit balance, is an overpayment or refund on your card. It's an amount that belongs to you, so it's the opposite of an amount you owe. Your next purchases will simply be deducted from the positive balance until your balance drops to $0.

If you have paid your card down to a zero balance before receiving your refund, you will have a negative balance on your credit account — and any future purchases will be applied to the negative balance first.

That overpayment will subtract from your new charges, resulting in a lower statement balance. If you'd rather have the money back now, you can contact your card company and ask for a refund.

An overpayment will not help boost your credit limit, not even temporarily. Your credit limit remains the same – you'll just have a negative balance that will be applied toward your next statement. Details like credit score and income are usually factored into a credit limit increase.

Yes, your bank can do that for you. It may increase the credit limit of your existing card if you make a request. This, of course, will depend on various factors, like your credit history, credit score and income.

If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt. Plus, using more than 30% of your credit line is likely to have a negative effect on your credit scores.

Can I put extra money on my credit card? Yes, you can, and usually, this will show up as a “CR” next to the balance on your credit card statement. If you're thinking about doing this though, it's really worth asking yourself why first.

What happens if I put extra money on my credit card? ›

In most cases, an overpayment on your credit card isn't likely to cause any problems. However, if it results in a significant negative balance, you could trigger a fraud alert. A large negative balance can sometimes be a sign that someone is laundering money.

Request a deposit: Check with your credit card issuer to see if you can request the negative balance amount to be deposited to your bank account. You can also ask for a check, money order or cash. Make a purchase: This is the easiest way to resolve a negative balance.

Going over your credit limit usually does not immediately impact your credit, particularly if you pay down your balance to keep the account in good standing. However, an account that remains over its limit for a period of time could be declared delinquent, and the issuer could close the account.

Whether you've made too large a payment or had a refund come through for a recent return, an overpayment results in a negative balance on your credit card. Suddenly, your credit card issuer owes you money instead of the other way around.

If you've overpaid by a small amount, there's no need to fret. You can use the balance towards your next month's spending. However, if the credit remains untouched for six months, your credit card company is legally required to make an effort to return that money to you.

Consistently paying off your credit card on time every month is one step toward improving your credit scores. However, credit scores are calculated at different times, so if your score is calculated on a day you have a high balance, this could affect your score even if you pay off the balance in full the next day.