Can credit card limit go in negative?

Okay, so you’re wondering if your credit card limit can, like, go into the negative? That’s a good question, and honestly, I’ve wondered about that myself!

The short answer is no, your credit limit itself can’t actually be negative. Think of it like this: your credit limit is the maximum amount they’ll let you borrow, right?

But, here’s the thing, and this is where it gets a little confusing: you can have a negative balance on your credit card. How does that happen, you ask? Well, picture this: I once accidentally overpaid my credit card bill by like, a hundred bucks! I was so frazzled that month. Or maybe you returned something you bought with your credit card, and they issued a refund. Or sometimes, you get statement credits for various things, like rewards points.

When any of that stuff happens, you end up with a negative balance. Basically, the credit card company owes you money! Pretty cool, huh? So, does that mean you can now spend more than your credit limit? Nope! Sadly, the negative balance doesn’t actually increase your spending limit. It just means they owe you that amount.

What can you do with a negative balance? Well, you’ve got a couple of options. You can just use your credit card as usual, and the negative balance will automatically get applied to your next purchase. Or, if you’d rather have the cash back, you can actually contact your credit card issuer and ask them for a refund. They’ll usually send you a check or credit the money back to your bank account. It’s like free money, almost!

So, yeah, no negative credit limits, but definitely possible (and sometimes kinda nice!) to have a negative balance. Hope that clears things up!