Why did the credit card limit go negative? Does it affect cr

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Why did the credit card limit go negative? Does it affect credit information?

Some time ago, a friend of the card suddenly found that his credit card amount became negative, the debt must be paid in a lump sum, if the bank controlled him, he would worry a little. Does it affect credit? In fact, negative credit CARDS are very common, and there's more than one reason for negative Numbers. For example, the following three situations will result in negative Numbers.

1. Temporary fee

If it is a credit card with a temporary limit, the total amount shown is a fixed amount plus a temporary limit. In the case of non-recurrent expenses, but no advance payment has been made, the total amount will be negative. In addition, temporary expenses must be paid in a lump sum. Fees and minimum refunds are not available. After payment, the fee display will return to normal.

2, use beyond the limit

Some credit CARDS have an overflow limit of 10%, which means that the total amount of credit CARDS you can use is actually 110%, and the extra 10% will show up negative.

While 10 percent more than the amount seems like a good thing, it is not recommended to use it often because it is not used during the interest-free period and the percentage above the limit is high. Frequent credit CARDS that exceed the limit can also make the bank feel insecure and doubt your ability to pay, so you can use up to 70% of the total credit card amount.

3. Pay

If you have more money on your credit card, or if you have more money on your reimbursement, the credit card overpayment will also show negative. In this case, it can be used as long as it costs too much. If the amount is large, you can go to the counter to withdraw cash, because at some Banks' atms cash is withdrawn for overpayment and withdrawal fees.

There is also a sudden drop in credit CARDS, after which the amount is less than the amount that has been used, will appear as a negative number, and will return to normal after reimbursement. Negative credit CARDS have no effect on credit CARDS, but if it is due to overpayment, it must be handled promptly, otherwise it will damage the credit card.