Negative balance on a credit card - Can you get charged interest ?

solidsnakeuk

Ok this is the scenario and I was wondering what happens in this situation.

If my credit card balance is -£150. (Negative £150) .
For example my balance was 0 but then I get sent a £150 refund so I now have -£150.

If I go to an ATM and use my credit card to withdraw £100.

Will my balance then be -£50?

Will I be charged any extra fees or interest.

I don't understand if I can get charged interest on a negative credit card balance?

Thanks

chanz4

some do some dont

solidsnakeuk

Yeah but when you get charged interest you continue to get charged interest till you pay off the amount you owe them
Thats correct yes ?

So if your balance is negative how can you get charged interest, as you don't owe them anything, so theres nothing to pay off.

londoner1998

Give them a call- this happened to me by accident this month and gave them a call straight away - no problem at all- they transferred the money straight away into my current account- but it helps that I want with them too...

dshart

I do not believe you will incur interest charges but you will probably have cash advance fees

jonesMUFCforever

Most credit cards have a 3% fee cash advance fee on withdrawals whether in credit or not.
Better IMO to ask them to refund any credit balance to you either direct to your account or ask for a cheque.

Fruit_and_Nut_Case

dshart wrote: »

I do not believe you will incur interest charges but you will probably have cash advance fees

I believe this is the correct answer.

Ben8282

solidsnakeuk wrote: »

Ok this is the scenario and I was wondering what happens in this situation.

If my credit card balance is -£150. (Negative £150) .
For example my balance was 0 but then I get sent a £150 refund so I now have -£150.

If I go to an ATM and use my credit card to withdraw £100.

Will my balance then be -£50?

Will I be charged any extra fees or interest.

I don't understand if I can get charged interest on a negative credit card balance?

Thanks

Assuming cash advance fee is 3%, your balance will be £-47 (i.e. £47 in credit). You cannot be charged interest as account is in credit and therefore nothing to pay.

Budner

I have a PO card, they don't charge cash advance on credit balances (how can a bank "advance" you your own money?) They also don't cahrge interest as again it's your money. i.e. not owed

jonesMUFCforever

Budner wrote: »

I have a PO card, they don't charge cash advance on credit balances (how can a bank "advance" you your own money?) They also don't cahrge interest as again it's your money. i.e. not owed

In that case any purchase you make using your money is not covered under s 75 of the CCA - to get this cover you need to make use of credit! Credit cards are not meant to be used with positive balances.