Question about credit cards and returns.

[slickkill77]

I didn't know the right way to google this so I figured someone on here would know what I'm asking.

I have a $500 credit limit that currently has a $0 balance (I always pay it off right away). If I get a refund on an item that I paid for with my credit card then that would technically make my credit line temporarily higher, correct?

$500 (credit) +
$70 (returned item)
______________________
$570 (credit limit)?

Does that affect me in anyway or can it just sit like that until I use the money that I got refunded? Sorry if that's confusing or a stupid question but I'm not a pro with how credit cards work.

 

[brewtownska]

Your explanation seems right. I've had a few months in the past where my statement came and showed I owed a NEGATIVE amount. I also remember one company where I kept a negative balance for a few months, so they eventually cut me a check to bring it back to zero. How it gets handled will vary on company, but if you plan to spend money soon, you can think of it the way you did...your overall credit limit is temporarily higher.

 

[mtxbass1]

For me personally, in the past, it's always shown up as a negative balance. You usually have to request a refund check.

 

[Chronis]

Yes, overall your limit will be higher. So you can either use it, or have them send you a check for the difference.

 

[shrike4242]

It'll show up as a negative balance, yes. Any charges will be done against that negative balance until used up.

 

[slickkill77]

Thanks guys