Several situations and consequences of negative credit card limit:
1. Temporary limit expires
In case of temporary credit card limit, the displayed total amount = fixed limit+temporary limit. If a temporary quota is used, but it expires before it is paid off, the total amount will become negative.
since the temporary quota needs to be paid off in one lump sum, installment and minimum repayment cannot be handled, the quota display will return to normal after the temporary quota is paid off.
2. Overused credit limit
If the cardholder has used up the credit limit when using the credit card, and has overdrawn the credit limit, the cardholder's credit card limit will also be displayed as a negative number before repayment.
In addition, some credit cards still have a 1% limit, that is, the credit card limit you can always use is actually 11%, so the extra 1% will be displayed as a negative number. It should be noted that the over-limit amount does not enjoy the interest-free period, and there is a high over-limit fee. Frequent over-limit swiping will also make the bank's risk control more sensitive, although it is generally not recommended to over-limit swiping.
3. Overpayment
If the cardholder deposits money into the credit card, or the repayment amount exceeds the consumption limit, there will be credit card overpayment, and this amount will also be displayed as a negative number. After using the credit card, the overpayment is also deducted first. In this case, it is only necessary to spend the extra amount by swiping the card, and then deduct the amount of the card.
4. Reduced amount
means that the credit card is suddenly reduced, and the reduced amount is lower than the consumed amount, which will also be displayed in a negative form, and will return to normal after repayment.
v. Minimum repayment penalty interest or overdue fee
The interest on the minimum repayment is called "full penalty interest". Some cardholders have used the minimum repayment function. If the card has been maxed out and a penalty interest is generated, the available amount will be displayed as a negative number when the next bill is billed at sunrise.
in addition, if the cardholder's fixed credit line has been used up, and it is overdue due to the failure to repay in time, the overdue fees, penalty interest and other expenses will occupy the credit line, thus causing the cardholder's credit card line to be negative.
what are the consequences of a negative credit card limit?
generally speaking, a negative credit card limit will not have any adverse consequences, as long as it is repaid as soon as possible. However, if the credit card is used beyond the limit, an over-limit fee will be paid.
if the credit card limit is negative, will the credit be collected at the meeting?
the negative credit card limit is not directly related to credit reporting, so it is generally not used for credit reporting. However, if the repayment is overdue, it will be reported to the credit bureau.