What does it mean when your credit card is in credit?
Written by
Emily Tye
Reviewed by
Amy LancashireYour credit card is in credit when more money has gone onto the account than you owe, usually from an overpayment or a refund. Your card provider owes you the difference. It shows as a minus figure, such as -£40.00, or with 'CR' next to your balance, depending on your provider.
The money isn't lost. You can leave it to cover your next purchases or ask your provider to send it to your bank account.
How does my credit card end up in credit?
It's usually one of these:
You paid more than your balance, for example by rounding up a payment
You made a manual payment and your direct debit was taken as well
A retailer refunded something after you'd already paid off your balance
A Section 75 claim or chargeback claim went your way
Your credit card cashback was paid when you owed nothing
Your provider reversed a fee or charge after you'd paid
If you pay your credit card by direct debit, an extra payment made close to the due date may not stop the direct debit going out too, so check your provider's cut-off before paying extra yourself.
How can I tell if my credit card is in credit?
Your credit card balance normally shows what you owe. When you're in credit, the amount shows as a minus figure or has 'CR' after it. Some providers label it 'credit balance' instead.
Don't confuse this with CR next to individual transactions. That just means money came into your account, such as a payment or a refund. It's CR next to your overall balance that tells you you're in credit.
Our guide to reading your credit card statement explains the other labels you'll see.
If you're in credit when your statement is produced, you have nothing to pay that month, so your payment due will usually show as £0.
What happens if I overpay my credit card?
You don't lose the money. It stays on your account and your next purchases use it up first, so you won't owe anything until your spending goes past the amount in credit. Some providers may send it back to your bank account instead.
Say you'd cleared your balance and then got a £120 refund, putting you £120 in credit:
You spend £45 on groceries, so you're now £75 in credit
You then spend £100 on a train ticket, so you now owe £25
Overpaying isn't the same as paying more than your minimum payment. Paying above the minimum reduces what you owe and can cut the interest you pay. Overpaying means paying more than your whole balance, which doesn't save you anything.
How do I get my money back?
If you'd rather have the money in your bank account, ask your provider to refund your credit balance:
Check for pending transactions. Purchases that haven't gone through yet will use up some of the credit, so wait until they've cleared if you can
Contact your provider. Many let you request a refund in their app or online banking, or you can call them
Confirm where it's going. Providers usually send it to a UK bank account in your name
Wait for the transfer. This often takes a few working days, and it can take longer if your provider runs extra security checks first
Only ask for a refund through your provider's app, website or the phone number on your card. If someone contacts you out of the blue offering to help you claim a credit balance, treat it as a possible scam. Here are the signs of a scam to look out for.
Can I spend more than my credit limit if my card is in credit?
Don't count on it. Some card agreements say you shouldn't pay more than you owe, and let the provider refuse the payment or send the money back to you. That makes overpaying an unreliable way to make room for a big purchase.
If you need more room, ask your provider about raising your credit limit instead, and only if you're confident you can repay what you spend.
Does being in credit affect my credit score?
Being in credit means you owe nothing on the card and aren't using any of your credit limit, which keeps your credit utilisation low. Low credit utilisation can help your credit score.
Being in credit also isn't a missed payment or a default, which are the kinds of things that harm a credit score.
You don't need to overpay to get this benefit, though. Paying your balance off in full already means you owe nothing.
Should I keep my credit card in credit?
A small credit balance is fine to leave if you'll use the card soon. It'll simply cover your next few purchases.
For larger amounts, a refund usually makes more sense. The money may not earn anything on your card, and it's tied up until you spend it or ask for it back.
If you want a buffer, a current account or savings account is a better place for it.
FAQs
Can I withdraw cash from a credit balance?
You can, but asking for a refund is usually the cheaper option. Taking cash out with a credit card counts as a cash transaction, which can mean a fee and interest from the day you withdraw, depending on your provider. Read more about withdrawing cash on a credit card.
What happens to a credit balance if I close my card?
The money is still yours, so you can ask for it back. It's simplest to request a refund before you close the account, as getting money out of a closed account can involve extra checks. Our guide to cancelling a credit card covers the rest of the process.
Can I move a credit balance to another credit card?
Not with a balance transfer. Balance transfers move debt from one card to another, and a credit balance is money your provider owes you. To use it elsewhere, ask for a refund to your bank account and pay it towards your other card from there.
Is a credit balance the same as available credit?
No. Your available credit is how much of your limit you have left to spend. A credit balance is money on your account beyond what you owe, which your provider owes back to you.
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
