if you pay of a credit card, and then get a refund, what happens?

Question

So I have a credit card with a fairly high APR with a $200 balance on it. If I pay it off completely, and then end up getting that money refunded to me, what happens to my account? does it make my limit higher? would it say I have a negative balance? will it just go back to whoever gave me the refund?

I want to pay it off, but I dont want to lose the money if it gets refunded to me... what would happen?

Answer 1

You do not lose the money. Your balance would be negative (although it would continue to be reported to credit bureaus as zero, because they care only about what you owe, not about what is owed to you). You could then charge some stuff, up to the amount of the refund and not have to pay any money. I once (by mistake) made more than the balance on a card and was able to charge things for months without sending any payments.

Answer 2

It will not increase your limit, but you will have twice as much available credit due to your credit balance of Two hundred. Go ahead and use it up or request a refund check, as if you don't it could take up to ninety days for them to send it to you without you requesting it. You could just get a cash advance for the credit balance at your bank. It will not go back to the entity that gave you the refund, because that would wipe the credit out, it goes back to your card issuer, and is yours to get out or let ride, or whatever. It also may be a good time to request an increase in the card balance as you never want to use more than about a third of your total credit line, and certainly never more that just under fifty percent; because by doing this you will get the best credit scoring on that account.

Answer 3

Generally, a refund will be applied to the balance on your credit card account. If the balance is zero, you will have a credit of the $200. and you will now have $400. to spend. It will not automatically increase your line of credit with the card issuer. If you don't use the card within sixty days, the credit card company will refund the credit balance to you and you will still have the original line of credit. That would be a good time to request an increase in your line of credit with them. The card company will not automatically send you the refund as law gives the ability to keep it for up to sixty days and in some states longer, but eventually, it will be refunded. You could also request a cash advance against it and you shouldn't have a problem getting that which would be much faster.

Answer 4

You'll end up with a negative balance on your statement (a 'credit'). If that negative balance lasts for more than 30, 60, 90 days (depending on your credit-card company), then they will issue you a check.

OR, you can spend the money by buying more stuff.

The bad thing about it: while they charge you an arm-and-a-leg for interest, they (usually) don't pay you interest when you hold a negative balance, or when they do pay interest it isn't anywhere near what they charge.

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Answer 5

Pay it off will just show as a negative balance on your card so if your limit is $1000 and you get a $200 refund in reality you have $1200 limit. but only until you negative balance is used then back to $1000

Answer 6

You won't lose the money. It will post as a credit to your account (a negative balance). You can call and have it refunded to you.

Answer 7

They sent you to a collections enterprise. They offered your account from HSBC reason you weren't paying them. the sequence enterprise will artwork with you to sparkling this debt previously they placed it on your credit record. attempt to artwork some thing out with them in case you dont tehy will placed it against your credit so once you prefer to circulate purchase a house or automobile it is going to teach which you at the instant are not answerable for funds. and are a danger. additionally in case you dont pay they'd sometimes take you to court docket and sue to ganish your wages to make particular you do pay. I owe a scientific invoice that i'm not paying clarification for malpractice (i cant have the money for a criminal expert to sue so I wont pay) the sequence branch nonetheless call ever week and its been a 365 days happening 2. they threaten to garnish my wages yet as quickly as I develop the actuality that they gave me lorrie tabs somewhat of looking out what replaced into incorrect and that i had a possible misscarrige they close up and circulate away me by myself for a month. Its extra clever to pay and be carried out then to combat.

Answer 8

You receive a credit for the refunded amount. If you don't us the credit card, then after about 60-90 days, they mail you a check back for that amount.

Answer 9

usually, you get the refund whatever way you make the purchase. such as, if it was purchased on a credit card, it will usually go back on the card. certain times you may receive a cash refund, if thats the case, your credit card company will still charge you for the purchase, but you will have the cash in your pocket.

Answer 10

You will get a credit on your account if you get a refund put onto your card.