Negative available credit means you have used up your entire credit line and then continued to borrow more.
Typically, when people have their limits lowered it's because they were running a balance for too long. Usually paying before the statement posts hurts your chance at higher credit limits, but it doesn't get them lowered. But it's not unheard of.
By law, the decision to restore available credit is up to the issuer, so even if you paid your bill on time, the issuer may delay replenishing your credit limit. Each credit card issuer has the authority to determine when an account's available credit will be replenished after the balance is paid.
When you choose the Express Payment option and pay with a debit/ATM card, your available credit will increase the next day for payments made by 2:00 p.m. (Pacific Time) Sunday - Friday. Your available credit will increase within 2 days for payments made by 2:00 p.m. Saturday.
A credit card or other type of loan known as open-end credit, adjusts the available credit within your credit limit when you make payment on your account. However, the decision of when to replenish the available credit is up to the bank and, in some circumstances, a bank may delay replenishing a credit line.
After you make a payment, your available credit may increase immediately or it could take up to seven business days. The exact time it takes a payment to post and reflect in your available credit depends on your payment method, the timing of the payment and your card issuer's policies.
Check deposits: When you deposit a check into your account, some or all of the funds from the check might not be incorporated into your available balance until the check clears — which usually takes about two business days.
Typically, you'll be able to use the funds one to two (1-2) business days after you make your payment. If your funds aren't available as expected, please call us and we'll review your account. We can be reached at the number on the back of your card, or at 800-285-8585.
Even if you pay off your balance by the due date, it might take a few days before that credit is available again. There could also be a problem with your payment. If you're waiting longer than expected, consider contacting your issuer.
Credit cards operate on a revolving credit system, which means that as you pay off your balance, your credit limit becomes available again for future purchases. So, if you have a credit limit of $5,000 and a balance of $2,000, you still have $3,000 available for new purchases even after the due date has passed.
A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.
You're STILL making purchases on your credit card.
While you're paying off your debt and possibly paying more than the minimum, you're also accruing more debt because you continue to make purchases you cannot afford on your credit card.
If you receive a refund for a returned purchase after you've paid off your balance, it will show as a negative balance on your account. This means the issuer owes you that amount and it can be applied to a future purchase or purchases.
The available balance for your account may differ from the current balance because of pending transactions that have been presented against the account, but have not yet been processed. Once processed, the transactions are reflected in the current balance and show in the account history.
If you have paid your card down to a zero balance before receiving your refund, you will have a negative balance on your credit account — and any future purchases will be applied to the negative balance first.
Payments made by 2:00pm (Pacific Time) Sunday through Friday will post that same day, displaying online the following business day.
If Credit One receives your payment after 5 p.m. PT Saturday through Thursday: The payment will post and display online the next business day. If Credit One receives your payment after 5 p.m. Friday and before 2 p.m. PT Saturday: The payment will post on Sunday and be backdated to Saturday.
If you work to improve your credit for at least six months, it's possible you could qualify for an automatic credit limit increase or get one if you ask again.
If you've made recent purchases with your debit card, but the financial institution hasn't fully processed the transaction, the current balance will be higher than the available balance. This is also the case if you have written a check that has not yet cleared.
Most credit card payments are processed one or two days after receiving them, depending on whether you write a check or use an automatic debit from your bank account. Automatic debits are processed quickly because the bank does not have to wait for the check to clear your account.
Once you have paid off your credit card balance in full, you can typically use your credit card immediately.
If your available credit is negative, you've maxed out your card and then some. There is no money available to you. You owe them. This is very possible, especially if you're only making the minimum payment. If your statement balance was negative, then you would have overpaid them and they would send you a refund check.
At the beginning they will hold your payments for 4-7 days before it reflects in your available credit. After a few payments the funds will be available after 1-2 days. After a credit limit increase if your payment amounts increase they will extend the time for available credit to update once again.
You can use your cards more frequently once you have your debt paid off and know how to avoid new debt. As long as you pay your balance in full and on time each month, you can use credit cards for rewards to your advantage.