What happens if I overpay my credit card?

For example, if your credit card balance is £200 but you pay £300, your card will show a credit (negative) balance of -£100. That £100 is your money sitting on the account. 

Can I spend a credit balance on my credit card? 

Yes, you can use your credit balance towards future spending. It works a bit like having a prepaid amount on your card: 

Will overpaying improve my credit score? 

No, overpaying your credit card won’t improve your credit score. Paying on time and keeping your balance low compared to your credit limit are what really help your score. 

However, overpaying by accident doesn’t harm your credit score either. 

Are there any risks to overpaying my credit card? 

Overpaying your credit card isn’t usually dangerous, but it can come with some downsides: 

Can I get my money back if I overpay? 

Yes, you have the right to ask your credit card provider to refund any credit balance. Here’s what to do: 

How to get a refund for an overpayment 

• Contact your credit card company directly (by phone or online).
• Tell them you’d like a refund of the overpaid amount.
• They’ll usually refund it to your bank account, but some may send a cheque instead.
• Refunds can take a few days to process, so check with your lender for exact timings. 

How can I avoid overpaying in future? 

Here are some tips to help you avoid accidentally overpaying your credit card: 

• Check your statement carefully before making a payment.
• Set up a Direct Debit for the full balance or minimum payment so you don’t pay twice.
• Use your card provider’s app to keep track of your real-time balance.
• Wait for your statement before paying, so you know the exact amount due. 

Overpaying isn’t a problem – and here’s what to do 

Overpaying your credit card isn’t a problem, but it can tie up your money unnecessarily. If you do overpay, you can either use the credit balance on future purchases or ask for a refund. Always check your statements and balance to stay in control of your finances.