Overpaying a credit card

I recently got a refund from a medical bill that I paid through my credit card. Prior to the refund, I had a balance of $0 since I made all my payments. However, I now have about $300 of credit on my account because of the refund. Is there any harm in what looks like an overpayment of a credit card? I heard one time from a friend that you shouldn't overpay a credit card, but this was out of my control since it was a refund from a bill.

Is it safe to just leave the credit there until I spend the money?

Jam it back in, in the dark.

It is safe to leave it there.

Thank you for using Citibank Customer Service.

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No harm in having a debit balance on your credit card. I overpay by 1 cent every month, and underpay by 1 cent the following month for lols and giggles.

This thing is sticky, and I don't like it. I don't appreciate it.

You hopefully have made sure that your credit card doesn't do this, but some have terms where if you don't pay the full balance of the credit card, then the interest that you are charged is for the full amount of the previous balance. So if your bill is $1000 and you pay $999, your next bill will be $1 + interest on $1000 + new charges.

Not all credit cards do that, of course.

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I always pay the balance though. So the previous balance is always $0.01 or ($0.01) Minimum payment is $50 anyway.

How ya doing, buddy?

I suppose it might help build your credit score faster if you don't overpay, or something, but it shouldn't do you any harm.

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I don't think it wise to overpay by $300. You can easily use that money for something else (like sitting in the bank). But if it's a refund, it can't be helped.

FELIPE NO

This happened to me once when I paid the balance online, but I mom sent a check for the same amount.

My room-mate says that it's bad to do that, but I really don't understand why; I mean, isn't it better to have some money over than being in the red? My credit is pretty good right now, so I don't think it affected it...

What, you don't want my bikini-clad body?

The way to improve your credit is to borrow lots and never miss payments. Since there's a credit on the account now, there's nothing being borrowed, so your credit doesn't improve (it doesn't go down, at any rate, either).

Jam it back in, in the dark.

My advice is that anything that seems odd or not right with anything concerning your bank; get it sorted immediatley.
I just recieved a £30 charge for being 7p overdrawn. Makes sense.

There's nowhere I can't reach.

Originally Posted by BlueMikey

The way to improve your credit is to borrow lots and never miss payments. Since there's a credit on the account now, there's nothing being borrowed, so your credit doesn't improve (it doesn't go down, at any rate, either).

Oh, that makes sense, thanks~

(When my roommate kinda-sorta explained it, she made it sound as if it were bad to leave a negative amount on your credit card.)

If it doesn't negatively affect you, I would just leave that amount there; that way, you have a bit more money than expected if an emergency happens.

This thing is sticky, and I don't like it. I don't appreciate it.

Well it's bad in the sense that you're giving the credit card company an interest free loan. You'll be better off spending it or leaving it in a bank.

I am a dolphin, do you want me on your body?