What happens if you overpay a CC?

[Anonymous]

If I set up autobanking or autopay to make sure I am paying my CCs on statement date, what happens if I overpay, or say pay off to $0 balance and then pay the next month (forgetting to turn off autopay)? Does my avail credit go up? do they refund? is it applied to new charges?

just trying to figure out a way when i get new cards to set up some auto system so i ALWAYS pay on statement date and NEVER am late and NEVER reporting a balance I DID pay.

[Anonymous]

In my experience-

The will post a balance on you account- (thus increasing your availible credit) this will be the first to go when a debit is placed on the account, 

They will not refund the overpayment until you call and ask them too.

[Anonymous]

It will report as a credit to your account if you overpay.

[Anonymous]

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landocalrissian wrote:

It will report as a credit to your account if you overpay.

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"Report" only in the sense that you will have a credit balance on your statement.

As far as CRA reporting, a credit balance usually reports as $0.

[Anonymous]

Well as long as it is disappearing, i.e. I don't lose the $ and it doesn't hurt the tradeline.

[Anonymous]

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Timothy wrote:

In my experience-

The will post a balance on you account- (thus increasing your availible credit) this will be the first to go when a debit is placed on the account, 

They will not refund the overpayment until you call and ask them too.

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Just to clarify, a lot of companies will send you a refund check after a few months of consistently having a credit balance on the account.

For instance, Amex's policy is to send a check after credit balance exists for three months.

The chances of most people having a credit balance for that long are slim to none although, surprisingly, there are a few people that prepay their accounts on a regular basis because they're afraid of finance charges or a bill they can't afford.  And they'll continually use it like a checking account.  Baffles me everytime I see it.

[Anonymous]

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@Anonymous wrote:
Well as long as it is disappearing, i.e. I don't lose the $ and it doesn't hurt the tradeline.

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You won't lose the money and it shouldn't hurt your TL. Some sites, like Sears MC has a link in the account web pages to, "send check for credit." I did that recently and got my credit back faster than I get my rewards check for my BP Visa.

[score_building]

"so i ALWAYS pay on statement date ..." 

if you want your payments to be reflected on your cr as soon as possible you're better off setting it up for several days B4 the statement end date -otherwise i don't think it will reflect on your cr until the next month... :

[Anonymous]

So is the statement date different then the billing period? Couldn't you just set your payment to the end of Billing Period?

[marty56]

I have 4 cards that are all overpaid.  They CL is the same it just shows a negative balance.  Most companies will send you a refund after 3 months if the card is not used.