 TITLE: How Do Credit Card Refunds Work? CONTENT: What Happens if I Have a Negative Balance After a Refund?\n---------------------------------------------------------\nIt's possible to have a negative balance on your credit card after you've received a refund—but despite the terminology, there's nothing negative about this. Having a negative balance just means you don't owe the card issuer any money, and that's always a good thing. Next time you make a purchase using the card, the negative balance will be applied to your purchase.\nIn itself, having a negative account balance will not affect your credit score. Because it doesn't affect your payment history, a negative balance is not reported to the major credit bureaus and doesn't show up on your credit report. However, a negative account balance might affect your credit score in a positive way if it helps reduce your credit utilization ratio.\nWhat if you have a really big negative balance? For example, suppose you normally spend $50 a month on a credit card, but one day you use it to buy a $2,000 sofa that you decide to return. Using up the $2,000 credit from the return could take a long time if you don't normally spend much on that card. If you'd rather have the cash in hand, you can ask the credit card company to issue a refund via check, direct deposit or money order. Under federal law, the credit card issuer is required to honor this request; however, some companies will ask you to make the request in writing. END