Credit on my Credit CardBalance on my credit card
If you pay too much for your credit card, what happens?
is that you overpayed your prior account balances. The overpayment of a prior account simply covers the whole amount due - i.e. the whole amount inclusive of the last closing + ongoing operations. It is always advisable to remain at around 25% of credit utilisation, so overpayment can sometimes be tactical.
Although I only have $300 to go, I am paying $700 ($400 more) as this would lead me back to a 20% credit burn compared to 60% if I had just been paying the amount due. Depending...do you mean "overpay" as in "pay more than the due balance" or as in "pay more than the specified minimal amount on the invoice"?
When you " are paying more than the amount due", your bank will have a credit in the amount of the amount you paid in excess, which will then be available. Sometimes, some businesses will truncate a cheque for the credit if it is greater than a certain percent of your credit line.
However, the credit card companies will not charge you any interest on the funds, so this is a really poor way to make savings. This will be displayed as overpayment / credit on your bankroll.
If you want to get the card back or you want to reverse it, this is a long time. Even with surplus balances, it is not necessary to enhance your credit rating. Not much, you will let the "credit" be used for your next purchase. Take an example - your dec invoice was $1,000 and you accidentally payed $1,200.
That means you've already spent the next $200 on groceries. A " bank account credit " will be issued, which you can use for your next invoice. Unless you have a next invoice, the credit card issuer will mail you a cheque upon your inquire. It is important to remember that you cannot "hack" your creditworthiness, a favorable credit rating is equivalent to a utilisation of 0%.
Once I had a credit balance without noticing that there was an excess payment on the card. They sent me a cheque for the amount paid out a few month later.