What happens when you have a negative balance?
If the account has a negative balance – you have spent more money than you have.
1) the bank will allow payment for transaction to go through and then charge you an overdraft or insufficient fund fee.
Therefore you will owe the bank the amount of transaction plus the fee-resulting in a negative balance.
What does a negative balance mean on a bill?
A negative balance indicates that your bill was overpaid and that you may be eligible for a refund. You may only receive your refund after the semester starts and your anticipated credits are disbursed to your student account.
What is a negative available balance?
If I understand your question correctly, a negative AVAILABLE balance means you have exceeded the credit limit of your credit card. On the other hand, a negative balance means you have over paid on the total credit debt and they actually owe you a refund.
Does a negative balance affect your credit?
Fortunately, bank overdrafts won’t affect your credit score as long as you resolve them within a timely manner. However, if you never take care of the negative overdraft balance, your outstanding balance may be sent to a collection agency for further action.