How do credit card refunds work/show on your credit report?

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How do credit card refunds work/show on your credit report?

Postby AceH » Sun May 01, 2011 5:37 pm

When using my credit card I do not like to charge more than 30% of my limit. I recently made a purchase that I will have to retrun and recieve a credit back to my credit card. Once the return credit is posted, I will need to make another purchase.

QUESTION: When my monthly report to the Credit Bureaus are sent in by my Credit Card issuer, will it show the correct amount used for that period or will it show the original charge (which was refunded) PLUS the new charge which will make my purchases for that period high (but not over my limit)?

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon May 02, 2011 3:59 pm

How it works with credit card refunds is that as long as they were processed and reflected on your account before your statement closing date, then they will not affect the balance of your card.

Say you made a $500 purchase and then returned it a week later. Aside from that you had $1,000 in purchases. As long as that $500 refund is processed before the statement closes (usually is reflected 2-3 days after the return) then the balance on your statement will only be the $1,000 and that is what will get reported to the credit bureaus.

Hope this helps.
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