Credit Cards with a Positive Balance on Mobile

Need an overview of credit cards?

If you're just getting going with your credit cards in YNAB, check out Credit Cards: The Basics first! 

We’ve all done it—paid more on our credit card than we owe (usually by mistake) or received a credit after the card has been paid off. But, how does it impact your budget when a credit card ends up with a positive balance?

The important thing to remember is this: a credit card with a positive balance acts just like a checking account in YNAB. The positive balance is added to your Ready to Assign amount and you can assign it to various categories.

There is a positive balance of $100 in the credit card account. There is $100 available in Ready to Assign.

But before you do anything, take a look at your Credit Card Payment category. Is the Payment column red? If so, that’s because your payment was more than your budget had set aside to pay. Assign some of that newly discovered money to your Credit Card Payment category to bring the Payment amount back to zero.

There is $100 of cash overspending in the Credit Card Payment category and $100 available in Ready to Assign.

Once you've done that, assign any extra  Ready to Assign money to other categories!

Because this account is now behaving like a cash account, when you make a purchase on a card with a positive balance, no money will move to the Credit Card Payment category. That’s because YNAB is smart enough to know you don’t have to pay back that spending on the card.

Once the balance is negative, YNAB will start moving money for budgeted purchases to the Credit Card Payment category.

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