Negative Balances on Credit Cards

YeOldHinnerk HRamthun at gmx.de
Fri Feb 27 06:22:22 EST 2015


Yes, that is the first question. And the other one: Which acutally is
correct, positive or negative balance. That is, I sometime pay in money in
my credit card to extend the cards limit when I'm about to spend a large
amount. In that case, a credit card modelled as liab should show a negative
sign. If you modelled the credit card as an asset, it's the other way round.

My understanding is, that most people model credit cards as asset. I do it
the other way round, which to me anyway seems more plausibel: I spend money
that I owe to the bank. It is clearly a liability. But I guess if you keep
having money in your credit card, you may see this differently.

Best,

YeOldHinnerk



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