I have a credit card with a credit line of $400. I have the whole $400 available to spend right now. I received a refund of $400 from a company. That makes my total available balance go up to $800.
So I have $800 available to spend on a credit card that has $400 credit limit.
Here is my question:
If I were to spend $400 on my credit card, do I owe that money back? Here is why I think this: If I were to spend say $400 on this credit card, my available balance goes down to $400 and my credit limit is still $400. So I technically have not used up any of my credit.
Does that make sense? Or am I just being really dull right now?