diff --git a/app/models/simplefin_account/processor.rb b/app/models/simplefin_account/processor.rb
index 569f515cd..37d211673 100644
--- a/app/models/simplefin_account/processor.rb
+++ b/app/models/simplefin_account/processor.rb
@@ -46,7 +46,9 @@ class SimplefinAccount::Processor
       avail = to_decimal(simplefin_account.available_balance)
 
       # Choose an observed value prioritizing posted balance first
-      observed = bal.nonzero? ? bal : avail
+      # Use available_balance only when current_balance is truly missing (nil),
+      # not when it's explicitly zero (e.g., dormant credit card with no debt)
+      observed = simplefin_account.current_balance.nil? ? avail : bal
 
       # Determine if this should be treated as a liability for normalization
       is_linked_liability = [ "CreditCard", "Loan" ].include?(account.accountable_type)
diff --git a/test/models/simplefin_account_processor_test.rb b/test/models/simplefin_account_processor_test.rb
index 0b13f0e97..11b9b4456 100644
--- a/test/models/simplefin_account_processor_test.rb
+++ b/test/models/simplefin_account_processor_test.rb
@@ -178,4 +178,24 @@ class SimplefinAccountProcessorTest < ActiveSupport::TestCase
     # Mapper should infer liability from name; final should be negative
     assert_equal BigDecimal("-100.00"), acct.reload.balance
   end
+
+  test "dormant credit card with zero balance and negative available-balance shows zero debt" do
+    sfin_acct = SimplefinAccount.create!(
+      simplefin_item: @item,
+      name: "Discover Card",
+      account_id: "cc_dormant",
+      currency: "USD",
+      account_type: "credit",
+      current_balance: BigDecimal("0"),
+      available_balance: BigDecimal("-3800") # credit limit reported as negative
+    )
+
+    acct = accounts(:credit_card)
+    acct.update!(simplefin_account: sfin_acct)
+
+    SimplefinAccount::Processor.new(sfin_acct).send(:process_account!)
+
+    # Should use explicit zero balance, not negative available_balance
+    assert_equal BigDecimal("0"), acct.reload.balance
+  end
 end