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What is a statement credit?

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Key takeaways

  • A statement credit is money that a card issuer applies to your account for making specific purchases.

  • It can help bring down your card balance, even though it can’t substitute for your minimum payment, which you still be responsible for making.

  • You can also redeem a statement credit for cash back rewards to make other qualifying purchases.

In the realm of credit card rewards, a statement credit is a valuable benefit. It’s a great feeling to know that part of your credit card charge will be covered by the issuer.

If you’re unfamiliar with how statement credits work, keep reading to learn all you need to know, including which cards offer the best statement credit perks.

What is a statement credit?

A statement credit is money that a credit card issuer, such as Discover or American Express, applies to your account. It reduces your card balance but doesn’t count toward your minimum payment. For example, if you make a purchase on your credit card and then return it for a refund, the refund would be issued as a statement credit. You can also redeem cash back or rewards for a statement credit to lower your balance.

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Bankrate insight

A statement credit reduces your balance but doesn’t count as a payment. Remember to make your minimum payment even after receiving a statement credit to avoid late fees and penalties.

Another way to receive a statement credit is through credit card benefits. Some cards allow you to redeem cash back as a credit, while others offer statement credits for specific purchase categories.

For example, imagine having a credit card that provides a $20 monthly credit for bookstore purchases. You would enjoy visiting a bookstore every month and potentially paying only a fraction of your total spending after the credit is applied.

How to use a statement credit

Using statement credits from your card benefits typically requires no extra steps. In some cases, you may need to enroll in specific offers, such as dining credits from the American Express® Gold Card. The credit will be automatically applied to your account after making a qualifying purchase.

When redeeming rewards for a statement credit, you’ll need to access your online account to complete the process. Keep in mind that while converting cash back to a statement credit is a good deal, using points or miles for this purpose may not provide the best value. It’s often more beneficial to use them for travel rewards.

Depending on the card, some statement credits post immediately, while others may take several days or weeks to appear.

Credit cards that offer annual statement credits

Let’s dive into the exciting part — discussing credit cards with attractive annual statement credits.

Best credit cards with annual statement credits

Card Statement credit and other benefits Rewards Annual fee
Chase Sapphire Reserve®

  • $300 annual travel credit

  • No foreign transaction fees

  • Free Lyft Pink membership for one year (if activated by March 2025)

  • Complimentary:

    • Access to more than 1,000 airport lounges

    • DoorDash DashPass (if activated by Dec. 31, 2024)

  • 10X points on:

    • Lyft purchases (through March 2025)

    • Chase Dining purchases through Ultimate Rewards

    • Hotel stays and car rentals through Ultimate Rewards

  • 5X points on:

    • Air travel through Ultimate Rewards

  • 3X points on general travel and restaurant purchases

  • 1X points on all other purchases

Travel rewards apply after earning the $300 travel credit

$550
The Platinum Card® from American Express

  • Up to:

    • $100 Global Entry/TSA PreCheck credit

    • $100 application fee credit for Global Entry or TSA PreCheck

    • $189 in annual Clear Plus membership statement credits by paying with your card

    • $200 in airline fee credits per calendar year for incidentals with a preselected qualifying airline

    • $200 in annual credits for prepaid hotel bookings at Fine Hotels + Resorts or The Hotel Collection properties via American Express Travel (The Hotel Collection requires a minimum two-night stay)

    • $200 in Uber Cash

    • $240 each year in digital entertainment credits

    • $300 in eligible Equinox fitness membership credits per calendar year

    • $155 in annual Walmart+ monthly membership credits

    • $100 credit on qualifying hotel purchases with The Hotel Collection

    • $100 for Saks Fifth Avenue purchases annually

    • $300 credit for a single, eligible SoulCycle At-Home bike purchase using your card through Amex’s provided link

  • Priority Pass Select membership

  • Hilton Honors Gold Status

  • Marriott Bonvoy Gold Elite Status

  • American Express Platinum concierge service

  • Enrollment required for some benefits

  • 5X points on flights booked directly with airlines or through Amex Travel (up to $500,000 spent annually on these purchases)

  • 2X points on prepaid car rentals through American Express Travel

  • 1X points on all other purchases

 $695
American Express® Gold Card

  • Up to:

    • $120 in annual Uber Cash ($10 monthly directly in your Uber account)

    • $120 in annual dining credits ($10 monthly)

    • $100 hotel credit with The Hotel Collection (requires 2-night minimum booking)

    • $84 annually for Dunkin’ purchases (up to $7 monthly)

  • Complimentary ShopRunner membership

  • Enrollment required for some benefits

  • 4X points on:

    • Restaurants, including takeout and delivery in the U.S.

    • Uber Eats purchases

    • U.S. supermarkets (on up to $25,000 in purchases per year, then 1X points)

  • 3X points on flights booked directly with airlines or via American Express Travel

  • 1X points on all other purchases

 $250

Chase Sapphire Reserve

When discussing credit cards with annual credits, the Chase Sapphire Reserve is a standout choice. Its $300 annual travel credit is highly regarded and automatically applied to your account each card anniversary for various travel purchases.

Qualifying purchases include flights, car rentals, hotel stays, cruises, public transportation, tolls, parking, and more, making it easy to maximize this benefit and offset a significant portion of the $550 annual fee.

The Platinum Card from American Express

The Platinum Card from American Express is a top travel credit card with a range of statement credits totaling over $1,500 annually for a $695 annual fee.

While the Amex Platinum offers a variety of credits to enhance travel experiences and lifestyle perks, they are more specific compared to the Chase Sapphire Reserve. The airline credit, for example, requires choosing one airline per year in January, limiting flexibility in booking flights.

American Express Gold Card

While travel purchases often receive statement credits, the American Express Gold Card caters to food enthusiasts with its dining and Uber Cash benefits.

For a $250 annual fee, you can enjoy up to $240 in credits for Uber and dining, along with other perks like hotel credits and a complimentary ShopRunner membership.

Overall, having statement credits as a benefit on your credit card is a positive addition that can help manage your budget effectively.

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Interested in getting this kind of card?

Visit CardMatch™ to explore offers tailored to your credit profile. Meanwhile, I’m off to use my monthly Uber Cash from Amex.

See also  Credit card information: The basics you need to know
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