Home Banking What is a Statement Credit? – MyFinanceInsurance

What is a Statement Credit? – MyFinanceInsurance

by Shagun Saini
what is a statement credit

Here we get to know about what is a statement credit? And how you get statement credit on your credits card. Is this the same as a cashback and rewards or say statement credit vs cashback and know how to use statement credit as well?

What is a Statement Credit?

In simpler terms, a statement credit is the amount of money credited to your account. So, if you own a credit card then you might be getting statement credit on your card. Here, the statement credit is a way in which a credit card company may issue money back or a cash-back reward as a form of a refund for the payments made by you on your credit card. Here, the money is paid by the credit card company or provider to your account. Thus, this statement credit works as deductions made to your credit card balance or a cash payment to your account.

As for reference assume that your credit card statement of $ 6000 and your statement credit provided by the credit card company or provider is $ 500, then your credit card balance that you owe us $ 5,500 i.e. ( $ 6000 – $ 500 ).

You can see this credit statement in your monthly credit card statement or online as well.

Thus, the statement credit definition can be quoted as, the ways a credit card company issues money back for a return, a cash-back reward, or say cashback or rewards that you have earned on your credit card.

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How Do Statement Credits Work?

A negative amount on your credit card statement is statement credit, which can arise in case of a returned item or cashback reward offered by the credit card company. That invariably reduces the credit card statement balance you owe to the credit card company. So, this statement credits are often a result of credit card rebate and cash-back programs, that may differ according to the user.

Credit Card Statement Example:

Suppose you are liable to pay $ 80,000 towards your credit card statement bill and you got $ 800 as statement credit then your actual balance after deducting the statement credit would be $ 72,000.

Ways to Get a Statement Credit?

There exist various ways in which the credit card holder can get the statement credits. Thus, after knowing what is a statement credit? You should also know what are the different ways in which you can get statement credit and enjoy your rewards:

  1. Returns
  2. Travel Statement Credit
  3. An introductory Bonus Statement Credit
  4. Extra Perks Statement Credit

So, let us discuss these ways in detail.

  • Returns

When you Returns an item that was purchased by you earlier, the credit card company issues a return of the amount.

  • Travel Statement Credit

Travel statement credit is often available as a reward or a benefit for many cardholders. Thus, you receive this benefit by making travel purchases or making purchases for and during traveling. Where, in case of using travel reward credit cards you get points which later on can be used for redemption or making further purchases such as flight ticket, etc. where you can redeem your credit card points or credit statement so that you do not need to pay for the rewards you got.

Further, travel statement credit can be of any type such as follows:

General Travel Credits:

how to use statement credit

where credits are awarded for hotel, flights, car rentals, and more.

General Airline Credits:

statement credit vs cash back

Where reimbursement is made for your airline travels.

Dining Credits:

credit card statement example

Where you get reimbursement while using the card at restaurants, food delivery apps, etc.

Hotel Credits:

travel statement credit

With Hotel statement credits you can erase your purchases done on hotels.

  • An Introductory Bonus Statement Credit

While receiving a new credit card by the issuer company you may get an introductory bonus statement credit or an annual bonus when you spend a certain amount of money within the available time frame. As, for example, Blue Cash Preferred® Card from American Express offers has an intro offer where you will get $ 300 if you spend $ 3000 in the first 6 months of the issue of the card.

  • Extra Perks Statement Credit

Credit cardholders also get extra perks statement credit which is issued by the card providers and can be used for a specific purpose only. You can not use those perks credit for anything else.

Statement Credit vs Cashback:

Some credit card issuers offer to pay cashback on your credit card statements which is a great way to receive cash from the issuer that can be used as per your needs or even for the payment of your credit card statement. Whereas, while receiving a statement credit you may get rewards in form of cash or perks, or offers that will lessen the overall cash burden, you can even receive cashback on the same where your credit card statement will get reduced.

How to Use Statement Credit?

You can use your statement credit as the way you want or depending upon the credit card issuer offers. As, in the case of cashback you can get a check to your account or can also make a deduction within your credit card statement, and in the case of rewards you can apply them as per the conditions of your credit card company.

Frequently Asked Questions

  • How does a statement credit work?

A negative amount on your credit card statement is statement credit, which can arise in case of a returned item or cashback reward offered by the credit card company. That invariably reduces the credit card statement balance you owe to the credit card company. So, this statement credits are often a result of credit card rebate and cash-back programs, that may differ according to the user.

  • How do I get a credit statement?

You can get your credit statement in your monthly credit card statement or online as well by visiting the credit card issuer company website.

  • What is Bank of America Travel statement credit?

While using the Bank of America® Travel Rewards credit card, you are provided with the option to redeem your points for a statement credit for travel expenses such as on flights, hotels, cruises, rental cars, and baggage fees, and others, where you can also book any airline at as per your need or at any day as there are no blackout dates.

Conclusion:

Statement credit acts as a simple way in which you can redeem your rewards and get reimbursed for your spending’s done on your credit card. This is an efficient way to receive bonuses and redeem the rewards that will reduce your balance and construct good expenditure habits. So, with the detailed explanation of statement credit now you know what is a statement credit?

Tags

What is a Statement Credit For General Travel Credits?

What is a Statement Credit For General Airline Credits?

What is a Statement Credit For Hotel Credits?

What is a Statement Credit  For Dining Credits?

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