In the world of Credit card rewardsStatement Credit is one of the most beloved benefits. How wonderful is it to run your fees with your credit card and know that at least some of them are covered by the credit card issuer?
If you’re not used to this concept and want to understand how statement credits work, read all you need to know.
What is a statement credit?
Statement Credit is the money that is applied to your account by credit card issuers such as Discover and American Express. It is deducted from the card balance, but not counted towards the minimum payment. For example, if you purchase something with a credit card and then return it for a refund, the refund will be issued as a statement credit. As another example, you might be able to redeem you Cashback Or a statement credit reward to reduce your credit card balance.
Another way you can get a Storm credit is, and my favorite way, when it’s your credit card profit. Some credit cards allow you to redeem your cashback for credits, while some great credit cards issue credits for purchases in certain categories.
For example, if you had a credit card that offered $20 a month’s credit on a Bookstore purchase (and if there was, I would have one!), I would go to the bookstore every month. In fact, I would probably spend $30 a month. Because I don’t think I can maintain under $20 in a bookstore. After that, the hypothetical credit card applies $20 to my card balance and ultimately pays just $10.
How to use statement credits
Usually, if it is part of the benefits of a card, no additional steps are required to use statement credits. Similar to the meal credits offered by American Express® GoldCard, you may need to register for the offer, but after you make a qualifying purchase, the credit will automatically appear in your account.
If you wish to redeem your reward as a statement credit, you will need to pass through your online account. However, please note that redeeming cashback for credits in a statement is a fair transaction, and redemption of points and miles is not usually the best idea. When you do it, you Travel rewards It can lose a lot of value. For example, if you redeem you Track the ultimate reward Statement Credit Points, value is 1 cent per point. This is more than the many reward programs offered for this type of redemption, but other redemption options allow you to get more. An example is, according to the Bankrate rating, if you transfer Chase rewards there, it would include an estimated 2.3 cents in the Hyatt Program world. Alternatively, if Chase Sapphire Reserve® Cardholders redeem them to pass through the Chase Labels Portal, the points are worth 1.5 cents each.
Some credits will be posted immediately, while others will have to wait a few days to weeks.
Credit cards that offer annual statement credit
We reached my favorite part. Let’s talk about the cards that come with the most attractive annual statement credits.
Best credit cards with annual statement credit
| card | Statement Credits and Other Benefits | Reward | Annual fees |
|---|---|---|---|
| Chase Sapphire Reserve® |
|
|
$550 |
| American Express Platinum Card |
|
|
$695 |
| American Express® Gold Card |
|
|
$325 |
Chase Sapphire Reserve
It comes with an annual credit and it is impossible to talk about credit cards that don’t talk about Chase Sapphire Reserve. the $300 annual travel credit It’s a legendary thing. Each card will automatically be added to your account on an anniversary and will be applied to a wide range of purchases.
Qualified purchases include flights, car rentals, hotel stays, cruises, discount travel sites (including Priceline, Expedia, and Orbitz), public transport (trains, buses, taxis, etc.), toll bridges, highways, parking, garages, timeshares and travel agents.
As you can see, it’s easy to take advantage of this benefit. This already justifies more than half of the cards $550 Annual fee.
American Express Platinum Card
American Express Platinum Card is another very popular travel credit card. in $695 We offer a series of statement credits over $1,500 a year at annual fees.
This card allows you to enhance your travel experience, enjoy food and entertainment credits, fitness-related credits, and earn a variety of credits. Overall, Amex Platinum offers more from a statement credit perspective compared to Chase Sapphire Reserve, but these credits are less flexible.
Chase Sapphire Reserve allows nearly any type of travel purchase to qualify for generous credit. That’s not the case with Amex Platinum. AmexPlatinum only offers statement credits for certain types of purchases. Even if you have airline credit, you can only choose one airline and have to commit to that airline once a year in January. It doesn’t have much room to choose the best fares and options for your trip.
American Express Gold Card
As you can see, credit cards primarily issue credits for travel purchases. Still, there are other options. For example, the American Express Gold Card will make your dream of becoming a foodie come true.
of a $325 Annual fees can be ordered via Uber cash up to $120 for rides and meals ($10 per month, expires at the end of the month), and up to $120 dining credits ($10 per month, registration required) at eligible restaurants or via Grubhub. Spending on delicious food costs $240 a year!
Gold comes with a credit of up to $100 to your hotel collection (when booking for two or more nights at the American Express Travel Portal).
Conclusion
Credit Card Statement Credit is always a joy. This means you’re getting some great perks. It does not count towards the minimum payment, but your balance will drop. Also, having statement credit on your perks list could be great news for your budget if you get the right credit card.
