{"id":20748,"date":"2024-08-05T08:00:00","date_gmt":"2024-08-05T14:00:00","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=20748"},"modified":"2025-06-05T15:36:52","modified_gmt":"2025-06-05T21:36:52","slug":"what-is-statement-credit","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/what-is-statement-credit.html","title":{"rendered":"What is a statement credit + reasons you might have one"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

A statement credit is money credited back to your credit card account, decreasing your balance. It’s usually the result of a return, redeemed credit rewards or disputed a charge.<\/p>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

Ever browse through your credit card statement and come across a negative transaction? This is a statement credit, which is essentially money credited back to your account, reducing the amount you owe. Statement credits may appear on your account after making a return, redeeming cash back or disputing a charge. <\/p>\n\n\n\n

Keep reading to discover reasons you might receive a statement credit and how to redeem them to save money on your credit card bill. <\/p>\n\n\n\n

What is a statement credit? <\/strong><\/h2>\n\n\n\n

A statement credit is money that your credit card company credits back to your account. Typically, statement credits appear as green or red with a negative to indicate that you\u2019re receiving money, thus reducing your credit card balance.<\/p>\n\n\n\n

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Statement credits are usually applied automatically to your credit card bill, reducing the total amount you owe on your credit card. <\/p>\n\n\n\n

Keep in mind that statement credits aren\u2019t the same as payments, and you must still pay your credit card bill<\/a> by the due date. The only exception is if the statement credit you receive is more than the amount you currently owe on your credit card. In that case, you wouldn\u2019t necessarily need to make a payment since the statement credit covers the balance. <\/p>\n\n\n\n

6 reasons you might receive a statement credit <\/strong><\/h2>\n\n\n\n

Below are five of the most common reasons you might receive a statement credit. <\/p>\n\n\n\n

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1. Making returns<\/strong><\/h3>\n\n\n\n

The most common reason for receiving a statement credit is that you made a return. If you used your credit card to make the original purchase, you\u2019ll receive your money back as a statement credit on your credit card account. <\/p>\n\n\n\n

2. Redeeming cash back rewards or points<\/strong><\/h3>\n\n\n\n

Most types of credit cards offer<\/a> cash back or points, which you can put toward your balance. When you redeem these rewards, they\u2019ll show up as statement credit. <\/p>\n\n\n\n

3. Receiving a new cardmember bonus <\/strong><\/h3>\n\n\n\n

In today\u2019s competitive credit card market, many credit card companies will offer statement credits as an incentive to get new customers to sign up for their cards. For example, the Wells Fargo Active Cash\u00ae Card gives new cardholders a $200 cash bonus after they spend $500 within the first three months after opening the account. <\/p>\n\n\n\n

4. Applying for Global Entry or TSA PreCheck<\/strong><\/h3>\n\n\n\n

Several credit cards offer cardholders a credit of $85 or $100 towards travel programs like Global Entry or TSA PreCheck. After you use your credit card to pay the application fee, you\u2019ll receive a statement credit as reimbursement.<\/p>\n\n\n\n

5. Receiving a price adjustment <\/strong><\/h3>\n\n\n\n

Some merchants have price adjustments or \u201cbest price guarantees,\u201d which allow buyers to get a partial refund if they can find the item at a lower price or if it goes on sale within a specific time frame. Therefore, you would receive a statement credit for the difference if you can find the item at a better price. <\/p>\n\n\n\n

6. Disputing a charge <\/strong><\/h3>\n\n\n\n

You might dispute a charge<\/a> for many reasons, such as fraudulent charges, billing errors or merchant issues. If you dispute a charge on your credit account and your credit issuer approves it, you\u2019ll receive the money back in the form of a statement credit. <\/p>\n\n\n\n

How to use statement credit<\/strong><\/h2>\n\n\n\n

Typically, statement credits are automatically applied to your credit card account, so you don\u2019t need to take further action to redeem them. <\/p>\n\n\n\n

If you\u2019re looking to apply your rewards as statement credit, you\u2019ll have to do so manually in your account\u2019s online portal. You can typically find this in the benefits section of your credit card issuer\u2019s online portal or mobile app. <\/p>\n\n\n\n

Keep in mind that redeeming travel points as statement credit is generally not recommended since your points can lose value. For example, with the Chase Sapphire Preferred\u00ae card, you can redeem your travel points for 1.25 cents per point, while each point is only worth 1 cent if you opt for cash back. <\/p>\n\n\n\n

Improve your credit with Lexington Law Firm<\/strong><\/h2>\n\n\n\n

Statement credits can help you save money on your credit bill from time to time. However, understanding statement credit and how it works is just one aspect of credit and how it works. 
If you\u2019re looking to remove inaccuracies on your credit report, our team at Lexington Law Firm can help you get started. Learn more with a free credit assessment<\/a> today. <\/p>\n","protected":false},"excerpt":{"rendered":"

A statement credit is money credited back to your credit card account, decreasing your balance. It’s usually the result of a return, redeemed credit rewards […]<\/p>\n","protected":false},"author":63,"featured_media":20751,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"yoast_head":"\nWhat is a statement credit + reasons you might have one<\/title>\n<meta name=\"description\" content=\"A statement credit is essentially money credited back to your account. 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