What Is a Statement Credit?
5 Min Read | Published: April 25, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn what a statement credit is, how it works, and the different ways you can earn one, like through returns, rewards, or qualifying purchases.
At-A-Glance
- A statement credit is an amount that a credit card issuer sends to an account, which reduces the overall card balance.
- You may see statement credits that result from returns, making a qualifying purchase, redeeming rewards, or becoming eligible for a welcome offer.
- Statement credits vary by card issuer and credit card, so it’s important to read the fine print and understand eligibility before you apply for a card.
Depending on the credit card you choose, you might notice that in addition to earning points or cash back, you can also receive a statement credit on qualifying purchases. But what is a statement credit, and how does it affect your credit card account?
Let’s take a look at what it means to get a statement credit, how you might receive one, and how they differ from cash back or other rewards accumulation.
What Is a Statement Credit?
A statement credit is money you receive in your account because of a specific action, like returning merchandise or making a particular purchase. The credit goes into your account and reduces the balance on your card, but it may not go toward your minimum monthly payment.1
When you make a qualifying purchase or return an item, you may receive a statement credit within a few days or weeks, but in some instances, like a promotional offer, it can take longer.
There are different types of statement credits, including:
- Statement Credits When You Make a Return
If you make a purchase on your credit card, you’ll see the charge in your account, which will add to your balance. If you decide to return that item, the amount may be issued back as a statement credit, which reduces your account balance. - Statement Credits When You Redeem Rewards
If you regularly use a rewards credit card, you may be able to redeem rewards points for a statement credit. In this case, the number of points you choose to redeem is translated to a dollar value that’s added to your account, reducing your total card balance. - Statement Credits for Qualifying Purchases
Certain credit cards may offer statement credits for qualifying purchases across select categories, such as buying groceries, booking travel or paying for a streaming subscriptions. - Statement Credits for Qualifying for Welcome Offers
Some credit cards issue statement credits if you’re eligible for a welcome offer. These types of cards may require you to spend a certain amount on the card within a set number of months to qualify. If you meet the requirements, you'll then be issued the statement credit, which you may receive in about 8-12 weeks, depending on the card terms.
How to Earn and Use Statement Credits
The way you earn statement credits varies depending on the credit card. When you sign up for a card, you may see statement credits advertised as a card benefit. The card’s terms and conditions provide specifics on how to qualify for statement credits and the way in which they’ll be issued to your account.
For certain statement credits, you may need to enroll in the offer before you can be eligible to earn the credit. Depending on the credit card issuer, you may be able to complete the enrollment process through your online account, mobile app, or by contacting the credit card issuer directly.
Statement Credit vs. Cash Back
A statement credit is an amount that directly reduces your card balance, and it’s may not be something you need to request. For example, let’s say your card gives a $20 statement credit when you order food through a particular app each month. By ordering food through that app using your credit card, you may automatically qualify for that statement credit. From there, the card issuer reviews your transactions and determines that the statement credit should be applied to your account.
Cash back is different from a statement credit in that it’s something you need to select. When you earn rewards, whether those are cash back or points, they can accumulate over time. Redemption options may vary by credit card and card issuer, but you may be able to choose between options like receiving a statement credit, transferring funds to a checking account, or using cash back to purchase gift cards or other merchandise.
You may also be able to allow cash back rewards to accrue over a certain period and redeem them for a larger reward. Unlike rewards, statement credits are issued to your account when a transaction occurs, which doesn’t give you flexibility in choosing when or where they’re applied.
Credit Cards That Offer Statement Credits
There are a number of credit cards that offer statement credits on qualifying purchases. Here are two popular options from American Express.
The Platinum Card®
The Platinum Card® offers a variety of benefits and statement credits on eligible travel, hotel, and airline purchases that can help enhance your travel experiences.2 To learn more about the statement credits that the Platinum Card offers, read "A Look at The Platinum Card’s Elevated Travel, Airline, & Hotel Benefits."
American Express® Gold Card
The American Express® Gold Card is a great option for food lovers and offers statement credits on eligible dining purchases.3 To learn more about how the Amex Gold Card can maximize your love of dining, read “A Complete Guide to Amex Gold Dining”.
If you’re looking for a credit card that offers statement credits, there are plenty of options to explore. As you review available cards, look at the features that matter most to you, whether that’s benefits and perks or annual fees.
Frequently Asked Questions
Receiving a statement credit is unlikely to impact your credit score. However, reducing your total card balance could have a positive impact on credit utilization, one factor in determining your credit score. Learning how your credit score is calculated is an important factor in understanding how your credit score works.
If you aren’t sure why you received a statement credit, contact your credit card issuer. There are many ways to receive a statement credit, including a refund from a prior purchase, making a qualifying purchase, or becoming eligible for a welcome offer.
Say your card has a balance of $300, and you qualify for a statement credit that’s $25. That means when the statement credit is issued, your balance is reduced by $25 for a new balance of $275.
The Takeaway
There are a number of ways to receive a statement credit, whether it’s from a refund, redeeming rewards, or making a qualifying purchase on a statement credit offer. While the statement credit can reduce the overall amount on your card, remember that it won’t count toward your monthly minimum payment, so it’s important to continue to pay at least the minimum due each month.
1 “What Is a Statement Credit?,” Experian
2 For more on Offers & Benefit Terms for The Platinum Card®, click here.
3 For more on Offers & Benefit Terms for the American Express® Gold Card, click here.
Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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