What is a Statement Credit?

What is a statement credit?

A statement credit is money that your credit card company puts back into your account, lowering your balance. It works like a refund to your card but doesn't count as a payment toward your monthly bill.

You'll still need to make at least your minimum payment to avoid late fees.

How you get statement credits

Statement credits show up on your account in several common ways:

When you return something

If you buy something with your credit card and then return it, the store puts the money back on your card as a statement credit.

Price matching

If you buy something that goes on sale soon after, some stores will give you back the difference as a statement credit.

Using your rewards

Many credit cards let you turn your points or cash back into statement credits to lower your balance.

Special card benefits

Some cards offer automatic credits for certain purchases. For example, some travel cards give you credits for airline fees or hotel stays.

Welcome bonuses

New cardholders can often earn statement credits after spending a certain amount in the first few months.

Disputed charges

When you question a charge on your bill, the credit card company might give you a temporary statement credit while they investigate.

Real-world example

Let's say you have a credit card that offers a $15 monthly credit for food delivery. You order a $25 meal through a delivery service. Later that month, your credit card company automatically applies a $15 statement credit to your account. This means you only pay $10 for that meal instead of the full $25.

Important things to remember

Even with statement credits reducing your balance, you still need to make at least your minimum payment each month. A $100 statement credit on a $500 balance means you owe $400, but you must still pay whatever minimum amount your card requires.

Some cards offer great statement credit benefits that can save you money on things you already buy.

For example, some Canadian cards offer statement credits for streaming services, grocery purchases, or transit costs.

Statement credits add real value

Statement credits are a simple way to save money with your credit card. They lower what you owe without any extra effort.

When choosing a new credit card, look at the statement credit benefits to see if they match your spending habits—the right card could put hundreds of dollars back in your pocket each year through these automatic savings.