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Rossella De Berti/Getty Images February 01, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Ana Staples is a reporter for Bankrate and an expert on all things credit basics and personal finance for the younger generation. India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has lived and worked in three different countries and hopes to explore more of the world post-pandemic. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. In the world of , a statement credit is one of the most beloved benefits. How fantastic is it to run a charge on your credit card and know that at least a portion of it will be covered by your credit card issuer? If you’re not familiar with the concept and would like to figure out how statement credits work, read on for everything you need to know—including which cards offer the best statement credit benefits. What is a statement credit
A statement credit is money that a credit card issuer, like Discover or American Express, credits to your account. It’s deducted from your card balance, but it won’t count toward your minimum payment. For example, if you bought something on your credit card and then returned it for a refund, that refund would be issued as a statement credit. Or you can redeem your or rewards for a statement credit to reduce your credit card balance. Lightbulb Bankrate insight A statement credit will reduce the balance you owe, but it doesn’t count as a payment. If you don’t make your minimum payment after being issued a statement credit, you’ll face the standard late fees and penalties. The other way you can get a statement credit—and my favorite way—is when it’s a benefit on your credit card. Some credit cards allow you to redeem cash back into credit, while some awesome credit cards issue statement credits in certain purchases categories. For instance, if I had a credit card that offered a $20 monthly credit on bookstore purchases (and if it existed, I’d have it!), I’d go to a bookstore every month. In fact, I’d probably spend $30 each month, since I doubt I’d be able to keep my spending under $20 at a bookstore. The hypothetical credit card then would “forgive” me $20, and I’d only have to repay $10. How to use a statement credit
Normally, there are no extra steps needed to use your statement credits when they’re part of your card’s benefits. Sometimes, you might need to enroll in an offer—like with Uber Cash and dining credits for the American Express Gold Card—but after that, a credit will appear on your account automatically after you make an eligible purchase. If you’re redeeming your rewards as a statement credit, you’ll need to go through your online account to do so. Note, however, that while redeeming cash back for a statement credit is a fair deal, redeeming your points or miles for it is usually not the best idea. When you do that, your can lose a lot of value. For example, if you redeem your Chase Ultimate Rewards points for a statement credit, the value will be 1 cent per point. It’s more than many rewards programs offer for this type of redemption, but you can get much more with other redemption options. Examples include an when you transfer your points to World of Hyatt Loyalty Program or 1.5 points if a Chase Sapphire Reserve cardholder purchases travel through the Ultimate Rewards portal. Some credits, like Uber Cash, will post immediately while others will require waiting anywhere from a few days to several weeks. Credit cards that offer annual statement credits
We’ve gotten to my favorite part. Let’s talk about the cards that come with the most attractive annual statement credits. Best credit cards with annual statement credits
Card Statement credit and other benefits Rewards Annual fee Up to $300 annual travel credit Up to $100 Global Entry/TSA PreCheck credit No foreign transaction fees Complimentary access to more than 1,000 airport lounges Free Lyft Pink membership for one year (if activated by March 31, 2022) Earn 5X total points on air travel 10X total points on hotels, car rentals and Chase Dining when you use Chase Ultimate Rewards. Earn 3X points on general travel and dining 10X total points on Lyft purchases (through March 31, 2022) 1X points on all other purchases $550 $250 travel credit (applies to most travel purchases) Up to $100 credit for Global Entry/TSA PreCheck every five years Priority Pass Select airport lounge access 4th night free on any hotel stay (twice per year) No foreign transaction fees 5X points on air travel and restaurants 3X points on hotels and cruise lines 1X points on other purchases $495 Up to $200 in statement credits per calendar year in baggage fees and more at one qualifying airline Up to $100 Global Entry or TSA PreCheck credit every four years Up to $200 Uber Cash credit . Priority Pass Select membership Hilton Honors Gold Status Marriott Bonvoy Gold Elite Status American Express Platinum concierge service 5X points on flights booked directly with airlines or with American Express Travel and on prepaid hotels booked through American Express Travel (on up to $500,000 on purchases per calendar year) 2X points on prepaid car rentals through American Express Travel 1X points on all other purchases $695 Up to $120 in Uber Cash Up to $120 dining credit Up to $100 hotel credit ShopRunner service 4X points on restaurants (plus takeout and delivery in the U.S.) 4X points for Uber Eats purchases and at U.S. supermarkets (on up to $25,000 in purchases per year, then 1X points) 3X points on flights booked directly with airlines or via American Express Travel 2X points on rental cars through American Express Travel 1X points on all other purchases $250 Chase Sapphire Reserve
It’s impossible to talk about credit cards that come with annual credits and not talk about the Chase Sapphire Reserve. Its is the stuff of legend. It’s automatically added to your account each card anniversary and applies to a wide range of purchases. The qualifying purchases include As you can see, it’s easy to take advantage of this benefit, which already justifies more than half of the card’s $550 annual fee. Citi Prestige Card*
The ($495 annual fee) is another good option for frequent travelers. Its $250 annual statement credit offer is lower than that of the Chase Sapphire Reserve, but it also covers many purchase categories, including purchases from Additionally, cardholders can get up to $100 back in fee credits for or every five years. The Platinum Card from American Express
The Platinum Card from American Express is another highly popular travel credit card. At $695 per year in annual fees, it offers a range of statement credits. With this card, you can get $100 in credit for either Global Entry or TSA PreCheck every four years when you charge the application fee to your Amex, $15 in Uber ride credits each month (plus an extra $20 credit in December), a $100 hotel credit to use toward qualifying charges when you stay two or more consecutive nights with a brand in The Hotel Collection and up to $100 in statement credits for Saks Fifth Avenue purchases ($50 for January through June and $50 for July through December). The Amex Platinum also comes with up to a each year to help you save money on incidentals—like baggage fees—when you fly with a specific airline of your choice. Plus, you can get up to $189 in credits for a CLEAR membership (on top of PreCheck or Global Entry), up to $240 in credits each year for eligible digital entertainment purchases (up to $20 per month, qualifying services include Peacock and the New York Times, among others), up to $300 on eligible Equinox memberships fitness credits per year (up to $25 per month, enrollment required) and up to $200 in credits for prepaid hotel bookings with Fine Hotels + Resorts or The Hotel Collection properties via American Express Travel. All in all, it’s more in statement credits than offered by the Chase Sapphire Reserve or Citi Prestige, but these credits are also less flexible. With the Chase Sapphire Reserve or Citi Prestige, almost any kind of travel purchase qualifies for a generous credit. That’s not the case with the Amex Platinum, which only offers statement credits for specific types of purchases. Even with the airline credit, you can only choose one airline, and you have to commit to that airline once per year in January. That doesn’t leave much room for choosing the best fares or options for your travels. American Express Gold Card
As you can see, rewards credit cards mainly issue statement credits for travel purchases. Still, there are other options—for instance, the American Express Gold Card: a foodie’s dream come true. For a $250 annual fee, you’ll get up to $120 in Uber Cash ($10 per month in Uber Cash, expiring at the end of the month) for rides and eats as well as up to $120 in dining credits ($10 per month, enrollment required) at eligible restaurants or ordering in through Grubhub and Seamless. That’s $240 per year to spend on delicious food! The Gold also comes with an up to $100 credit with the Hotel Collection (when booking two or more consecutive nights through the American Express Travel portal). The bottom line
A statement credit on your credit card is always a joy—it means you’re saving some money or getting rewards. Even though it doesn’t count toward your minimum payment, it lowers your balance. And if you get the right credit card, having statement credits on the list of benefits could be great news for your budget. Interested in getting this kind of card? Head over to and check offers tailored to your credit profile. Meanwhile, I’m signing off to use my monthly Uber Cash from Amex. information about the Citi Prestige Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer. SHARE: Ana Staples is a reporter for Bankrate and an expert on all things credit basics and personal finance for the younger generation. India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has lived and worked in three different countries and hopes to explore more of the world post-pandemic. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Related Articles