Statement credit.

In plain English

A statement credit is money the card issuer subtracts from what you owe, lowering your balance rather than depositing cash. It is a common way to receive cash-back rewards, a refund for a returned purchase, or a promised card benefit like a travel credit. Because it reduces your balance, it is not the same as a payment: you still owe any remaining balance and must make at least the minimum payment. A statement credit does not count as a payment toward the minimum due, which trips up people who assume a large credit covers that month's bill.

01Why it matters

A statement credit lowers your balance but does not count as your monthly payment, so knowing the difference prevents an accidental missed payment and late fee.

02The math, step by step

You redeem 150 dollars of cash back as a statement credit. Your balance drops by 150 dollars, but you still owe the rest and must make the minimum payment, because the credit does not count as your payment.

03What this is NOT

04Receipts

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