6 Things You Need To Know About Statement Credit Today | Statement Credit

What is a statement credit? A statement credit simply lessens your outstanding debt by the sum of your current payments. You can use this type of card over many cards, on many accounts and for many years. For example, if you already have a $100 outstanding balance and then redeem your rewards for a statement credit of just $5, then your outstanding debt goes down to only $ 95. So as long as you pay your debt off each month the statement credit won't add too much additional debt.

Some people think that their statement credit will not affect their credit score or possibly even be overlooked by their lenders in case of a future credit card application. That is simply not true. Lenders are very aware that you are applying for credit. Your application could be declined for many reasons, one of which is a statement credit. So it is important for the credit card issuer to report this type of activity to the credit reporting bureaus.

Now, what are the benefits of having a statement credit? The primary benefit is that you will get a statement credit almost instantly after you redeem your rewards for a statement credit. Most people do not like to wait on payments. They would much rather have the money sooner rather than later. If you are this person, then you will certainly appreciate having instant access to your money. As a result of getting your money faster you will also have more time to pay down your outstanding balances.

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Another benefit of having a statement credit is that you are able to pay your balance off more quickly. In most cases the rate at which you pay off your balance will be determined by your minimum payment each month. With a statement credit you can be assured that you are paying your minimum payment on time and as well as regularly. This in effect will reduce the amount of interest that you pay and it will also make your monthly payments more consistent. As a result your overall credit card debt will decrease significantly.

Many people enjoy receiving cash back credit cards. You will find that many credit card issuers offer frequent cash back credit cards. These offers tend to be very attractive and many people will take them up. They can give you cash back on expenditures made for air travel, dining out and many other types of everyday travel. In addition to cash back credit cards, many credit card issuers also offer point systems and bonuses which can earn you additional points and rewards.

The second major benefit of receiving a statement credit is that you can save money each month. With most credit cards, you will find that when your balance is paid off completely, you will receive only the very minimum payment required. Many times, after you pay off your balance, there is no remaining balance fee charged and this means that you will spend less each month on interest charges and fees. This will help to significantly lower your debt and to save you some money each month.

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Finally, you need to know that you can use statement credits for just about anything that you like. You will be able to use your statement credits for airfare discounts, for shopping or for dining at certain restaurants. You will also be able to redeem your statement credits towards your purchase of major items such as automobiles, homes and even furniture. As you can see, with the right statement credit you are given a variety of incentives and benefits that can save you hundreds of dollars each month. Many people report saving at least $300 a month with this type of credit card.

By now, you should have a better understanding of why it makes sense to get a statement credit and how it can save you money. There are no annual fee charged and you can redeem your statement credits for just about anything. Plus, you are given an incentive to pay your bills on time each month. These are just a few of the many reasons that you will want to make sure that you take advantage of getting a statement credit.

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