What is a statement credit?
A statement credit is a feature offered by many credit card companies that allows a credit card user to reduce the amount of their outstanding balance. This is done by the credit card company issuing the user a credit for a certain amount, which is applied towards the outstanding balance on the card, reducing it by the amount of the credit. Statement credits can be used for a variety of reasons, such as reducing the amount of money the cardholder owes, or offsetting a charge the cardholder made that was not covered by their credit limit. In Delaware, it is important to keep in mind that statement credits can only be used if the cardholder has the available balance to cover the amount of the credit. In addition, statement credits can be used to help a cardholder stay on track with their payment schedule. By using statement credits, the cardholder can reduce their balance and make it easier to make the minimum payments each month. This can help the cardholder avoid incurring additional interest or late fees due to missed payments. Lastly, statement credits can be used to help the cardholder build their credit. By actively managing and reducing their balance, a cardholder can improve their credit score, which can help them qualify for more credit in the future. In Delaware, statement credits can be a useful tool when it comes to managing credit card debt. It is important that cardholders understand how statement credits work and how they can be used responsibly in order to ensure that the cardholder is using their credit in the most beneficial way possible.
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