What is a statement credit?

A statement credit is a type of credit on a credit card account in Washington that reduces the balance owed on the account. This type of credit is usually a refund of money that a cardholder has already paid. It can also be a refund of money that a cardholder did not pay but was billed for on their credit card statement. Examples of statement credits include cash back rewards, refunds for returns, and credits for fraudulent charges. Statement credits are reported to the credit bureaus and can improve a credit score, since it decreases the amount of money owed on the card. Cardholders can also use statement credits to pay for purchases or balance transfers, or to increase their available credit by reducing the balance. When a cardholder receives a statement credit, payment is applied to the account in the same way that a regular payment would be. It’s important to keep in mind, though, that statement credits may not always appear immediately on the credit card account, so it is important to check the account balance to make sure the credit is applied.

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