statement credits

Statement credits are refunds or discounts applied directly to your credit card account. When a merchant issues a refund or when you participate in a rewards program, the amount is credited to your balance, reducing what you owe. For example, if you spend $100 and receive a $10 statement credit, your new balance would be $90. This process not only lowers your outstanding balance but can also help you manage your expenses more effectively. Statement credits can come from various sources, including returned purchases or promotional offers from credit card companies.