- An array of popular credit cards let you cash in your rewards for statement credits that reduce how much you owe on your card.
- This option can be a good one if you don’t find other possibilities, like travel redemptions, very appealing right now.
- Some credit cards on this list, like the Citi® Double Cash Card and the Chase Freedom Unlimited®, don’t charge an annual fee. Some of them also offer exceptional welcome bonuses you can earn after you meet a minimum spending requirement in the first three months.
- If you want to “get ahead” with rewards, make sure you follow the golden rule of credit cards. Never carry a balance from month to month, and avoid credit card interest like the plague.
- See Business Insider’s list of the best cash-back credit cards.
Rewards credit cards offer different types of incentives based on your spending, which can include airline miles, hotel points, cash back, and flexible travel points. Some of the best rewards cards earn points that can be redeemed in more than one way, like Chase points and Amex points, while others stick to basic options like letting you redeem your rewards for a check in the mail.
In today’s financial climate, you may prefer cards that let you redeem for statement credits above all else. Statement credits let you reduce the amount of money you owe on your credit card bill, so you might even consider them a “discount” on your purchases.
Just remember that, to get ahead with credit card rewards, you have to pay your credit card balance in full each month and never, ever pay interest on a revolving balance.
If you’re in the market for a credit card that lets you redeem rewards for statement credits, there are many options to consider. Here are some of the best credit cards that make redeeming points for statement credits a breeze.
Discover it® Cash Back
Get cash back on rotating bonus categories: Discover it® Cash Back
The Discover it® Cash Back earns 5% cash back on up to $US1,500 spent in quarterly bonus categories (then 1%) as well as 1% back on all other purchases. Discover will also match all the rewards you earn the first year with no limits to what you can earn.
Discover has already announced all of its bonus categories for 2020. These include gas stations, Uber, Lyft, and wholesale clubs (April – June), restaurants and Paypal (July – September), and Amazon.com, Walmart.com, and Target.com (October – December).
When it comes to redeeming your rewards, you can use them for gift cards or cash back, or for statement credits applied to your account.
Chase Freedom Unlimited®
1.5% cash back on every purchase: Chase Freedom Unlimited®
The Chase Freedom Unlimited® starts you off by letting you earn $US200 in cash rewards after you spend $US500 on your card within three months of account opening. You also earn a flat 1.5% cash back on every dollar you spend, and there’s no annual fee.
This card comes with some of the most flexible redemption options available. You can cash in your points for statement credits or a check in the mail, but you can also opt for gift cards, merchandise and more.
This card also comes with 0% APR on purchases for the first 15 months after account opening, followed by a 14.99%-23.74% variable APR. This period with no interest can help you save money as you pay off a large purchase over time, or if you need to consolidate high-interest debt with a balance transfer.
Chase Sapphire Preferred® Card
Points for travel or cash back: Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is frequently considered one of the top travel credit cards, and this is largely due to the flexibility of Chase Ultimate Rewards points. This card starts you off with 60,000 points after you spend $US4,000 on your card within three months of account opening, and you’ll earn 2x points on travel and dining and 1x points on all other purchases.
This card does come with a $US95 annual fee, but the first-year rewards are more than worth it. Also note that this card gives you many options for using your points. You can redeem your rewards for statement credits on your card or cash in the mail, but you can also use them for merchandise, experiences, and travel through the Chase Ultimate Rewards portal.
Additionally, the Chase Sapphire Preferred® Card lets you transfer points at a 1:1 ratio to popular airline and hotel partners like Marriott Bonvoy, World of Hyatt, British Airways, Southwest Rapid Rewards, and United MileagePlus.
Citi® Double Cash Card
Earn up to 2% back on everything: Citi® Double Cash Card
The Citi® Double Cash Card offers the highest rate of cash back on purchases across the board at 2%. You’ll get 1% when you make a purchase and another 1% when you pay it off. This card doesn’t have an annual fee, either.
When it comes time to redeem your rewards, Citi lets you cash them in for statement credits, direct deposit, or a check. With that in mind, this credit card is ideal if you want to earn a high rate of cash-back rewards, then use them to reduce the amount of your credit card bill all at once or incrementally over time.
Best rewards for dining: Capital One® Savour® Cash Rewards Credit Card
Finally, don’t forget to check out the Capital One® Savour® Cash Rewards Credit Card if you spend a lot on dining or entertainment. This card starts you out with a $US300 cash bonus after you spend $US3,000 within three months of account opening, and you also earn 4% cash back on dining and entertainment, 2% back at grocery stores, and 1% back on all other purchases.
A $US95 annual fee applies, but you won’t pay any foreign transaction fees. Fortunately, this card makes redeeming your rewards a breeze. You can cash them in for cash back or statement credits in any amount, and at any time you want.
Related Content Module: More Credit Card Coverage
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