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Credit Card Rewards - Any Reason to Ever Do Anything Other Than Statement Credit?

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  • Credit Card Rewards - Any Reason to Ever Do Anything Other Than Statement Credit?

    I just redeemed some CC rewards for a statement credit. I had the option to redeem for a statement credit, gift cards, or merchandise. I've always redeemed for statement credit, but since I had some extra time, and since it has been ages since I've even looked at the other options, I decided to peruse the GCs and merch. I didn't see anything that would make more sense than a simple statement credit. GCs were at face value (no discount), and none of the merchandise was anything I have on my list and the prices didn't look competitive. Since I try to keep my mind and options open, I wonder if anyone knows of a time when it makes sense to use CC rewards for anything other than a statement credit? Maybe if you have a balance on your card and need a GC for a gift but don't want to rack up more interest???

  • #2
    I always do a statement credit, too.

    If you can get a GC at a discount, and it's for something that you'll make use of, I suppose that's a better option as you get more bang for your buck.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #3
      I almost always go with statement credits, or if available, even better is an EFT to my bank. It's a very minor difference, but with most cards, any statement credits typically negate cash-back earnings. So for example, with my Citi Double-Cash (2% back), the statement credit nets out to 1.98% back. Getting the cash-back sent direct to my bank gets around that. But let's be honest... .02% doesn't really make a difference.

      With my Discover card, though, I'll occasionally do either the discounted gift cards (if I know it's something I'll use soon), or use it to cover purchases on Amazon (little different than a statement credit).
      "Praestantia per minutus" ... "Acta non verba"

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      • #4
        I've never cashed mine in, but I would assume I'll just end up using them as credit.
        Brian

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        • #5
          Originally posted by bjl584 View Post
          I've never cashed mine in, but I would assume I'll just end up using them as credit.
          Be careful. Sometimes rewards programs get cancelled and those with points lose them.

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          • #6
            Originally posted by bjl584 View Post
            I've never cashed mine in, but I would assume I'll just end up using them as credit.
            I'm hoping that's because it's a new account. Otherwise, there's really no benefit to letting it build up. It's not like it earns interest. Go ahead and cash it in.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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            • #7
              Another with statement credit, same as cash to me. Like many, my card offers different ways of redeeming rewards but these statement credit's offer the largest dollar value.

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              • #8
                Statement credit as well each.and.every.month.

                Assuming a $25 reward, rather than transferring $1000 from my checking to pay the cc in full, I transfer $975 after applying the $25 reward. Now I have $25 more dollars in my checking account.

                Good question and glad to see most folks align with taking the statement credit.

                Definitely dont let those rewards pile up too much as noted earlier. You just never know when a program will be terminated. Maybe you will be notified in advanced or maybe you wonít.

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                • #9
                  I used to send the money to my savings account, but recently started making it a statement credit.

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                  • #10
                    Got a Discover card as my only CC, I let the "cash back" build up throughout the year and then cash it in on the January statement.....helps with the extra expense of holiday gifts.
                    Gunga galunga...gunga -- gunga galunga.

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                    • #11
                      Originally posted by greenskeeper View Post
                      Got a Discover card as my only CC
                      Not sure that's the best thing to do if your only going to have one credit card. Too many places won't take it, Visa or MasterCard would be the way to go, especially for emergencies or when traveling.

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                      • #12
                        Originally posted by Drake3287 View Post

                        Not sure that's the best thing to do if your only going to have one credit card. Too many places won't take it, Visa or MasterCard would be the way to go, especially for emergencies or when traveling.
                        In 20+ years I've never had a place not take Discover. Besides, I always have the bank debit card to fall back on.
                        Gunga galunga...gunga -- gunga galunga.

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                        • #13
                          Originally posted by greenskeeper View Post

                          In 20+ years I've never had a place not take Discover. Besides, I always have the bank debit card to fall back on.
                          It was fairly common when Discover was first introduced. I think itís quite rare today. Iím not sure how it is in other countries though.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                          • #14
                            Originally posted by greenskeeper View Post

                            In 20+ years I've never had a place not take Discover. Besides, I always have the bank debit card to fall back on.
                            I agree. I've had more places refuse Amex than Discover.

                            We also do statement credits.
                            My other blog is Your Organized Friend.

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