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However, while card issuers don’t explicitly misrepresent the value of these statement credit benefits, they do project optimal scenarios in which cardholders capture every dollar of credit available. In practice, most cardholders will capture only a fraction of that value.
Rather than accept these benefits at face value, I advocate that cardholders assess for themselves the value of credits based on their own needs, interests and circumstances.
Why I don’t take statement credit benefits at face value
Given the choice between a statement credit and its cash equivalent, I would always choose cash. Statement credits are less flexible and add complications you don’t get with cash. I also discount statement credits for other, more specific reasons.
I don’t always need or want the credits I’m offered
Redeeming credits isn’t always easy
The easier a credit is to redeem, the more it’s worth to me. Unfortunately, many statement credit benefits limit how, where and when they can be used, which makes redeeming their full value more difficult.
However, that benefit is split into two semiannual $250 credits, which apply only to stays of two nights or longer. That means I can’t redeem the full amount at once nor put it toward single-night stays. Those constraints make the benefit much less valuable to me than one $500 credit that I could redeem against any hotel stay.
Finally, redeeming statement credit benefits takes effort. Some credits require enrollment prior to use, and I have to keep track of unused portions so they don’t expire. Occasionally, I run into credits that don’t work as they’re supposed to, which means having to contact my card issuer to get credited manually. These are minor concerns, but they widen the gap in value between statement credits and cash.
Using credits may mean passing up a better deal
However, Costco routinely sells Uber gift cards for around 20% off, so I could buy $200 of Uber credit for a few cents under $160.
Likewise, I utilize the $10 monthly credit for wireless phone service with The Business Platinum Card® from American Express, even though it only earns me 1 point per dollar compared to the 5 points per dollar I could earn with my Chase Ink Business Cash card. After factoring in additional perks like airport lounge access, the card stands out as a definite keeper for me. following sentence: “The cat jumped onto the table and knocked over a vase.”
The vase was knocked over by the cat as it jumped onto the table.