Should You Redeem Points for a Statement Credit?

By Bryce Casson, Founder · Cardocrat · Updated August 2026
The short answer: Redeeming points for a statement credit or cash deposit usually values them at a cent each or less, which is the floor for transferable points that could be worth several cents transferred to travel. It is fine for fixed-value cash-back points and a mistake for high-ceiling travel currencies.

The floor-value redemption

Statement credits and cash deposits typically value points at a cent or below, and some programs pay even less for a statement credit than for a deposit. For transferable points, that throws away the travel ceiling that makes them valuable. It is the points equivalent of selling a stock at its lowest reasonable price. See what points are worth.

When it is acceptable

If your points are a flat cash-back currency designed to be redeemed for cash, a statement credit at a full cent is exactly what they are for and perfectly fine. The error is taking transferable travel points, which can be worth multiples of that, and cashing them out for a credit. See transferable points explained.

What to do instead

Reserve transferable points for travel transfers and use a dedicated cash-back card for spending money. If you must use points for cash, confirm you are getting at least a full cent and that the points have no better travel use coming. See when cash beats points.

See exactly what an award costs

Stop guessing at point values. Look up the real award price and live availability for a specific trip before you transfer.

Search award flights on seats.aero →

Frequently asked questions

How much is a point worth as a statement credit?
Usually a cent or less, and sometimes lower than a cash deposit. That is the floor value, far below what transferable travel points can return when moved to an airline or hotel partner.
Is redeeming points for a statement credit bad?
For transferable travel points, usually yes, because you lock in the floor value and lose the travel ceiling. For flat cash-back points meant to be cashed out, it is fine.
When should I redeem points for cash?
When your points are a fixed-value cash-back currency, or when you have no better travel use and are getting at least a full cent. Avoid cashing out high-value travel points.

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Bryce Casson

Written by Bryce Casson, Founder of Cardocrat. About the author and how we rank cards.