Can You Use Points to Pay Your Credit Card Bill?
This guide explains how it works, its value, and when it makes sense.
How it works and what it is worth
Most rewards cards let you redeem points as a statement credit that reduces your balance, effectively using points to pay part of your bill. The catch is value: this typically nets about one cent per point, sometimes less, which is fine for cash back that is worth a cent anyway, but poor for transferable points that could be worth several cents transferred to travel partners.
The payment nuance
A statement credit is not always treated as your monthly payment. On many cards it lowers your balance but does not satisfy the required minimum payment, so you can redeem points as a credit and still need to make an actual payment to avoid a late mark. Do not assume redeeming points covers your due amount; check your card’s terms.
When it makes sense
Paying your bill with points is reasonable if the points are a flat-value cash-back currency, or if you have a small orphaned balance of points you will not use better elsewhere. But for valuable transferable points, redeeming against your bill wastes their potential, you would do far better transferring them for travel, as ranked in redemption options. Save the statement-credit route for cash back or last resorts.
- Many cards let you redeem points as a statement credit.
- It usually gives about a cent per point or less.
- That is below transfer or travel value for flexible points.
- A statement credit may not satisfy your minimum payment.
- It is fine for cash back, weak for transferable points.
Frequently asked questions
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