By Bryce Casson, Founder · Cardocrat · Updated June 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.
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.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
