Amex statement credits vs statement balance

[Anonymous]

This month I cashed in around $40 in cashback as a statement credit on my BCP. Now, I am getting ready to pay the card in full to a $0 balance. The thing is, my remaining statement balance is about $40 higher than my current actual blance.

If I pay off the actual balance, and the card reports $0 on my statement due date, that should count as PiF even though the remaining statement balance will be around $40 right?

[Anonymous]

Right, although the term PIF technically refers to paying the statement balance in full to maintain interest free grace period, little different from paying the actual balance to report $0 statement balance.

The way Amex explained to me when I had the same question last year is that cashback credit applies to the current cycle (new charges), it can't be used for minimum or previous statement. When you pay the entire actual balance (statement balance + current posted charges), it will included the cashback credit amongst current charges.

[NRB525]

Should be, yes. I get adjustments down, on my PIF autopay when Statement credits on spend offers are already automatically applied.

[Anonymous]

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@Anonymous wrote:

The way Amex explained to me when I had the same question last year is that cashback credit applies to the current cycle (new charges), it can't be used for minimum or previous statement. When you pay the entire actual balance (statement balance + current posted charges), it will included the cashback credit amongst current charges.

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The card has no charges on it this cycle, just a small remaining statement balance from last month. It sounds like from what you said, it should still work out ok though.

Thanks

[Anonymous]

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@NRB525 wrote:
Should be, yes. I get adjustments down, on my PIF autopay when Statement credits on spend offers are already automatically applied.

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Are you sure about this? I just went back and double checked my SimplyCash card, my PIF autopay (executed on 1/20) was the same statement balance from December even though I have quite a few credits posted on the current cycle from spending offers.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

The way Amex explained to me when I had the same question last year is that cashback credit applies to the current cycle (new charges), it can't be used for minimum or previous statement. When you pay the entire actual balance (statement balance + current posted charges), it will included the cashback credit amongst current charges.

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The card has no charges on it this cycle, just a small remaining statement balance from last month. It sounds like from what you said, it should still work out ok though.

Thanks

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Yes, even though you have no current charges, you have the $40 credit posted so your current cycle balance is -$40, actual balance = current cycle balance + previous statement balance.

[Anonymous]

Ah! OK. That makes sense now, thanks.

I get that the credits can't go towards minimum payment, but I really wish they would deduct it from the statement balance as some of my other cards do. It would make instances like this far more intuitive.

[Anonymous]

Hold on a second, after thinking it over, I'm wrong, you need to pay the full remaining statement balance and let the next statement cut with -$40 balance in order to retain your grace period not get hit with interest, because the cashback credit can't be applied backwards, you would have been ok if you had new charges and the credit was used up against the new charges. I called and confirmed this with Amex before making this post.

[Anonymous]

Ok, that is a crazy policy. I had to double verify that with Amex myself, and it is indeed the case. Glad you chimed back in.

lol so my statement balance next month will be -$41.41.

It's so weird. Why have the option to redeem for "statement credit" when it's actually just a current cycle reduction credit that has nothing to do with reducing the statement balance at all?

[Anonymous]

I also confirmed that it applies to all statement credit not just cashback redemptions.