Credit Card Rewards and Statement Credits

If you're the proud recipient of a hard-earned cash back reward or a statement credit, you may be wondering how to categorize it. 

It's an inflow, so categorize the transaction to Inflow: Ready to Assign.

An inflow to a credit credit account is categorized as Inflow: Ready to Assign.

Since it's an inflow to a credit card account, though, you won't see Ready to Assign increase—unless it created a positive balance on the card. The inflow simply reduces the balance owed on that card. This accurately reflects what happened in your account: the credit is applied, and now you owe less money.

If you're working to pay down debt, you're that much closer now!

But what if you had already budgeted for the entire balance on the card? Let's say you owed $475 before receiving a cash back reward for $75—and you already had the full $475 set aside in your Credit Card Payment category. Now you only owe $400.

Move that extra $75 to another category in your budget. Once you've done that, your Credit Card Payment Category Available amount will match your credit card account balance of $400.

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