# How to Handle Credit Card Rewards and Statement Credits > Wondering how to categorize rewards or credits on your credit card? You'll typically use Inflow: Ready to Assign. Here's how inflows like these work in YNAB! Source: https://support.ynab.com/en_us/credit-card-rewards-and-statement-credits-a-guide-ryoRzYY0q Last updated: 2026-07-10T01:50:38.597Z Learn when and how to enter a credit card reward into YNAB. Follow the relevant steps based on how you choose to redeem it (to your credit card or checking account).  #### Was this a return or a refund? If so, categorize it directly to the spending category for the original purchase. Check out our [credit card refunds](https://support.ynab.com/en_us/credit-card-refunds-and-returns-H1J7qDWkj) article for more details on that specific process.  #### In This Article [Overview and Definitions](#overview) [How to Handle a Statement Credit (Reduces the Credit Card Balance)](#credit) [How to Handle Cash Rewards (Deposited to the Checking Account)](#checking) * * * ## Overview and Definitions Many credit cards offer rewards, including cash back, points, or other bonuses. Those rewards can often be redeemed for statement credits or cash deposits to a checking account. * **Cash Back Rewards** can generally either be redeemed as a **Statement Credit**, which reduces the balance you owe on the card, or a **Cash Reward**, which is deposited into your checking account. * **Reward points** are usually redeemed in the form of discounts or credits towards purchases, like flights or hotel bookings. They don't need to be tracked in YNAB.  [Back to Top](#backtotop) * * * ## How to Handle a Statement Credit (Reduces the Credit Card Balance) ### iOS If you choose to redeem your credit card reward as a **statement credit**, that reward will reduce the balance you owe on the credit card. It does not give you any new cash in your checking account—it just lowers your credit card balance. Here is how to enter it into YNAB: 1. Add a new transaction in your credit card account register. 2. Enter the amount. 3. Tap the drop down window directly under the amount, then tap _Inflow_. 4. Enter a payee that helps you remember where the reward came from (e.g. “\[Credit Card Company\] Statement Credit”). You’ll use this payee for any future statement credits you receive, too! 5. Categorize it to **Income: Ready to Assign**.  6. Save the transaction.  7. Double-check your Credit Card Payment category. If it has too much money after that statement credit, [move the excess money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) to Ready to Assign or another category of your choosing.  A credit card inflow categorized to Ready to Assign won't add cash to your plan—it only reduces the balance you owe on your credit card. It also won't change the amount you have set aside for payment or the amount in Ready to Assign (unless that inflow creates a [positive balance](https://support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo) on your credit card). It may **look** like cash has been added to your Credit Card Payment category, but the only number that will change is your balance on the credit card. If you have too much money in your Credit Card Payment category now, feel free to move it somewhere else in your plan. ### Android If you choose to redeem your credit card reward as a **statement credit**, that reward will reduce the balance you owe on the credit card. It does not give you any new cash in your checking account—it just lowers your credit card balance. Here is how to enter it into YNAB: 1. Add a new transaction in your credit card account register. 2. Enter the amount. 3. Tap the drop down window directly under the amount, then tap _Inflow_. 4. Enter a payee that helps you remember where the reward came from (e.g. “\[Credit Card Company\] Statement Credit”). You’ll use this payee for any future statement credits you receive, too! 5. Categorize it to **Income: Ready to Assign**.  6. Save the transaction.  7. Double-check your Credit Card Payment category. If it has too much money after that statement credit, [move the excess money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) to Ready to Assign or another category of your choosing.  A credit card inflow categorized to Ready to Assign won't add cash to your plan—it only reduces the balance you owe on your credit card. It also won't change the amount you have set aside for payment or the amount in Ready to Assign (unless that inflow creates a [positive balance](https://support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo) on your credit card). It may **look** like cash has been added to your Credit Card Payment category, but the only number that will change is your balance on the credit card. If you have too much money in your Credit Card Payment category now, feel free to move it somewhere else in your plan. ### Web If you choose to redeem your credit card reward as a **statement credit**, that reward will reduce the balance you owe on the credit card. It does not give you any new cash in your checking account—it just lowers your credit card balance. Here is how to enter it into YNAB: 1. Add a new transaction in your credit card account register with the amount as an **inflow**. 2. Enter a payee that helps you remember where the reward came from (e.g. “\[Credit Card Company\] Statement Credit”). You’ll use this payee for any future statement credits you receive, too! 3. Categorize it to **Inflow: Ready to Assign**.  4. Save the transaction.  5. Double-check your Credit Card Payment category. If it has too much money after that statement credit, [move the excess money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) to Ready to Assign or another category of your choosing.  A credit card inflow categorized to Ready to Assign won't add cash to your plan—it only reduces the balance you owe on your credit card. It also won't change the amount you have set aside for payment or the amount in Ready to Assign (unless that inflow creates a [positive balance](https://support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo) on your credit card). It may **look** like cash has been added to your Credit Card Payment category, but the only number that will change is your balance on the credit card. If you have too much money in your Credit Card Payment category now, feel free to move it somewhere else in your plan. [Back to Top](#backtotop) * * * ## How to Handle Cash Rewards (Deposited to the Checking Account) When you redeem your credit card rewards as a **cash reward**, you can choose to receive it as a deposit to your checking account. Follow these steps to [add your cash back as new income](https://support.ynab.com/en_us/how-to-add-income-and-other-inflows-H1ZNjfZJi#new-income) and assign that money anywhere you'd like. Just like a statement credit, use a payee that helps you remember where the reward came from (e.g. "Cash Back Reward" or "\[Credit Card Company\] Rewards"). [Back to Top](#backtotop) * * * ## Help Us Help You! Our Knowledge Base team reviews article feedback responses weekly, and we actively revise these articles to make them as helpful as possible. That's where you come in! Our articles are scored based on the _Yes_ or _No_ ratings received below. 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