Paying for subscription streaming services with credit card rewards
Quick insights
- It can be easy to lose track of how much you're spending if you have multiple streaming service subscriptions, but your credit card rewards could help offset some of the costs.
- You may be able to redeem your credit card points or cash back for statement credits to cover these recurring charges.
- There are some credit cards that offer specific statement credits toward eligible subscription streaming services.
It's common to lose track of how many streaming subscriptions you're actually paying for until the monthly charges hit your account. Between the playlist you listen to in the gym and the service you watch for family movie night, the costs can quickly add up. However, you might be able to use the points or cash back earned on your rewards credit cards to cover your favorite subscriptions.
Tracking your digital entertainment costs
Taking a closer look at your digital entertainment costs may be a helpful step in managing your monthly budget. When you sign up for another streaming service to watch a specific show, you might overlook how those small fees accumulate over time.
For instance, you might pay for a music service to listen to podcasts during your commute, plus two different video subscriptions for weekend movie nights. Reviewing these charges regularly may help you identify which services you actually use and which ones you might want to fund using your existing credit card points or cash back.
Ways to use credit card rewards for streaming
Your credit card rewards program might offer a few different redemption methods for these streaming bills.
Depending on your credit card benefits, you might consider using your credit card points or cash back to fund your subscriptions. Here are a few methods you may consider:
- Statement credits: A statement credit is money credited to your account that reduces your overall balance. You might pay for your streaming service with your credit card and then redeem your points or cash back for a statement credit to cover that specific charge.
- Digital gift cards: Some rewards programs allow you to redeem points for gift cards from specific entertainment merchants. You could then apply the gift card balance directly to your streaming account.
- Direct payment options: Depending on your credit card issuer, you may have the option to link your rewards account directly to certain digital platforms to pay with points at checkout.
Credit card statement credits for streaming
Reviewing your specific credit card benefits might reveal perks designed to offset your digital entertainment costs. Some credit cards may include various statement credits toward select subscription streaming services.
If you hold a premium rewards credit card, you may want to check your benefits guide. These credit cards often feature annual or monthly statement credits that automatically reimburse you when you use the credit card to pay for eligible music, TV or movie subscriptions.
For example, if your credit card offers a monthly streaming credit, you could use that credit card to pay your subscription. To use this benefit, you typically need to pay for your streaming subscription directly with the eligible credit card. When the charge posts to your account, the credit card issuer applies the statement credit to help cover the cost of the service.
Earning rewards on streaming charges
Setting up automatic payments for your streaming services can help you avoid missing a billing cycle. When you link your subscriptions to a rewards credit card, you might get cash back on streaming services or earn points on those charges.
Some credit cards offer rewards or bonus categories specifically for streaming purchases. By routing your digital entertainment bills through a credit card that rewards those categories, you could potentially increase your earnings without changing your viewing habits.
The bottom line
Digital entertainment is a staple in many households, but the recurring costs can add up quickly. Using your credit card points, cash back or statement credits could provide an efficient way to help offset these monthly fees. You might consider reviewing your rewards program to help you enjoy your subscriptions while keeping your budget on track.
