Your Amex, Chase and Capital One reward points may soon look different — here’s what customers should know
They’re not giving us enough credit.
Americans have racked up credit card points in rꦯec❀ent years — but points are losing value.
Last year, cardholders racked up more than $34 billion worth of📖 points, up 70% from 2019, according to annual reports from card issuers American Express, Capital One and JPMorgan Chase, .
Each point is worth about one cent, but one cent has lost about 20% of its purchasing power since 2018, according to the B💝ureau of Labor Statistics.
So, if you accrueꦕd 50,000 points with a major credit card in 2020, those points are now only worth approximately 41,300.
Credit♉ card issuers have been generous in offering points since the pandemic, boosting welcome bonuses and offering more points on everyday purchases instead of upping the actual value of♊ the points.
Amex Platinum and Gold cards now come with roughly twice as many points in 2024 as they did in 2🃏017 while the Capital One Venture and Chase Sapphire Preferred have 50% bigger sign-up bonuses, the WSJ rep🍌orted.
Things get more complicated when you decide to transfer those points to frequent f🅰lyer or hotel loyꦜalty programs.
Each airline and hotel has its own unique way of valuing points, and many are cranking up the number of points neede🍒d to book flights and rooms, to keep up with the risingꦅ prices happening thanks to inflation.
The Transportation Department launched a probe into how airlines value points in September, but the results of that likely won’t impact point pricing any time soon.
For example, t🐻he average price for an economy fli🅘ght booked with points has surged by about 19% since 2019, according to aviation consultant . ;
Experts suggest using cards with easily transferable points and creating ac📖counts with various parཧtner companies to find the best deals.
Spend💧ing points soon after they are earned can also help mitigate “pointsflation.”
Overall, travelers are encouraged to be strategic in ho🉐w they manage and redeem their points in light of these changiꦅng values.
