AMEX, Chase and Capital One reward points may soon look different – here’s what customers need to know

They are not giving us enough credit.

Americans have accumulated credit card points in recent years – but points are losing value.

Last year, card holders collected more than $ 34 billion points, with 70% from 2019, according to annual reports by American Express card issues, Capital One and JPMORGAN Chase, reported Wall Street Journal.

Each point is worth about one hundred, but one hundred has lost about 20% of its purchasing power since 2018, according to the Bureau of Labor statistics.

So if you have accumulated 50,000 points with a main credit card in 2020, those points are now only worth approximately 41,300.

Credit card issues have been generous in providing points from pandemia, increasing welcome rewards and offering more points in daily purchases instead of raising the current value of points.

Amex platinum and gold cards now come with approximately twice as much points in 2024 than those in 2017 while Capital One Venture and Chase Saphire preferred 50% larger rewards of registration, WSJ reported.

Things become more complicated when you decide to transfer those points to frequent flight loyalty or hotel programs.

Eachdo airline and hotel have its own unique way of evaluation points, and many are looking for the number of points needed to reserve flights and rooms, to continue with the increase in prices that occur with inflation.

The Transport Department launched an investigation at the airline value points in September, but the results of this are likely to affect the prices of points at any time soon.

For example, the average price for an economy flight book has increased by about 19% since 2019, according to the Ideworks aviation adviser.

Experts suggest using light -transferred light cards and creating accounts with different companies to find the best deals.

Expenditure points immediately after being earned can also help soften the “point points”.

In general, travelers are encouraged to be strategic in the way they manage and redeem their points in the light of these values ​​of change.