Your Amex, Chase and Capital One rewards points may soon look different — here’s what customers need to know

They are not giving us enough credit.

Americans have been racking up credit card points in recent years — but the points are losing value.

Last year, cardholders accumulated 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, the Wall Street Journal reported.

Each point is worth about a cent, but a cent has lost about 20% of its purchasing power since 2018, according to the Bureau of Labor Statistics.

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

Credit card issuers have been generous in offering points since the pandemic, increasing welcome bonuses and offering more points for everyday purchases rather than increasing the actual value of points.

The Amex Platinum and Gold cards now come with roughly twice as many points in 2024 as in 2017 while the Capital One Venture and Chase Sapphire Preferred have 50% larger sign-up bonuses, the WSJ reported.

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

Each airline and hotel has its own unique way of valuing points, and many are increasing the number of points required to book flights and rooms to keep up with inflation-driven price increases.

The Department of Transportation launched an investigation into how airlines value points in September, but the results of that likely won’t affect point prices anytime soon.

For example, the average price for an economy flight booked with points has increased by about 19% since 2019, according to aviation consultant IdeaWorks.

Experts suggest using cards with easily transferable points and creating accounts with different partner companies to find the best deals.

Spending points soon after they are earned can also help mitigate “points inflation.”

In general, travelers are encouraged to be strategic in how they manage and redeem their points in light of these changing values.