Your Amex, Chase and Capital One reward points may soon look different heres what customers should know

They’re not giving us enough credit.Americans have racked up credit card points in recent 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, the Wall Street Journal reported.Each point is worth about one cent, but one cent has lost about 20% of its purchasing power since 2018, according to the Bureau of Labor Statistics.

So, if you accrued 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 2017 while the Capital One Venture and Chase Sapphire Preferred have 50% bigger 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 cranking up the number of points needed to book flights and rooms, to keep up with the rising 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, the average price for an economy flight booked with points has surged by about 19% since 2019, according to aviation consultant IdeaWorks. Experts suggest using cards with easily transferable points and creating accounts with various partner companies to find the best deals.Spending points soon after they are earned can also help mitigate “pointsflation.” Overall, travelers are encouraged to be strategic in how they manage and redeem their points ...