If you’re counting on your credit card points to deliver big rewards, you may want to cash in sooner rather than later. In 2023, US cardholders racked up over $34B in credit card points — a 70% jump from 2019. But after years of higher inflation, those hard-earned points and miles are losing value, leaving less bang for your buck.

• Since 2018, the value of unspent credit card points has dropped by 20% — which means 50K Capital One reward points earned in 2020 now only have the buying power of 41.3K points.
• Airlines and hotels, facing high demand and unused points, have devalued rewards. An average economy flight now requires 19% more points than in 2019.

Pointsflation takes flight: To address inflation and point devaluation, credit card companies are offering bigger sign-up bonuses and more points for everyday purchases. For example, the Amex Platinum now offers nearly double the points compared to 2017, while cards like Capital One Venture and Chase Sapphire Preferred have increased sign-up bonuses by 50%. However, annual fees for premium cards have also gone up, ranging from $400 to $695, making it more expensive to maintain these benefits.