ATLANTA — Those credit card points and airline miles in your account may not stretch as far as they used to. Financial experts say inflation is quietly undermining the value of many credit card rewards.
According to Bankrate’s Ted Rossman, the way some loyalty programs are structured makes the problem worse.
“Airline and hotel loyalty programs are increasingly designed around how much you spend rather than how much you fly or stay,” he explained.
Rossman says that means a flight that once required 25,000 miles could now cost 40,000 or even 50,000 miles. Many cards also have spending caps or reward limits that haven’t changed in years, even as prices have climbed.
He also warns that credit card issuers and their merchant partners can adjust redemption values at any time; and unlike savings accounts, reward balances don’t earn interest.
“Don’t hoard reward points and miles,” Rossman advised. “It’s important to both earn and burn strategically.”
Experts say the best strategy is to redeem rewards regularly and keep an eye on changing redemption rates, especially for travel programs where prices are closely tied to inflation.
WSB’s Sabrina Cupit contributed to this story
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