Credit Card Points

How about those credit card points? If you hoard credit card points waiting for that big trip or holiday with family, you may be in for a surprise. Cardholders have been building a stockpile of points with more than $34 billion in 2023, up 70% from 2019, but if you are hoarding points, inflation has bit about 20% of its purchasing power since 2018. This means that if you accumulated 50,000 Capital One points in 2020 and have not spent them, they are now worth about 41,300 points. Take an airline ticket for example: The average price for an economy flight purchased with points has increased about 19% since 2019. 

The point is that your credit card points are losing its value, so book that trip, redeem it for cash, but don’t hoard your credit card point like stuffing cash under the mattress, because it will lose its value.

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