Unused credit card rewards from American Express, JPMorgan Chase, and Capital One total billions of dollars. But the value is eroding.
Wall Street Journal cites annual reports to report that the financial giants customers will have unused rewards worth $34 billion by 2023.
The value of these rewards has fallen due to the inflation as services and goods now cost more than before.
If someone accumulated 100,000 Capital One Points in 2020, and then left them alone, they’d have a stack that is worth about 82.600 points.
Hotels and airlines have quietly changed the amount of points needed for redemptions by using dynamic pricing models that tie the prices to current cash rates.
According to an IdeaWorks study, the total number of miles or points needed to book flights has increased by 28% in the last year.
In recent years financial firms increased their sign-up bonus, but decided to not increase the overall value of the points, which has been around 1 cent for many decades.
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