Inflation Could Be Reducing the Value of Your Credit Card Rewards. Here's What to Do

We’ve all likely heard the adage, “Good things come to those who wait.”

Well, that might not be true when it comes to your credit card rewards.

The consumer watchdogannounced this weekthat it’s cracking down on credit card issuers for devaluing their rewards.

Other factors like high interest rates and inflation also play a part in the devaluation of rewards.

So what can you do to ensure you’re getting a good value?

Should you hold onto your credit card rewards?

People who redeem their rewards quickly tend to get the most value overall due toinflationandrewards program devaluations.

Of course, quickly redeeming rewards may not make sense in every situation.

Saving up points or cash back tocover your holiday gift listcan take time.

And there are ways to help you preserve the value of your rewards.

Also, consider a card that earnsflexible rewards.

you could even book each airfare with your individual point balances.

Then you would need 15,000 points instead of the 10,000 you had saved.

Also, redeeming rewards for statement credits can help reduce your overall balance.