Importance of Using Loyalty Points

Points hoarding can lead to points inflation, making loyalty points less valuable over time. Airlines are selling more miles to credit card companies, increasing the number of points in circulation. Therefore, it is advisable to use loyalty points sooner rather than later. Southwest Airlines has recently announced that their points will be worth less when redeemed starting in 2024. This trend applies to airlines, but car rental programs are becoming less valuable, while hotel loyalty programs can still be beneficial. Credit cards that offer points for various purchases provide flexibility and allow for cashback options, which can be used for any expenses.