Credit card rewards have become a core part of American spending habits. But economic pressures and new legislation could soon make those perks harder to get—or wipe them out altogether.
Key Facts:
- 82% of U.S. adults had a credit card in 2023, with balances totaling $1.18 trillion in early 2025.
- Rewards programs have grown into an “alternative currency” used for travel, daily expenses, and lifestyle upgrades.
- Consumers held over $33 billion in credit card rewards by the end of 2022.
- Airlines are already scaling back rewards as economic uncertainty grows.
- The Credit Card Competition Act in Congress could cut interchange fees that fund many of these programs.
The Rest of The Story:
Rewards programs have become a key reason why many Americans use credit cards.
Whether it’s points toward a flight or cash back on groceries, these perks offer tangible value.
Business Insider reports that for many, rewards now serve both emotional and financial purposes—offering relief during tough times and access to experiences otherwise out of reach.
So Yeon Chun, a professor at INSEAD, called rewards a “dual-purpose behavioral currency,” highlighting their role in preserving lifestyle amid inflation.
As of 2022, Americans had earned over $33 billion in rewards.
But these benefits could be in jeopardy.
Economic concerns, combined with political action in Congress, could lead to reduced or restructured programs.
Airlines are already requiring more points for flights, and other reward providers are quietly making redemption harder.
A pending bill, led by Senators Durbin and Marshall, could slash the interchange fees that fund most rewards, causing some programs to disappear entirely.
Commentary:
Credit card rewards aren’t just nice extras—they’re the main reason many Americans choose one card over another.
Whether it’s airline miles, hotel stays, or 2% back at the gas pump, these programs make everyday spending feel like a win.
For many, it’s how they afford vacations or splurge on something special without added cost.
Others rely on cash back just to offset inflation or make ends meet.
That makes these rewards a form of financial planning, not just a luxury.
When rewards are cut back—or the value quietly shrinks—families feel it.
It’s no longer just about missing a bonus flight; it’s about losing support they’ve come to depend on.
Airlines have already started raising the bar, requiring more points for the same trips and limiting access to lounges. That’s a sign of things to come.
If the Credit Card Competition Act passes, rewards may dry up fast.
Even if the bill fails, economic headwinds could still cause issuers to reduce perks to preserve margins. The big issue? Devaluation.
Points and miles are worth less today than even a year ago. That trend will likely continue.
Holding on to rewards might feel smart, but it’s probably not. Inflation and company policy shifts can wipe out years of savings in an instant.
If you’ve been stockpiling points for a future trip, it might be time to use them.
Many travelers and cardholders have already learned the hard way that “someday” can turn into “never” if programs change without warning.
We’re also seeing more conditions added—like rotating bonus categories and shorter expiration dates—which can make using rewards a game of timing and luck.
Bottom line: If your card gives you benefits today, you may want to cash them in before tomorrow’s rules change the game.
The Bottom Line:
Credit card rewards programs are under pressure from both economic forces and new legislation.
While they’ve long helped Americans afford travel and offset costs, their future is uncertain.
Consumers who’ve built up large rewards balances should consider using them soon.
The value of those points could fade fast, or disappear altogether.
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