While 2024 gave many credit cardholders the opportunity to earn incredible rewards or cash in for big travel plans, they also faced rising debt balances and an ever-changing interest rate environment.

As we approach 2025, there’s still uncertainty about what the future holds — new policies could affect the current state of card fees and rewards programs, interest rates will continue to change, and the value of benefits is constantly evolving.

Here are a few trends and predictions we’re looking for in the year ahead.

Since the Federal Reserve began lowering its target federal funds rate range earlier this year, we’ve already seen some credit card interest rates go down. Of course, rates haven’t lowered enough to ease the burden for cardholders with high-interest credit card debt.

In the new year, experts expect the Fed to cut rates further — but we’ll have to wait and see just how quickly they’ll do so and how low rates will go.

At the 2024 Yahoo Finance Invest conference in November, Federal Reserve Bank of Minneapolis president Neel Kashkari said the Fed will “have to wait and see what the data says” to determine its interest rate decisions in 2025. Recently, some expert predictions say the frequency of rate cuts may slow in 2025.

If the Fed does cut rates more, you will likely see interest rates on credit cards to continue falling too. But that doesn’t mean you’ll see a significant difference in your APR. Average credit card interest rates are still upwards of 21%. Even if the Fed’s target rate range falls by a full percentage point or more, you shouldn’t wait to get started on paying down your balances — that won’t make a significant difference in your APR, and waiting can leave you with even higher mounting debts.

Even as interest rates fall, credit card debt balances and delinquencies are growing. The most recent report from the New York Federal Reserve on Household Debt and Credit shows that Americans have an outstanding $1.17 trillion in outstanding credit card balances, 8.1% higher than a year ago. While credit card delinquencies have improved slightly, 8.8% of American card balances still became delinquent (or were more than 30 days late) in the third quarter of 2024.

“Looking ahead to 2025, this upward trend in credit card balances may continue,” Barry Coleman, vice president of program management and education for the National Foundation for Credit Counseling, said in an email to Yahoo Finance.

The 2025 Consumer Credit Forecast from TransUnion also points to balances and delinquencies increasing but at a slower pace.

The credit bureau projects credit card balances will increase by 4.4% year over year by the end of 2025 (down from 18.5% in 2022 and 12.6% in 2023). Delinquencies, too, are projected to increase much more slowly in 2024 and 2025 than they did in 2022 or 2023.

The exact trajectory of credit card debt levels will depend on evolving economic conditions, Coleman says, like interest rate changes and consumer spending habits. “However, moderating inflation could reduce the reliance on credit cards for covering everyday household expenses. Additionally, with credit card issuers not showing significant signs of tightening lending standards, credit usage may remain high.​”

A few travel programs have already announced changes that will affect cardholders starting in 2025.

First is cardholder access to Delta SkyClubs. As of Feb. 1, 2025, the following limits will apply for certain American Express cardholders:

Delta SkyMiles® Reserve American Express Card and Delta SkyMiles® Reserve Business American Express Card: 15 visits to the Delta SkyClub per Medallion year (earn unlimited access after spending $75,000 on your card per calendar year). This is an increase from the previous 10 allowed visits.

The American Express Platinum Card® and The Business Platinum Card® from American Express: 10 visits to the Delta SkyClub access per Medallion year (earn unlimited access after spending $75,000 on your card per calendar year). This is an increase from the previous six allowed visits.

Alaska Airlines is changing its loyalty program too. The airline’s rebooted rewards program is getting several updates, from new milestone rewards as you work toward elite status to the ability to earn elite-qualifying miles on award flights with Alaska and its partners.

Plus, cardholders get an extra boost. In addition to the miles you’ll earn on spending with the Alaska Airlines Visa® credit card, you’ll also earn one elite-qualifying mile for every $3 in purchases (up to 30,000 EQMs per calendar year) starting on Jan. 1, 2025.

If you’re a Capital One cardholder, you may face limited access to Capital One Lounges in 2025. Starting Jan. 1, you’ll no longer have complimentary access to Capital One Lounges using a Capital One Venture Rewards Credit Card or Capital One Spark Miles for Business card. However, you can still pay $45 to access Capital One Lounges instead of the standard $90 rate.

Find the right card for your 2025 travels: The best travel credit cards

Cardholders are still at risk of having their identities stolen and new accounts created in their names — and that risk isn’t going anywhere in 2025. If you fall victim to account fraud, it could not only cost you money but also put your credit score at risk. Data breaches, too, can still make you vulnerable to identity theft. When your username and password for a site is breached, fraudsters can use your information to create new accounts in your name.

“Those risks are real, and they're going to continue into 2025 and beyond,” said Eva Velasquez, president and CEO of the Identity Theft Resource Center.

And the risk isn’t just online. Even as mobile wallets and contactless payments have made point-of-sale transactions much safer, you should always stay aware of your surroundings and protect access to your card info.

“We're also starting to hear more about what I call kind of traditional tactics, or old-school tactics making a comeback,” Velasquez said. “It's things like the theft of physical cards, either through getting them out of your wallet or even out of the mail, just stealing mail, that still happens.”

Read more: 6 tips to avoid credit card fraud and scams

Even as cardholders may get a slight break from high interest rates, they’ll still have fees to deal with in the new year.

Interchange fees are a hot topic among banks and merchants who take payment via credit cards. These “swipe fees” are paid by merchants to credit card networks to process each card transaction.

Credit card networks — the largest in the U.S. are Visa and Mastercard, though American Express and Discover are major networks, too — tend to update these fees regularly. While fees charged by card networks may not always directly impact you as a cardholder, they can end up costing you if merchants raise purchase prices as a result. On the flip side, these fees may be used by issuers to offset the cost of rewards and benefits.

The Credit Card Competition Act, first introduced in Congress in 2022, could impact swipe fees in the future. It would require credit card issuers to allow transactions over at least two networks (and only one of those can be Visa or Mastercard). There’s been little movement on the bill this year, and it hasn’t been brought to vote — though it was the subject of a recent November 2024 Senate Judiciary Committee hearing.

Related: Credit card fees explained — 8 types you should know

We wouldn’t be surprised to see higher annual fees in the year ahead too. There’s no guarantee that annual fee hikes are in store, but as the costs of providing rewards and benefits increase for issuers and their partners, so could your annual fee.

We already saw increasing annual fees in 2024. One of the most notable, for example, was the American Express® Gold Card’s fee, which rose from $250 to $325 (see rates & fees) — while also adding several new benefits to help savvy cardholders offset the cost.

Look out for more premium credit cards, too, especially among co-branded travel cards. Alaska Airlines, for example, has teased a new premium credit card option that’s expected to roll out next summer.

And as recently as November, Delta Air Lines President Glen Hauenstein hinted toward potential future premium card options within the airline’s partnership with Amex: “...okay, we've got the Reserve card out there, but is there even a better card? So we'll put our thinking caps on that. Never stay satisfied.”

See the best credit cards with no annual fee

In 2024, there were some big shakeups from major banks and travel companies, like Capital One’s proposed acquisition of Discover and the merger between Alaska Airlines and Hawaiian Airlines. We haven’t yet seen the direct impact from those deals, but they could become more clear for cardholders in the new year.

For example, adding Capital One cardholders to Discover’s payment network could make a huge difference in the size of the network over the other major U.S. competitors (Visa, Mastercard, and American Express). However, the deal between the two banks is still moving through the regulatory process and hasn’t yet been finalized.

So far, Capital One says it will continue to offer Discover credit cards. After the acquisition, though, there’s always the chance for new card offerings as well as different features and benefits on existing cards.

Read more: How Capital One’s acquisition of Discover could affect you

Alaska Airlines and Hawaiian Airlines aren’t credit card companies, but each has loyalty programs and co-branded credit cards for customers. The loyalty programs will merge eventually, though the airlines say more details will be announced in mid-2025. Cardholder benefits (free checked bags, companion fares, etc.) apply only to the airline you opened the card with. In the meantime, you can transfer miles at a 1:1 ratio between the programs and get an instant status match (or a potentially higher status when you combine elite-qualifying miles you’ve earned between programs).

And there’s always the potential for more corporate movements to come. Reports earlier this year pointed to JP Morgan Chase in talks with Apple about taking over its credit card from Goldman Sachs, for example.

This article was edited by Alicia Hahn

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.

The average credit card interest rate is 22.80%, according to November 2024 Federal Reserve data — a significant jump from the average 16.98% rate in 2019. However, the current credit card interest rates you’ll pay can vary wildly, depending on the type of credit card and your creditworthiness.

Understanding how credit card annual percentage rates (APR) work can help you minimize your interest costs and even potentially eliminate them altogether. Here’s a look at historic and current credit card rates, and how to lower what you pay in interest.

In this article:

Current credit card interest rates by card type

Average credit card interest rates by credit score

Historic credit card interest rates

How credit card interest works

Why your credit card's interest rate matters

How to lower your interest rate

How to avoid credit card interest

There are several different types of credit cards from which you can choose, some of which charge higher rates than others. In particular, store credit cards and cards designed for people with limited or poor credit tend to charge the highest rates.

We looked at more than 150 of the top credit cards across seven categories to give you a quick summary of the average APRs for some of the most common types of consumer credit cards:

Note that the starter credit card category includes both student credit cards and beginner-friendly cards available to non-students. Additionally, some credit cards offer introductory 0% APR promotions on purchases, balance transfers, or both. In those cases, our analysis only includes the standard purchase APRs.

Read more: What is a good interest rate on a credit card?

Your credit score not only influences your credit card options but also your card's APR. While many store and secured credit cards offer the same interest rate to all cardholders, others offer a range of APRs, with lower rates reserved for borrowers with higher credit scores.

Here are the average interest rates by credit score range, based on the most recently available data:

Read more: How to boost your credit score with a credit card

Credit card interest rates have increased significantly in recent years due to the Federal Reserve's attempts to combat inflation and other factors. Here's how APRs have changed over the past decade:

Credit card interest works differently than other types of consumer debt. This is primarily because, unlike installment loans, credit cards don't have a set repayment term. Here's what you need to know.

With very few exceptions, most credit cards charge a variable interest rate. This means that your card's interest rate can fluctuate over time.

Credit card issuers usually use the Wall Street Journal prime rate as their benchmark and add a margin on top of it. As the prime rate fluctuates, expect your credit card's interest rate to follow suit.

Credit cards often list multiple APRs for different types of transactions. While those APRs can vary by card — and some cards may not charge certain types of APRs — here are some of the common ones you may come across:

Purchase APR: This interest rate applies to any purchase you make with your card.

Balance transfer APR: This interest rate applies to balances you transfer from another credit card. It's generally the same as the purchase APR.

Introductory APR: Some credit cards offer an introductory low or 0% APR on purchases, balance transfers, or both. Depending on the card, the 0% APR promotion can last anywhere from six to 20+ months, after which the card's standard APR applies.

Cash advance APR: This interest rate applies only to cash advances made with the card.

Penalty APR: Credit card issuers may charge this higher rate if you miss a payment by 60 days or more. The penalty APR will supersede the purchase APR for at least six months.

Most credit cards offer a grace period on purchases, which is a period of 21 or more days between your monthly statement date and due date. If you pay your statement balance in full by your monthly due date, your card issuer won't charge you interest.

However, if you don't pay in full, your card issuer will charge interest on your remaining balance and revoke your grace period on new purchases until you pay your balance in full. In other words, interest will apply on new purchases from the transaction date, further increasing your costs.

Calculating credit card interest on your own can be complicated, primarily because credit card issuers compound the interest every day. In other words, interest charged for a particular day will also include accrued interest from previous days in your billing period.

If you want to estimate potential interest costs, however, here's how you can do it:

Determine your daily interest rate: To do this, take your APR and divide it by 365. For example, if you have a 22.36% interest rate, your daily rate would be 0.062%.

Calculate your average daily balance: Take your monthly balance and divide it by the number of days in your billing cycle.

Multiply your daily rate by your daily balance: Once you have your rate and balance information, you'll multiply them to get an estimate of what you'd owe. With a $3,000 daily balance and a 0.062% daily interest rate, for instance, that's a total of $1.86 in interest per day.

Finally, you'll multiply your daily interest amount by the number of days in your billing cycle. In this case, you'd multiply $1.86 by 30, giving you an estimated $55.80 in interest.

Credit card debt is one of the most expensive forms of consumer debt, and if you're not careful, it can have a devastating impact on your financial well-being.

For example, the average credit card balance is $6,501, according to Experian, one of the three national credit bureaus. Let's say you have that much debt on a credit card with the average 22.63% interest rate.

If your monthly payment is $250, it'll take you 37 months to pay off your balance, and you'll end up paying roughly $2,520 in interest over that time — nearly 40% of the original balance.

If your interest rate were 18% instead, you'd be debt-free after 34 months, and you'd pay a total of $1,801 in interest — a savings of $719.

If you have a credit card with a high APR and you carry a balance from month to month, there are a few steps you can take to try to reduce it:

Just ask: Credit card issuers sometimes offer promotions to existing cardholders, which may allow you to reduce your interest rate for a period of time. You may even qualify for a 0% APR promotion on balance transfers, allowing you to move debt from a high-interest credit card and pay it off interest-free over time. Just keep in mind that these offers typically include a balance transfer fee, which can range from 3% to 5% of the transferred amount.

Apply for a new card: If you're still using your first credit card, your APR may be high because your credit was less than stellar when you applied. Depending on what your credit profile looks like now, applying for a new card could help you secure a lower interest rate. You could also take advantage of an introductory 0% APR promotion to pay off purchases or balance transfers over time with no interest charges.

Improve your credit: If you have a high APR because your credit needs some work, take a look at your credit reports to identify areas you can address. Then, take concrete steps to improve your credit score and gain access to more affordable financing options.

If you carry some of your balance from month to month, your card issuer will charge interest on the balance you carried over and revoke your grace period until you pay off past and new purchases in full. According to the American Bankers Association (ABA), about 43% of credit card users carry over a balance at least once per quarter.

However, if you pay off your balance in full during a 0% APR promotional period or before your monthly due date, you'll avoid interest charges entirely. ABA data show that roughly a third of credit card users pay in full every month.

As a result, it's important to prioritize paying your balance in full each month. The best way to do this is by getting on a budget to ensure you don't spend more than you earn. You can also set up automatic payments to cover your full monthly statement balance.

If you already have a sizable balance, evaluate different strategies to pay off your credit card debt, so you can set yourself up to pay in full going forward.

Current credit card interest rates are near an all-time high, but there are ways you can potentially reduce your rate, minimize your interest charges, and avoid paying interest altogether. If you use a credit card regularly, try to avoid overspending and prioritize paying your balance in full each month.

If you're carrying a balance from month to month on one or more credit cards, consider putting a hold on your credit card spending as you develop a plan to pay off your balances over time.

This article was edited by Alicia Hahn

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.

Credit card issuers can no longer charge “excessive” late fees for credit cards, thanks to a recent ruling from the Consumer Financial Protection Bureau (CFPB). Previously, a late payment may have cost you upwards of $30. Now? You won’t pay more than $8.

The agency said late payment fees grow larger and larger each year and cost cardholders billions. They’re one example of “junk fees” currently overrunning our economy, according to the White House.

While capping late fees could save you money over time, they’re not the only credit card fees that may be hiding in your monthly statements.

As consumers, we pay fees all the time — for any number of transactions, services, and other parts of daily life. When companies charge unnecessary fees or aren’t transparent about the amount, they’re more likely junk fees.

Junk fees can increase the real cost of borrowing money or paying for a good or service. They also make it more difficult for you to compare different options fairly, according to the CFPB.

A recent White House memo describes them similarly: “These junk fees, which are often not disclosed upfront and only revealed after a consumer has decided to buy something, obscure true prices and dilute the forces of market competition that are the bedrock of the U.S economy.”

The junk fees under scrutiny from the government can be found across many industries. They include everything from service fees from online ticket sellers, for example, which don’t appear until you’re ready to check out, to overdraft and non-sufficient funds fees charged by your bank.

If you’ve ever bought a house, you may have also encountered junk fees in the form of closing costs — added charges for inspections, insurance, and more can vary and make the actual cost of taking on a mortgage loan much higher than you initially anticipated.

The latest moves to mitigate late fees may offer savings for consumers, but these aren’t the only credit card fees that can cost you.

When you don’t pay at least the minimum toward your card balance by the due date, you may be charged a late fee. Until now, these fees often range up to $40 per late payment. On average, late fees from major issuers were $32, according to the CFPB. Late fees now are capped at $8 and there’s no longer an annual inflation adjustment — so issuers cannot increase late fees from that amount year after year.

Returned payment fees: Like late fees, returned payment fees are a type of penalty fee charged by your issuer. If you make a payment from a bank account without enough funds to cover the payment amount, you could be issued a returned payment fee. These fees can also range up to $40 per charge.

Foreign transaction fees are a common credit card fee that applies to purchases you make abroad or purchases with businesses based in other countries. Typically, these fees range from 1% to 3% of each foreign transaction.

Balance transfers can be a useful tool for paying off debt without interest, but you should be aware of the potential fee cost before you decide to transfer a balance. These fees are often expressed as the greater of a percentage of your balance (3% to 5%) or a flat fee ($5 to $10).

When you need to borrow cash from your credit line, you can incur a cash advance fee. Because of the cost—which includes both the fee and a cash advance APR—cash advances are risky and best used as a last resort. Like balance transfers, cash advance fees are often charged as the greater of either a percentage of the cash you withdraw (3% to 5%, for example) or a flat fee ($5 to $10).

There are no shortage of fees that your credit card company may charge. But there are also ways to avoid paying them altogether.

The most important thing you can do to avoid credit card fees is read and understand your card's terms and conditions. Within these terms, you’ll find all of the fees you may be charged by your issuer and exactly how much they can cost.

Some fees also depend on your individual card. Foreign transaction fees, for example, are often waived on travel rewards credit cards. If you travel internationally often and want to use your card for spending, you may want to open a card with no foreign transaction fees as a benefit.

Another important way to avoid fees (including junk fees like late fees) is to practice good credit habits. If you pay your credit card balance on time each month — even better, pay your balance in full — you can avoid many fees associated with credit cards.

You won’t incur late fees as long as you pay by the due date, for example. You can avoid returned payment fees by making sure the account you use to pay has enough money to cover your balance. You can also avoid balance transfer fees by not taking on any debt that requires a balance transfer in the first place.

Avoiding credit card fees generally involves two best practices: finding the right card for your goals and spending and practicing good credit habits that will help you avoid debt and build a great credit score over time.

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.

The Consumer Financial Protection Bureau (CFPB) is turning its attention to credit card rewards programs.

The agency’s focus on rewards follows a 70% uptick in consumer complaints regarding credit card rewards since before the pandemic. In May, the CFPB released a report spotlighting common consumer complaints and held a joint hearing with the Department of Transportation on airline rewards programs in the U.S.

The goal? “Ultimately, we want to make sure that every family is getting what’s promised and that we really have a fair, competitive, and transparent [credit card] market,” said CFPB director Rohit Chopra at the joint hearing.

Here’s a closer look at the most commonly cited credit card rewards issues and a few actions that can help you avoid problems with your rewards credit cards today.

These are the topics the CFPB found most frequently among cardholder-submitted rewards complaints:

Some cardholders reported feeling like part of a “bait and switch” when they signed up for a card because of a marketed offer, only to never receive the promoted rewards — often because of requirements included in the card terms.

The CFPB calls this “unexpected promotional conditions.” Here are a few examples:

Different bonus offers depending on where you apply for a card (a specific website, a marketing email, social media ad, etc.)

Finding you’re actually ineligible for a targeted limited-time offer

Uncertainty about what counts toward a required spending minimum, so you’re unable to earn a bonus

If you’ve ever owned a travel credit card, you may be familiar with how big of an impact devalued rewards can have on your travel plans. Just a few recent examples include Delta’s revamp of its SkyMiles program, American Airlines’ move to limit how members can earn award miles, and airlines’ recent shifts from standard award charts to dynamic pricing.

These types of changes make it harder to book travel with your rewards, as the points you’ve already earned are suddenly worth less. Credit cards that earn airline miles or other travel loyalty program points are big offenders, but devaluation isn’t exclusive to travel rewards.

The CFPB includes changes to any type of rewards program with little notice within this category, as well as credit cards with minimum redemption requirements, where you may only be able to redeem rewards when your balance reaches $25 in cash back, for example.

“This not only creates confusion about the true value of the points, but also raises questions about fairness,” CFPB director Chopra said.

While some cardholders are concerned with the value of their rewards, others are unable to redeem rewards at all.

The CFPB report highlights consumers who were left on hold for hours with customer service or waited months to resolve issues with their credit card rewards. Some cardholders were ultimately unable to use their rewards at all when the card issuer and travel partner or merchant were unable to resolve their account issues.

Other complaints in the report include technical issues with online accounts and portals, delayed point transfers that made it impossible to take advantage of limited-time travel deals, and more.

The final theme highlighted by the CFPB is lost credit card rewards, stating that “issuers forfeit, expire, revoke, or otherwise take away hundreds of millions of dollars in earned rewards value each year.”

In some cases, points expired after an account was left inactive or they were lost when the issuer closed a cardholder’s account (by choice or not). Issuers can generally close an account without any advance notice, leaving some consumers surprised.

The CFPB hasn’t yet taken any action against credit card companies, airlines, or other stakeholders in the business of credit card rewards. And while regulation or enforcement may be key to some issues raised by cardholders, you can also better prepare yourself against conditional or unclear offers before you face any problems.

Here are a few ways to prevent common rewards issues from impacting your rewards value.

Don’t rely on marketing materials to give you the full view of a credit card offer. Always read the terms and conditions to determine whether the card is a good fit for your budget and spending.

If you’re opening a card with an introductory 0% APR, look for details about how long the intro period lasts, balance transfer fees that may apply, and how the ongoing APR is applied after the intro period.

For a welcome bonus offer, make sure you know the minimum required spending threshold, how long you have to meet it, and any restrictions on eligible purchases that apply toward the bonus. Issuers also frequently limit how often you can earn a welcome offer — you may be ineligible for the bonus if you’ve received a welcome offer on another card from the issuer in the last 48 months, for example.

You can find these details in the card terms on the issuer’s site. When you navigate to the card information page, you’ll see links to documents that explain all of the offer details. Issuers use different language when linking to these documents, so look for words like: rates and fees, pricing and terms, credit information, offer terms, program terms, or benefit details.

Sometimes the card terms and conditions are separate from the terms of a card’s rewards program. Here’s what each one entails:

Credit card terms and conditions: This is where you’ll find standard details like the APR, card fees, minimum interest charges, and more. Issuers are required to organize much of this information in a standardized format. That makes it easier for you to find and compare the fees you could incur, your interest rate and when it applies, penalties, how your minimum payment is calculated, and other details across different cards.

Rewards program terms: You might find details specific to a rewards offer within a card’s regular terms document or listed on the issuer site as a separate document. Here, you’ll find the important details about rewards offers that may not be listed elsewhere. This includes eligibility requirements, a rundown of purchases that don’t count toward the offer, expiration details, how to make sure you qualify, and more.

One of the best defenses you have against credit card rewards devaluation is using your points. Just like cash under a mattress isn’t going to increase in value, points and miles left in your account long-term won’t grow more valuable, either.

Given how widespread dynamic award pricing is among airline and hotel loyalty programs, the number of points or miles it takes to get the redemption you want can evolve quickly — and there’s no guarantee you’ll find a better redemption rate in the future.

There are more reasons to use your points regularly, too. If your card does have expiration policies that you’re unfamiliar with, using your points can ensure they don’t expire before you can redeem them. It can also keep you from forfeiting a big stash of points you may forget about when closing an account or points you could lose access to if any issues arise with your account.

Consider setting goals for your rewards as you accrue them. If you’re planning a big international trip this summer, for example, wait to open your travel card a few months before so you can meet the required spending threshold and secure your welcome bonus.

Then, once you’re ready to book your trip, go ahead and cash them in. Even if you don’t have enough points or miles before your trip to cover the cost in full, you can still get a significant discount on your airfare or hotel stays.

If you’re more exasperated than exhilarated by the thought of strategizing how to score the best value for your points, take that into consideration when you compare rewards credit cards.

Devaluation and uncertainty around how much your points and miles are worth can complicate the process for anyone — whether you’re a seasoned travel rewards user or looking for your first rewards card.

A cash-back credit card is likely the simplest option. Cash back, unlike many points and miles rewards, is a fixed currency — so you’ll always know exactly how much you have to redeem at any given time. For maximum simplicity, you might even opt for a card that earns flat cash back, like the Capital One Quicksilver Cash Rewards Credit Card or Wells Fargo Active Cash® Card.

Rewards cards that earn points toward a flexible rewards program (rather than an airline or hotel program) may offer some stability, too — though you will still need to read your card agreement and understand the value of each redemption option.

American Express, for instance, publishes a rewards calculator you can use to find exactly how much your Membership Rewards points are worth based on different redemption options. You can also differentiate those rewards values by the card you have — such as the American Express® Gold Card or The Platinum Card® from American Express.

Take Chase as another example. The Chase Ultimate Rewards points you earn with the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® are worth 1 cent each when you redeem for cash or gift cards (as stated in the cards’ rewards program agreements). But their value is boosted by 25% or 50%, respectively, when you use your points to book travel through Chase Travel. That means that no matter what you redeem those points for using Chase Travel, they’re worth 1.25 cents and 1.50 cents.

If you do want to keep earning points and miles toward your preferred airline or hotel program, the best way to get maximum value for your points is to keep your travel plans open.

When you’re determined to fly out at an exact time on an exact day, or you can only travel on holiday weekends, you’ll likely get diminished rewards value when you book. But if you don’t mind flying during off-peak times or shifting your hotel stay to a few days after the holiday, you’ll probably find your options open up a lot more.

There’s little we can do as consumers when airlines and other travel programs devalue their rewards across the board. But keeping a flexible itinerary can at least help you save money and get as much value as possible from your rewards card.

The CFPB’s focus on rewards is one of a few credit card topics the agency has recently addressed.

One big concern is interest rates, as Americans currently owe more than $1 trillion in credit card debt. In recent reports and at the joint hearing with the DOT, regulators raised issues with interest rate competition and transparency. The largest credit card companies tend to offer the highest interest rates, the CFPB points out, while lower interest rates are more commonly found from small banks and credit unions. What’s more, the highest interest rates are often found on popular rewards cards, while the cards with lower interest rates are typically lesser-known (and less-marketed) non-rewards cards.

The CFPB also recently ruled that buy now, pay later (BNPL) companies are credit card companies, and consumers have the same protections when using them as they do with their credit cards. Now, BNPL lenders must share regular statements with users. And if you make a purchase with BNPL, you have the right to dispute the charge and receive a refund when you return a purchase.

This article was edited by Alicia Hahn

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.