I have so many CSP points and I don't plan on redeeming them for anytime soon, which means they'll just sit in my account for 5+ years unused.
Anyone know if there is any downside to this (e.g., expiration dates?
Decreased value redemption, etc.). Can't seem to find anything online.
Chase Sapphire Preferred: Any Downside to not using points for a longtime?
byu/annadanchar inCreditCards
Posted by annadanchar
7 Comments
The main risk that you have is, if Chase ever decides to devalue the points, or change the transfer partners significantly
If you’re not earning and burning your points then this is not the card for you. You may want to consider a cash back card instead.
Very high risk of decreased redemption value for holding points for a long time. You can get statement credit for 1:1 for Chase UR.
Think of it almost as keeping cash in a bank with 0% interest. As inflation kicks in, the cash sitting in your bank devalues.
As more people redeem points, the value of transfer partners will drop over time. As an example, Hyatt devaluations will kick in next month. As another example from a different vendor, IPrefer and Choice have devalued for Citi.
Redeem your points when you can unless you have a big trip planned ahead.
The biggest risk is that point valuations and redemption options almost always tend to get nerfed over time.
As others have said, your biggest risk is that the points lose value over time, either due to transfer rate changes with partners or those partners’ redemptions getting worse. This is almost guaranteed, as we’ve seen over just the last couple years. Additionally, I have seen a couple people say Chase cancelled all their cards with no explanation and they had real difficulty getting their points cashed out. So to avoid that headache I would just cash them out at 1cpp and throw that cash in a HYSA or investment account, since you’ll probably get similar value by doing that as you will by getting half-decent redemptions at whatever the rates are in 5+ years.
Yes, points can definitely be devalued. In fact, Chase recently introduced **Points Boost**, which shifted the baseline redemption value for many accounts. While your points don’t technically expire as long as your account is open, ‘hoarding’ them is generally a losing game against inflation.
I tend to treat points like a non-interest-bearing currency. If you don’t plan on using them for travel in the next few years, you’re better off redeeming them for something useful now. If you turn them into cash, you can at least put that money into a **High-Yield Savings Account (HYSA)** or invest it. At current interest rates, the ‘guaranteed return’ of cash in a 3–4% HYSA often beats the risk of a 20% point devaluation three years from now.