BCP vs BCE

[w003ptr]

Is this $6000 grocery limit new?  I'm considering upgrading my BCE to a BCP, but if with the $6k cap I would only net about $105 more per year.  How easy is it to PC back to BCE if my spending ended up being less than anticipated?

[Kenny]

From my understanding you have to wait 13 months to PC with Amex.. but 105 to the good is better than not..??

[w003ptr]

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@KennyS2006 wrote:
From my understanding you have to wait 13 months to PC with Amex.. but 105 to the good is better than not..??

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I've had my BCE for >13 months.  Yea the $105 is great, but if I can't switch back to BCE (say if my spending ends up not being $6k like I think it will be) I could end up losing money.

[VinnyofLegend]

The $6000/yr grocery limit came into effect sometime last year. It applies to the BCE as well.

How much less do you think you'll spend?

As long as you spend at least $208/month at supermarkets the BCP won't ever be worse than the BCE. You also get an extra 1% on gas/department stores.

There's a nice chart here giving a close comparison.

http://www.plasticiq.com/blog/blue-cash-everyday-blue-cash-preferred/

[w003ptr]

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@VinnyofLegend wrote:

The $6000/yr grocery limit came into effect sometime last year. It applies to the BCE as well.

How much less do you think you'll spend?

As long as you spend at least $208/month at supermarkets the BCP won't ever be worse than the BCE. You also get an extra 1% on gas/department stores.

There's a nice chart here giving a close comparison.

http://www.plasticiq.com/blog/blue-cash-everyday-blue-cash-preferred/

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Thanks for the info.  I actually planned to do most of the $6k in Visa gift debit cards to buy money orders and pay rent with.  My concern is that Amex will question the spending because $500/mo is much higher than I spend now.

[takeshi74]

IIRC if your spending the 5% categories exceeds ~$12K the old Blue Cash may be worth considering.

[w003ptr]

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@takeshi74 wrote:

Don't overlook the old Blue Cash as well.

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The income I have on file with Amex (~$20k) is much too low to get away with any significant manufactured spending... unfortunately.

[longtimelurker]

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@w003ptr wrote:

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@VinnyofLegend wrote:

The $6000/yr grocery limit came into effect sometime last year. It applies to the BCE as well.

How much less do you think you'll spend?

As long as you spend at least $208/month at supermarkets the BCP won't ever be worse than the BCE. You also get an extra 1% on gas/department stores.

There's a nice chart here giving a close comparison.

http://www.plasticiq.com/blog/blue-cash-everyday-blue-cash-preferred/

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Thanks for the info.  I actually planned to do most of the $6k in Visa gift debit cards to buy money orders and pay rent with.  My concern is that Amex will question the spending because $500/mo is much higher than I spend now.

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Not to start a holy war against BCE, but for almost everyone, unless you need your first Amex (if you really do!), the Sallie Mae is going to be a better card.  

Just focusing on groceries, for spending up to $3K a year, SM wins, because it pays 5% vs 3%.  So at $3K, SM gives $150, BCE $90.

BCE continues its rate up to $6K, but that doesn't make much of a difference because of SM's lead.   So at $6K, SM gives $150 + $30 = $180, exactly the same as BCE.  SM is always ahead until this point, and afterwards, they each earn the same: 0.01(x-$6000) + $180.

And SM pays 3% more on gas up to $250 per month, and more importantly, gives 5% on bookstores including Amazon up to $750 a month.  The advantage of BCE  is only if you use the 2% on department stores, or buy more than $6K of gas per year.

BCE vs BCP is a false choice IMO, better is SM vs BCP vs BC.  Between them, those cards cover all levels of spending.

ETA: You may notice I have a BCE in my sig!  But this was just a PC to avoid the AF once I got the BC.  The card is sock-drawered.

[w003ptr]

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@longtimelurker wrote:

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@w003ptr wrote:

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@VinnyofLegend wrote:

The $6000/yr grocery limit came into effect sometime last year. It applies to the BCE as well.

How much less do you think you'll spend?

As long as you spend at least $208/month at supermarkets the BCP won't ever be worse than the BCE. You also get an extra 1% on gas/department stores.

There's a nice chart here giving a close comparison.

http://www.plasticiq.com/blog/blue-cash-everyday-blue-cash-preferred/

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Thanks for the info.  I actually planned to do most of the $6k in Visa gift debit cards to buy money orders and pay rent with.  My concern is that Amex will question the spending because $500/mo is much higher than I spend now.

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Not to start a holy war against BCE, but for almost everyone, unless you need your first Amex (if you really do!), the Sallie Mae is going to be a better card.  

Just focusing on groceries, for spending up to $3K a year, SM wins, because it pays 5% vs 3%.  So at $3K, SM gives $150, BCE $90.

BCE continues its rate up to $6K, but that doesn't make much of a difference because of SM's lead.   So at $6K, SM gives $150 + $30 = $180, exactly the same as BCE.  SM is always ahead until this point, and afterwards, they each earn the same: 0.01(x-$6000) + $180.

And SM pays 3% more on gas up to $250 per month, and more importantly, gives 5% on bookstores including Amazon up to $750 a month.  The advantage of BCE  is only if you use the 2% on department stores, or buy more than $6K of gas per year.

BCE vs BCP is a false choice IMO, better is SM vs BCP vs BC.  Between them, those cards cover all levels of spending.

ETA: You may notice I have a BCE in my sig!  But this was just a PC to avoid the AF once I got the BC.  The card is sock-drawered.

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I applied for SM late last year and got denied.  Recon denied too .

I would do BC, but I'm worried I'll get in trouble if my manufactured spend goes too high.

[longtimelurker]

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@w003ptr wrote:

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Thanks for the info.  I actually planned to do most of the $6k in Visa gift debit cards to buy money orders and pay rent with.  My concern is that Amex will question the spending because $500/mo is much higher than I spend now.

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Hard to be definite, but in my view, at low levels like that, the risk is possibly greater than the gain.  On the plus side, it's unlikely to attract attention, but if it does....

So for each $1000 you get $60, probably paying ~ $12 for the gift card, and ~0.50 for the MO, so ~ $285 per year, with a $75 AF.   So, certainly not nothing, but weigh the risk!