topic Re: BCE/Sallie Mae combo or BCP? in Credit Cards

BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:02:40 GMT

Help me decide if I should app for Sallie Mae to use the Sallie Mae/BCE combo for gas and groceries, or wait until next May and just upgrade to BCP.

Here is how the math would breakdown:

Sallie Mae: I would max out at $150 cash back per year

BCE: could use after monthly Sallie Mae max, which would net me about $46.80 per year

BCE/SM combo would net me a yearly cash back savings of $196.80/year

BPC: If I waited until May 2016, when my BCE may be eligible to upgrade to BCP, I could earn $273.60, which would net me $198.60 after the annual fee.

So two more dollars with the BCP, but I would have an AF card. I'm leaning towards the BCP option, since I would not have to take another HP and new TL by not apping for Sallie Mae. I should also take into account the Discover 5% gas period, which will essentially be 10% with the double deal (if they offer the gas quarter in 2016). If I bought gas cards for the year with my Discover instead of using the other cards, then using groceries alone, BCE/Sallie Mae would net me $168/year and BCP would net $141 after the fee.

What should I do? All opinions welcome! And I realize, I am probably fussing a little too much about a couple of dollars. But I think that spending a few minutes to determine what is more profitable is worth saving a few bucks.

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 21:09:02 GMT

I prefer to condense spend vs spreading it across many cards. So in my opinion, for simplicity, I'd just go for BCP since it seems you can justify it. As you said, you can get it with no HP/AAOA ding, and the cap is a bit more reasonable than the one on Sallie.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:10:09 GMT

To be clear, the gas limit and the groceries limit are separate. You have a limit of $250 for gas and a separate limit of $250 for groceries. Therefore, if you spend $240 on gas and $170 on groceries, you will get 5% back on each. Maxing the card on gas & groceries gets you $300 back per year.

Does this change your math at all?

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:12:17 GMT

@Anonymous wrote:
To be clear, the gas limit and the groceries limit are separate. You have a limit of $250 for gas and a separate limit of $250 for groceries. Therefore, if you spend $240 on gas and $170 on groceries, you will get 5% back on each. Maxing the card on gas & groceries gets you $300 back per year.

Does this change your math at all?

Yes it does! Thank you! I was reading about the Sallie Mae last night and I thought that the grocery and gas was a combined $250/mth. I need to rethink this now. Thank you so much!

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:17:29 GMT

Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 21:24:54 GMT

@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

$18 a year is really not much money, and you are spreading that across 2 cards vs just using the BCP.

To each their own, but I'd just upgrade to BCP in this situation, with not wanting a new account etc.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:34:52 GMT

Something else to consider is where your grocery shopping takes place. Technically, BCE/BCP is for "supermarkets," not groceries. While this doesn't seem to be a huge difference, I've found some mom and pop shops that SM covers that Amex doesn't. Additionally, some Walmarts and Targets count for groceries, but I don't think they do for supermarkets. However, I haven't tested that portion on my Amex card.

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 21:38:22 GMT

@Anonymous wrote:
Something else to consider is where your grocery shopping takes place. Technically, BCE/BCP is for "supermarkets," not groceries. While this doesn't seem to be a huge difference, I've found some mom and pop shops that SM covers that Amex doesn't. Additionally, some Walmarts and Targets count for groceries, but I don't think they do for supermarkets. However, I haven't tested that portion on my Amex card.

Right, but if you want a guaranteed 5% at Target you can just get the debit/credit Redcard. For Walmart yes, Sallie is more likely to count it vs BCP.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 21:50:40 GMT

@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 22:36:31 GMT

@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.

Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 22:40:41 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.
Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

Right, you can just buy an Amazon GC with BCP for 6% back and you are guaranteed that, as opposed to the somewhat unreliable coding of Amazon as bookstore for Sallie (it does usually work but not all the time!)

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 22:45:18 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.
Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

6% on BCP, 5% on SM But that is part of the finite $6K a year/$250 a month bucket, so buying gift cards removes that amount of real grocery spending. My point is that if OP spends a lot at the select department stores, BCP would win, if there is amazon spend (and the grocery cap is reached on the BCP) SM may win. These impacts can be bigger than the $18 in the last calculation.

So my advice would be to either try to do a full calculation taking all benefits into account, or decide not to sweat it and just make a decision!

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 22:46:48 GMT

@kdm31091 wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.
Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

Right, you can just buy an Amazon GC with BCP for 6% back and you are guaranteed that, as opposed to the somewhat unreliable coding of Amazon as bookstore for Sallie (it does usually work but not all the time!)

Reloading your giftcard account with Sallie Mae always works as far as I know. Anyone know an exception?

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 22:48:27 GMT

@Anonymous wrote:
@kdm31091 wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.
Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

Right, you can just buy an Amazon GC with BCP for 6% back and you are guaranteed that, as opposed to the somewhat unreliable coding of Amazon as bookstore for Sallie (it does usually work but not all the time!)
Reloading your giftcard account with Sallie Mae always works as far as I know. Anyone know an exception?

Buying a GC for Amazon with Sallie for 5% would work too, but the cap is much lower, so it's eating up some of your already small grocery cap AFAIK. I was saying how actually spending on Amazon with Sallie does not 100% of the time give you 5%.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 22:52:01 GMT

@kdm31091 wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.
Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!

Right, you can just buy an Amazon GC with BCP for 6% back and you are guaranteed that, as opposed to the somewhat unreliable coding of Amazon as bookstore for Sallie (it does usually work but not all the time!)

Oh right 6%. I need to lay off the Visa gift cards.

As stated before, you lose your option to chargeback. Generally not needed for big corporations like Amazon.

I like Amazon and Starbucks specifically because the gift cards can be loaded into the online account. Offtopic: Anyone else know any other retailers that can do that? Just so much easier to keep track of expensives to an account rather than to a gift card.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 23:01:00 GMT

What is the breakdown of the $198 BCP? Is that including the AF costs? How much more spending utnil $6000?

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 23:35:56 GMT

Wow! Tons of info here!
@Anon123, the BCP figure came from my grocery/gas only budget. I spend 300/mth on groceries, and 80/mth on gas. But I buy Kroger gift cards for gas, so I would get the 6% back on gas. So that would get me $273.60, minus the $75 fee, to equal $198.60.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 23:46:06 GMT

@Anonymous wrote:
Wow! Tons of info here!
@Anonymous, the BCP figure came from my grocery/gas only budget. I spend 300/mth on groceries, and 80/mth on gas. But I buy Kroger gift cards for gas, so I would get the 6% back on gas. So that would get me $273.60, minus the $75 fee, to equal $198.60.

Spend an additional $120 a month on gift cards or $1440 on grocery/Kroger cards at the end of the year.

Re: BCE/Sallie Mae combo or BCP?

Anonymous — Tue, 08 Sep 2015 23:49:51 GMT

I would actually go for the Sallie Mae WMC and simply use your BCE once you cap out on groceries. You don't have a 5% gas card, which when combined with 5% on groceries up to the caps makes Sallie Mae an incredibly appealing option. Sallie Mae + BCE is a pretty powerful grocery combo. Interestingly, some Sallie Mae cardholders have qualified for random quarterly promotions where they earn extra cashback in random categories (like an additional 2% for one quarter on gas, for instance). I have never been so lucky, but it is an interesting perk if you qualify.

Also, earning rewards with Sallie Mae is much less annoying than on an Amex rewards card. Barclays posts rewards as soon as your transaction posts. American Express does not even post your rewards for your monthly purchases on your next statement, but rather the statement after that!!!

Re: BCE/Sallie Mae combo or BCP?

kdm31091 — Tue, 08 Sep 2015 23:51:46 GMT

@Anonymous wrote:
I would actually go for the Sallie Mae WMC and simply use your BCE once you cap out on groceries. You don't have a 5% gas card, which when combined with 5% on groceries up to the caps makes Sallie Mae an incredibly appealing option. Sallie Mae + BCE is a pretty powerful grocery combo. Interestingly, some Sallie Mae cardholders have qualified for random quarterly promotions where they earn extra cashback in random categories (like an additional 2% for one quarter on gas, for instance). I have never been so lucky, but it is an interesting perk if you qualify.

Also, earning rewards with Sallie Mae is much less annoying than on an Amex rewards card. Barclays posts rewards as soon as your transaction posts. American Express does not even post your rewards for your monthly purchases on your next statement, but rather the statement after that!!!

I will give you that the rewards posting on Sallie is much faster, but at the end of the day, you get the rewards either way. Most people don't redeem that often anyway, so the instant posting is more psychological than practical. It is nice though.

As far as the random promos, since they are unpredictable, random and subject to stop completely at any point, they aren't really IMO part of the value of the card (just like I didn't mention Amex offers, for the same reason).