topic Re: Why Amex BCE or BCP? in Credit Cards

Why Amex BCE or BCP?

ForumPheen — Thu, 10 Dec 2015 03:51:42 GMT

For 2 cards talked about alot on the forums, I don't find enough on them that compares the 2. Amex website didn't give much, maybe Flyertalk could, but want to know what people opted for and why.

Now that my TE Costco limit is where I want it to be, my next step is to app for one of these cards, but, the one with the better sign up bonus, and of course, the one that suits me most.

I will travel but I intend to get a CSP when ready for that to accompany my Amex Platinum. For now, I need a good solid rewards card. Been running all my spend through one cards for now for a reason (Visa). Amex's FICO score view shows my last SP at 724 in Nov, but my score dropped from 737 to 724 to 708 after PIF all cards in just 7 days. My concern is that if I wait until end of year to app, my SP will reflect 708 and doesn't update until Jan. I don't want to wait until Jan or Feb to app because of a lease up in May, so doing it now will give me room to heal AND have Amex match my TE Costco before it goes away.

I keep seeing CSP offers, and if it weren't for TE's demise looming ahead, I would've tried for this now.

Feedback on what you have/want to have between BCE and BCP is welcomed.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 04:28:33 GMT

BCP - 6% cash back on groceries up to $6,000 per year, cannot be beat. Also 3% cash back on department stores.

Neither the BCP or the BCE is for you if you plan to shop in warehouse clubs or discount stores (i.e, Walmart, Target, other regional discount stores) for groceries - the cash back is offered for shopping at grocery stores.

I received the $250 cash back offer if I spend $1,000 within the first 92 days of card membership. That $250 covers almost 4 years of the annual fees on the card, so it is tantamount to having almost 4 years fee-free on a card you are getting quite a bit of cash back on.

I don't use the 3% cash back on gas stations as I have the 5% cash back on my Sam's Club Mastercard that trumps the BCP in the arena of fuel.

Amex is known to be generous with CLI's as well. I don't plan to carry balances just because there are a number of people who have not had the best results when they do so. Best to just pay in full.

From a comparison standpoint with BCE, creditcardforum, nerdwallet, pointsguy and a few other sites compare the two and state that if you spend a minimum of $50 a week on groceries (most people do), you're better off with the BCP. I highly recommend the BCP.

BCE also offers a full percent less (2% with BCE vs 3% with the BCP) cash back on department stores.

Hope this helps.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 04:20:37 GMT

Look at TheManWhoCan's charts, http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

These don't take into account sign up bonuses as those change but for ongoing spending. For pure grocery spending the mathematics is very sinple. The BCP gives you 3% more but costs $75 a year more. So when is 3% more than $75

75/0.03= $2,500 so if you spend more on groeries than that (about $50 a week) BCP beats the BCE.

But it also depends where you spend. Walmart and Target are sometimes not covered by either card, so grocery spend there might not count towards the $2,500.

If you spend at the seleted department stores, you need less grocery spend to make the BCP better. And similarly for gas, but you can usually do better than 3% on gas anyway.

For many, the Sallie Mae was a better card than either, but is alas not currently available.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 04:25:22 GMT

They're both cash back, so there's not much mystery here; you really just need to crunch your own numbers and see how much you spend on a monthly basis to see which one fits your spending habits better.

BCE: 3% groceries ($6000 annual cap), 2% gas/dept stores, 1% everything else

BCP: 6% groceries ($6000 annual cap), 3% gas/dept stores, 1% everything else, $75 AF

If you spend $2500 a year on groceries, then you'll get the same amount of cash back from BCE and BCP (minus AF). So, spend more than that (average about $48 a week or $208 a month) the BCP wins; less than that get the BCE.

Bonus isn't a huge consideration since you can get targeted $250 offer on either card, so they cancel each other out. Just make sure you get a good bonus since you only get one in a lifetime!

EDIT: LTL types faster than me

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 04:26:52 GMT

@Anonymous wrote:

Bonus isn't a huge consideration since you can get targeted $250 offer on either card, so they cancel each other out. Just make sure you get a good bonus since you only get one in a lifetime!

The bonus actually can be a consideration- BCE is only offering $100 bonus right now, just fyi.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 04:30:36 GMT

@Anonymous wrote:
The bonus actually can be a consideration- BCE is only offering $100 bonus right now, just fyi.

Sure it can be; but by that same logic the current offer for BCP is only $150. My point was both cards often send targeted, better offers that pretty consistently hit $250 for $1000 spend, so assuming you see both of those it's a wash. Now if you're only getting one of those to appear then sure factor it in.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 05:56:58 GMT

BCP all the way. Im at 100 a week on fuel, 100 a week groceries. The plan was to buy fuel gift cards inside grocery store… until I was declined twice lol. Make sure your stats are in line before you give it a go.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 12:23:07 GMT

@Anonymous wrote:
BCP all the way. Im at 100 a week on fuel, 100 a week groceries. The plan was to buy fuel gift cards inside grocery store… until I was declined twice lol. Make sure your stats are in line before you give it a go.

Why were you declined? I have been doing exactly what you were planning since I got my BCE in May and I have never been declined. I even used it to to buy several gift cards for myself and for Christmas gifts inside the grocery store and didn't have any problems.

Re: Why Amex BCE or BCP?

Peteyglad — Thu, 10 Dec 2015 12:59:42 GMT

Not all places accept credit cards when buying gift cards. One time I was at a grocery store with a cart full of stuff and a $30 iTunes gift card. I had to pay for the iTunes card separate from my groceries and with cash or a debit card. It has only happened to me once, but it does happen.

Re: Why Amex BCE or BCP?

Open123 — Thu, 10 Dec 2015 13:40:20 GMT

If you're able to utilize GCs your Supermarkets offer, then the BCP is better. If not, then use math referenced above as a guide.

Good luck!

Re: Why Amex BCE or BCP?

takeshi74 — Thu, 10 Dec 2015 13:54:30 GMT

@ForumPheen wrote:
Why Amex BCE or BCP?

That's determined by the individual for any card -- not just the BCE or BCP. Don't rely on finding comparisons for every permutation of card pairing out there. You have to look at the info on the cards and each creditor's site is just one resource among many that you can use to do this. For rewards cards make sure you run the numbers for your spend. The BCE and BCP are both cash back cards so the math is very easy -- spend x %. BCE provides less rewards on our spend. In fact, we use 2 BCP's for our grocery spend because of the cap.

@ForumPheen wrote:
Amex's FICO score view shows my last SP at 724 in Nov, but my score dropped from 737 to 724 to 708 after PIF all cards in just 7 days. My concern is that if I wait until end of year to app, my SP will reflect 708 and doesn't update until Jan.

You'll incur an HP on a new card app.

@ForumPheen wrote:
I keep seeing CSP offers

How is this relevant to the BCE or BCP?

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 14:21:06 GMT

I'll just throw out there: Have you considered EDP?

I had BCP, and was using it only for groceries, was using other cards for other niche cashback categories. When we decided we'd have some travel coming up, we decided to switch to maximizing MR instead of cashback AND use it as a time to simplify which card DH would have to use. DH got the Plat. I got the PRG and the EDP (he's AU only on EDP). And we've switched to the EDP as his default card except in a few circumstances, and my non-cat card.

I don't know if it will always make sense for us, but the 4.5% MR in groceries is close enough to the 6% cash back that I'm happy. And 1.5% MR non-cat spend spend is easier than DC. The lower % with MR vs. cashback should change with the right redemption. But even if we ended up only getting 4.5% and 1.5%, the ease is worth it.

Just thought I'd throw that out there since you mentioned travel and your Plat. (Have downgraded my BCP to BCE. Now it's just an extra util pad and place to run more Amex offers.)

ETA: I didn't go back to read, but you mentioned wanting a CSP. Just want to make sure you're factoring the 5/24 chase rule into your plans.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 16:18:09 GMT

Did not mean declined. I do not have a BCP, denied twice this year. I'll try again soon.

Re: Why Amex BCE or BCP?

Anonymous — Thu, 10 Dec 2015 16:44:07 GMT

@Anonymous wrote:
Did not mean declined. I do not have a BCP, denied twice this year. I'll try again soon.

Oh, I see! Sorry I misunderstood you.

Re: Why Amex BCE or BCP?

ForumPheen — Fri, 18 Dec 2015 02:10:43 GMT

Grocery spend is that of a family of 8, so the best grocert rewards wins.

TortoiseWins, I have never loked at ED and will take a closer look. Not savvy enough to maximize benefits like you have though.

In the meantime, I'll see what the mailman brings this way after the new year to get a feel for what Amex wants to do with all their TE holders. Hard to not hit the button, but I will do my very best for now.

Re: Why Amex BCE or BCP?

NRB525 — Fri, 18 Dec 2015 03:02:39 GMT

@takeshi74 wrote:

@ForumPheen wrote:
I keep seeing CSP offers
How is this relevant to the BCE or BCP?

OP has a number of plans for the near future:

Decide on BCE vs BCP

Get the CSP for travel usage, but not immediately

Find a new place to live.

OP: With AMEX, it doesn't really matter when you get a card what the CL or APR are. Both of those can be changed over time.

And for a lease? I would not think that the FICO score means a whole lot. As long as you are paying bills recently, you should be fine with the lease app.