topic Re: Downgrade BCP question in Credit Cards

Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 06:53:44 GMT

I always loved my BCP and thought I'd keep it forever, the other day was it's year anniversary (AF hasn't hit yet). However, getting approved for the CSR allowed me to PC my CSP to the Freedom, which leaves me in my current situation.

Since the Freedom has come out its always had atleast 1 quarter with 5% groceries right? I wouldn't use the BCP at all during that quarter because UR are at minimum 1.5 per point, making the freedom 7.5 for that quarter. So to justify my BCP, I'd now have only 9 months in the grocery spend to hit it, increasing the monthly spend by 25% to make it worth it. I generally only spend about $1-130 a month on groceries. If my month is right, Itd be about impossible for the BCP to be worth it right?

Are there a lot of other people that run a freedom/IT along with a BC(P). Of course I'd just downgrade to a BCE instead of closing, just wondering what others thoughts are. I didn't see a BCP+ Freedom chart anywhere, though I don't think it would be that hard to make one

Re: Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 07:05:43 GMT

Bottom line is if you can't justify that annual fee anymore then it might be time to PC. You'll still get 3x groceries for the BCE.

Re: Downgrade BCP question

newhis — Fri, 26 Aug 2016 12:15:28 GMT

$1-$130 a month? BCE is better for you and use Chase when they have groceries.

Let's say $111 a month, only used 9 months, at 6% is only around $60, can't pay the AF with that. BCE will be $30 and $0 AF

Re: Downgrade BCP question

bada_bing — Fri, 26 Aug 2016 12:40:08 GMT

Have you considered using gift cards to transfer other spending into the grocery category?

I use gas, restaurant and ebay gift cards from safeway to boost my grocery spend on BCP. It

works out for me.

That said, I'm thinking on whether I want to continue with the new increased AF when mine is

due in Feb. In order for BCP to pencil out, you need to get close to the $6000 grocery annual

spend at qualifying grocery stores. Not qualifying at Walmart is a big demerit for me. Another

is Costco going to Visa. BCP isn't the card it was a year ago for my spend.

Re: Downgrade BCP question

kdm31091 — Fri, 26 Aug 2016 12:53:23 GMT

With that spend the BCP won't be worthwhile. You should downgrade to BCE.

Even if you never got groceries with Freedom, $130 a month is insignificant spend in the grand scheme and you don't really need a dedicated card for it IMO.

Re: Downgrade BCP question

takeshi74 — Fri, 26 Aug 2016 12:56:54 GMT

@Anonymous wrote:
I generally only spend about $1-130 a month on groceries. If my month is right, Itd be about impossible for the BCP to be worth it right?

You didn't consider this before applying for the BCP?

($1 * 12 * 6%) - $75 = -$74.28 (i.e. you're in the hole)

($130 * 12 * 6%) - $75 = $18.60

BCE:

$1 * 12 * 3% = $0.36

$130 * 12 * 3% = $46.80

Always do the math for your spend. Make sure you're carefully comparing with the Freedom. $130 a month is a small amount of spend and not worth worrying over. Focus on where the majority of your spend is going. Don't look solely at the earn rates.

Re: Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 13:03:07 GMT

@ takeshi74, the annual fee on the BCP is now $95...even more reason the OP should switch to the BCE.

Re: Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 13:08:42 GMT

@takeshi74 wrote:
@Anonymous wrote:
I generally only spend about $1-130 a month on groceries. If my month is right, Itd be about impossible for the BCP to be worth it right?
You didn't consider this before applying for the BCP?

($1 * 12 * 6%) - $75 = -$74.28 (i.e. you're in the hole)
($130 * 12 * 6%) - $75 = $18.60

BCE:
$1 * 12 * 3% = $0.36
$130 * 12 * 3% = $46.80

Always do the math for your spend. Make sure you're carefully comparing with the Freedom. $130 a month is a small amount of spend and not worth worrying over. Focus on where the majority of your spend is going. Don't look solely at the earn rates.

I think it is pretty clear that "$1-130" means "$100-$130". Point still stands but the -$74.28 is a little silly

Re: Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 15:24:13 GMT

Well the BCP had a higher bonus so that's really a moot point if a bonus is over 100 higher. You go with the higher one regardless for atleast a year, so yea I did look into that when I first got it. Fwiw I've gotten 117 in reward spend. Gas can also fluctuate with trips,thougu I know we're talking about a 1% diff. The first year of my BCP however though has been far from a failure.

Edit: wow you literally thought I meant $1. Yes that would be very stupid of someone who doesn't spend money on groceries at all to get a grocery card.thats also a very....very wide range of grocery spend. Just did the math per statement, I would have earned a net gain of 34 more with the BCE, but with the bonus that didn't really matter.

Same rate for next year at 9 months would be 69 bcp vs 38 BCE.

Do the offers differ from BCE to BCP?

Re: Downgrade BCP question

adelphi_sky — Fri, 26 Aug 2016 19:14:10 GMT

Maryland's tax on store food is 6%. When I use my BCP, it's basically a tax free holiday for me every time I buy groceries. I got in before they increased the AF. We spend at least $500 in groceries a month. Thus we hit the yearly $6000 mark which gives us $360 cash back. Not including the $150 bonus we got. That's $450 - 75 = $375 for the first year. We live in the DC area. So food is very expensive here.

But I understand if you don't spend that much for food. BCP doesn't sound like it is worth it for you at this time. Maybe you can buy groceries for your family or friends and put it on the card and get the cash back from it.

Re: Downgrade BCP question

Anonymous — Fri, 26 Aug 2016 19:53:29 GMT

If you are using the BCP as your grocery card, nothing else, the exact cutoff is $225 a month on groceries. If you spend less you shouldn't be on the BCP.