topic Re: Amex BCP downgrade timeline in Credit Cards

Amex BCP downgrade timeline

Anonymous — Tue, 20 Mar 2018 10:04:32 GMT

Hey guys, just a quick question, I was approved for the BCP last month (2/17) and my first statement just cut (3/19) which included the AF. My question is when exactly can I go ahead and downgrade to the BCE as to not incur the next AF? After a months usage it’s clear to me I just won’t spend enough in the 6% category to justify any AF on this card.

Thanks in advance.

Re: Amex BCP downgrade timeline

UpperNwGuy — Tue, 20 Mar 2018 10:52:27 GMT

If you've already paid the annual fee, you might as well keep the BCP for the next year and downgrade to the BCE when the next annual fee is due. That way you can get 6% back on grocery purchases. If you downgrade now, you will have paid for 6% but only receive 3%.

The breakeven point for the BCP is $3,167.00 per year in the groceries category. Anything less, you're better off with the BCE. Anything more, you're better off with the BCP.

If you spend the full $6,000 per year on groceries, you will earn $360 back on the BCP. Once you subtract out the $95 fee, your net cash back is $265 or 4.4% of the $6,000. So BCP is really a 4.4% card at best.

Re: Amex BCP downgrade timeline

dlister70 — Tue, 20 Mar 2018 14:13:29 GMT

@UpperNwGuywrote:

The breakeven point for the BCP is $3,167.00 per year in the groceries category. Anything less, you're better off with the BCE. Anything more, you're better off with the BCP.

If you spend the full $6,000 per year on groceries, you will earn $360 back on the BCP. Once you subtract out the $95 fee, your net cash back is $265 or 4.4% of the $6,000. So BCP is really a 4.4% card at best.

I forgot to factor in that I'd be getting groceries with my Discover It card for 3 months during their grocery quarter since I'll get the 5% plus another 5% match at the end of my first year. I thought that it'd be pretty easy to make it past $3,167 in a year but now I'm not so sure! I was considering downgrading when my next fee came up, but since the Discover match is only a one time thing, I'll just have to redo the math based on what I spent the other 9 months and see if it's worth it to pay another fee.

Good information on the 4.4%, as I hadn't seen it worded that way before. I knew that $3,167 was the break even point, but I hadn't really thought about "Great, now I have a 3.1% card instead of 3% card! Oh wait, now it's 3.2%!" and so forth. When you look at it that way, it does make it seem less worthwhile to pay the fee. If you're sure that you'll hit it, then that's great, especially if you're sure that you'll get to $6000 but if it's not a sure thing then you might as well stick with the BCE because if you just barely cross the threshold, then you're only earning an extra few bucks.

Of course, I guess I could always just buy a $500 visa gift card at the end of the year if I come up short and pay my insurance with it or something.

Re: Amex BCP downgrade timeline

Blackswizz750 — Tue, 20 Mar 2018 15:24:50 GMT

@dlister70wrote:
@UpperNwGuywrote:

The breakeven point for the BCP is $3,167.00 per year in the groceries category. Anything less, you're better off with the BCE. Anything more, you're better off with the BCP.

If you spend the full $6,000 per year on groceries, you will earn $360 back on the BCP. Once you subtract out the $95 fee, your net cash back is $265 or 4.4% of the $6,000. So BCP is really a 4.4% card at best.

I forgot to factor in that I'd be getting groceries with my Discover It card for 3 months during their grocery quarter since I'll get the 5% plus another 5% match at the end of my first year. I thought that it'd be pretty easy to make it past $3,167 in a year but now I'm not so sure! I was considering downgrading when my next fee came up, but since the Discover match is only a one time thing, I'll just have to redo the math based on what I spent the other 9 months and see if it's worth it to pay another fee.

Good information on the 4.4%, as I hadn't seen it worded that way before. I knew that $3,167 was the break even point, but I hadn't really thought about "Great, now I have a 3.1% card instead of 3% card! Oh wait, now it's 3.2%!" and so forth. When you look at it that way, it does make it seem less worthwhile to pay the fee. If you're sure that you'll hit it, then that's great, especially if you're sure that you'll get to $6000 but if it's not a sure thing then you might as well stick with the BCE because if you just barely cross the threshold, then you're only earning an extra few bucks.

Of course, I guess I could always just buy a $500 visa gift card at the end of the year if I come up short and pay my insurance with it or something.

Buying the gift card is a cool idea as you can use it for other spend. I also plan on doing this with my Disco card at the end of March. I can use it for gas during the year or items to give during the holidays.

Re: Amex BCP downgrade timeline

MakingProgress — Tue, 20 Mar 2018 15:29:57 GMT

@Blackswizz750wrote:
@dlister70
Buying the gift card is a cool idea as you can use it for other spend. I also plan on doing this with my Disco card at the end of March. I can use it for gas during the year or items to give during the holidays.

Many retailers will not let you purchase a gift card on a credit card. They make you use Cash, Check or Debit card for a gift card purchase, so make sure you know the rules before you try to use this stragegy.

Re: Amex BCP downgrade timeline

Anonymous — Tue, 20 Mar 2018 16:12:14 GMT

@MakingProgresswrote:
@Blackswizz750
Many retailers will not let you purchase a gift card on a credit card. They make you use Cash, Check or Debit card for a gift card purchase, so make sure you know the rules before you try to use this stragegy.

I've bought gift cards with a CC many times, never had a problem. Now maybe if it's a prepaid Visa/MC rather than a gift card for a specific store, it's different? I usually don't buy those. Also, I usually am buying other things at the same time, so maybe CC is okay if the gift cards aren't the only things you're buying.

Re: Amex BCP downgrade timeline

MakingProgress — Tue, 20 Mar 2018 16:28:57 GMT

The no CC rule for gift cards is usually when you are buying a general spend gift card such as a VISA/MC/AMEX gift card, as these are essentially pre-paid debit cards. Some other gift cards will also fall under this at third party retailers such as Walgreens. YMMV and rules can be different from one retailer to the next.

Re: Amex BCP downgrade timeline

Blackswizz750 — Tue, 20 Mar 2018 16:40:47 GMT

@MakingProgresswrote:
@Blackswizz750wrote:
@dlister70
Buying the gift card is a cool idea as you can use it for other spend. I also plan on doing this with my Disco card at the end of March. I can use it for gas during the year or items to give during the holidays.
Many retailers will not let you purchase a gift card on a credit card. They make you use Cash, Check or Debit card for a gift card purchase, so make sure you know the rules before you try to use this stragegy.

I know several who let me buy them with out an issue I am not into MS. I only buy what I need and use. I know the rules and limitations.

Re: Amex BCP downgrade timeline

UpperNwGuy — Tue, 20 Mar 2018 17:18:41 GMT

Here's an example: Michael's, the arts and crafts store, will not let you use a credit card to buy their in-house gift card. You must use a debit card or cash. The gift card is only good for shopping at Michael's.

Re: Amex BCP downgrade timeline

Anonymous — Tue, 20 Mar 2018 19:58:36 GMT

@UpperNwGuywrote:
Here's an example: Michael's, the arts and crafts store, will not let you use a credit card to buy their in-house gift card. You must use a debit card or cash. The gift card is only good for shopping at Michael's.

Yes, some places will treat all gift cards as cash/debit only. While I doubt that there are too many criminal gangs buying Michael's gift cards with a stolen credit card, which they then use at another Michael's store (or sell on a exchange), if it doesn't annoy their customers it reduces possible fraud.

And re A/MC/V prepaid cards, the policy can differ between stores of a chain (e.g. the local manager can decide whether to accept CCs and the daily limit) and unofficially even if the policy allows, you may be blocked by an individual clerk, who may have "heard", rightly or wrongly, that you cannot use a credit card

Re: Amex BCP downgrade timeline

Anonymous — Tue, 20 Mar 2018 20:36:06 GMT

Hey guys. Thanks for the info on gift cards, it’s definitely some good stuff to think about. My original question about the downgrade timeline hasn’t really been answered, what I’m really trying to figure out is since I’ve paid my first AF, I’d of course want to utilize the 6% as long as possible, but I’m fairly certain I won’t want to renew, and would rather not pay the AF again, so when should I call to downgrade? After the 12th statement cuts? Right before the 13th?