topic Re: Amex BCP vs BCE rewards in Credit Cards

Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 06:48:18 GMT

I’ve had my BCE for over 2 years never had a CLI on it. I just now learned what my benefits are. Looks like I would benefit from having the BCP on my grocery budget alone. 6% CB on the max groceries = $360 CB on $500/mo groceries. Then there’s 2% CB on gas. I always wanted a CB card for gas I thought Sam’s Club had a card that offered 5% CB on gas....that’s another story.

So the BCP would net me $265/yr CB after AF. If my math is correct, this would be worth having over a BCE? I have an offer in my AMEX account to upgrade to a BCP and get $250 for spending $2k/90 days.

Your thoughts? Should I request a CLI before upgrading? Would my upgrade offer go away if CLI is approved?

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 07:09:02 GMT

If you can max out 6k per year, you will net $85 with BCP vs BCE. That said, if you end up joining Sam's for its 5% gas, some of that grocery spending will end up at Sam's so I would look at the whole picture before making the move, meanwhile get that CLI going, it shouldn't affect the upgrade offer.

I just closed my BCP and moved limit to BCE before the AF was about to hit (1st year waived), between BCE and Discover/Freedom 5% at either grocery or Costco, the math just didn't add up for me.

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 07:14:51 GMT

My math: 6% on $6,000 groceries = $360. $360 minus $95 AF = $265. Am I missing something?

I’m with Costco but would consider a Sam’s membership. I’ll look at their benefits in a moment. I thought AMEX grocery rewards didn’t apply to Costco/Sams. I’m not considering Sam’s at this time because I don’t want a HP at this time.

Re: Amex BCP vs BCE rewards

Kenny — Thu, 06 Dec 2018 07:23:56 GMT

It's worth waiting until you get an email with an incentive to upgrade, however if it makes sense to your budget, then go right ahead. I just love having an "upgrade and receive $XX-XXX dollars" for doing so.

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 07:58:27 GMT

@_NERD wrote:
My math: 6% on $6,000 groceries = $360. $360 minus $95 AF = $265. Am I missing something?

I’m with Costco but would consider a Sam’s membership. I’ll look at their benefits in a moment. I thought AMEX grocery rewards didn’t apply to Costco/Sams. I’m not considering Sam’s at this time because I don’t want a HP at this time.

Your math is missing the opportunity cost of 3% you would get from using the no AF BCE, so it's 3% on $6000 = $180 -$95 = $85. This is why BCP doesn't make sense for cashback people with a full deck which will most likely include Freedom and Discover, assuming each has a 5% quarter on grocery, the math then becomes 3% on $3000 + 1% on $3000 = $90 + $30 = $120, $120 - $95 = $25. That is assuming maxing out $6000, not easy to do being a wholesale club member and Freedom/Discover 5% wholesale club categories.

I wasn't implying Amex rewards applies to wholesale clubs, just saying some of the spending would go to wholesale cubs if you join Sam's because it's probably cheaper than supermarkets even with BCP 6%. Did not know you already have Costco.

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 07:48:16 GMT

@oldman87: I never heard of opportunity cost. I’m just now starting to use my BCE for groceries. If I am going to put $6k of grocery spend on a credit card annually moving forward, which of these two cards would you recommend?

Thanks!

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 07:50:14 GMT

@Kenny: I don’t have an email but I have an upgrade offer in my Amex account (using AMEX app & website) to upgrade my BCE to a BCP & get $250 back if I spend $2,000 in the first three months.

Does that qualify as an incentive?

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 07:56:12 GMT

@_NERD wrote:
@Anonymous: I never heard of opportunity cost. I’m just now starting to use my BCE for groceries. If I am going to put $6k of grocery spend on a credit card annually moving forward, which of these two cards would you recommend?

Thanks!

BCP, you will make $265 after AF vs $180 with BCE, net gain of $85.

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 08:05:35 GMT

Thank you, I’ll upgrade to BCP then. If I do a CLI before the upgrade, would that cancel my preapprovals on all the other AMEX cards I’m currently preapproved for? Or if I get a new AMEX card on a SP first, would that reset the CLI clock on my BCE?

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 08:17:51 GMT

No, getting a CLI shouldn't cancel preapprovals unless you've hit your Amex internal limit, even then Amex will move some of your BCE limits to the approved card. And no, getting a new card will not reset the clock for BCE, the clock will now apply to both BCE and the new card, you can choose either card (only one) when you're eligible for CLI.

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 08:28:53 GMT

Thank you for all the info. Should I

1.) CLI BCE
2.) Upgrade BCE card to BCP
3.) App for a new Amex card

in any particular order?

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 08:32:59 GMT

One last thing, I remember you talked about not wanting to be HPed because of your garden club diamond status in another thread, a new account from Amex will reset diamond to seeding even if it's SP only. Just a heads up.

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 08:37:09 GMT

@_NERD wrote:
Thank you for all the info. Should I

1.) CLI BCE
2.) Upgrade BCE card to BCP
3.) App for a new Amex card

in any particular order?

Exactly as you have it.

Re: Amex BCP vs BCE rewards

_NERD — Thu, 06 Dec 2018 10:04:39 GMT

What?!?! This is horrifying news.

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 16:33:14 GMT

@Anonymous wrote:
@_NERD wrote:
@Anonymous: I never heard of opportunity cost. I’m just now starting to use my BCE for groceries. If I am going to put $6k of grocery spend on a credit card annually moving forward, which of these two cards would you recommend?

Thanks!
BCP, you will make $265 after AF vs $180 with BCE, net gain of $85.

But, as oldman87 suggested earlier, this calculation is only valid with the assumptions:

1) All the $6K spend is at stores that Amex counts as grocery stores (e.g. not Target and at least some Walmart stores, or Costco)

2) None of the spend could be covered by 5% cards, such as Freedom, Discover (and for Whole Foods, Chase Amazon)

Re: Amex BCP vs BCE rewards

kilroy8 — Thu, 06 Dec 2018 16:45:08 GMT

I am a big fan of the BCP, but I am in a unique situation. I have a grocery store where the gas station also codes as groceries, so I was able to:

Nearly max 2 Discover cards with cash back match during grocery quarter, so 10% back on about 2.5K

Max out BCP 6K groceries by end of November, 6% less 95 AF

Put another 2K or so (thus far) in groceries on BCE/NFCU MoreRewards at 3%

I have earned a bunch of cash on my grocery spend this year.

Re: Amex BCP vs BCE rewards

Anonymous — Thu, 06 Dec 2018 17:14:21 GMT

@Anonymous wrote:
@Anonymous wrote:
@_NERD wrote:
@Anonymous: I never heard of opportunity cost. I’m just now starting to use my BCE for groceries. If I am going to put $6k of grocery spend on a credit card annually moving forward, which of these two cards would you recommend?

Thanks!
BCP, you will make $265 after AF vs $180 with BCE, net gain of $85.
But, as oldman87 suggested earlier, this calculation is only valid with the assumptions:

1) All the $6K spend is at stores that Amex counts as grocery stores (e.g. not Target and at least some Walmart stores, or Costco)
2) None of the spend could be covered by 5% cards, such as Freedom, Discover (and for Whole Foods, Chase Amazon)

Should have also added: For those with Amazon Prime cards, check to see if gift cards are available on Amazon for that supermarket. Then, although a little less convenient then just using your card, you get an uncapped 5% on those, which makes the BCP less valuable. Plus you get the rewards that month and (at least with Chase) you have different cash redemption options, whereas with BCP you get them a month delayed, and as statement credit. You can get cards for Safeway, Albertsons, Giant/Stop&Shop and WholeFoods.

Re: Amex upgrade BCE to BCP | worth it?

Anonymous — Thu, 06 Dec 2018 18:58:58 GMT

Blue Cash Everyday is 3% Cash Back at supermarkets capping at $6,000. After that its 1% and 1% on everything else. To break even with the BCP if you spend an average of $140 a month on groceries, this would break even on the annual fee. From there everything else would put you over the threshold. Though there is a capping threshold over $6000 where it changes to 1%, you would obtain more cashback if you spend that amount a month in groceries alone.

Re: Amex upgrade BCE to BCP | worth it?

Anonymous — Thu, 06 Dec 2018 19:44:27 GMT

@Anonymous wrote:
Blue Cash Everyday is 3% Cash Back at supermarkets capping at $6,000. After that its 1% and 1% on everything else. To break even with the BCP if you spend an average of $140 a month on groceries, this would break even on the annual fee. From there everything else would put you over the threshold. Though there is a capping threshold over $6000 where it changes to 1%, you would obtain more cashback if you spend that amount a month in groceries alone.

You have to factor in 3% earned on a no AF BCE, OP will have to spend $264/month to break even on the BCP vs using BCE. And that is just a straight up comparison of BCP vs BCE, not taking into account of other factors like Discover and Freedom's 5% grocery categories.

Re: Amex BCP vs BCE rewards

kdm31091 — Fri, 07 Dec 2018 03:38:10 GMT

Keep in mind also you can often get goods cheaper at stores that don't count as "grocery" for 6% on Amex, such as Target, Walmart, Costco, etc. So don't spend more at "real" grocery stores just to try and justify the 6% if you can save more on the goods to begin with by shopping elsewhere.