topic Re: When does BCP make sense? in Credit Cards

When does BCP make sense?

Anonymous — Thu, 16 May 2019 19:49:41 GMT

Is there a minimum spend per category that the community has agree’d that the Anual fee for the BCP is worth it? If not can we make one?

My spending:

about $300/mo on groceries (Walmart neighborhood market)

$60-80/mo on gas

about $30/mo on streaming services.

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 19:55:52 GMT

WMNM might code as grocery... would have to make sure to take advantage of 6% vs 1%

Take the $95 AF and calculate the grocery spend X .06 to find where you land. $300/mo gets you to $216 annually - AF = $121 profit

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 19:56:34 GMT

I am pretty sure walmart is not included with the 6 percent.

If it was, that would be about 216 dollars back a year based on your spend

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 20:19:51 GMT

If you have $264 per month in spending that codes at 6%, you’ll overcome the AF vs using a 3% card with no AF like the BCE and $198 a month will overcome a 2% card with no AF.

Re: When does BCP make sense?

calyx — Thu, 16 May 2019 20:09:57 GMT

At your spend, which is similar to mine, you would profit with the BCP over the BCE.
The problem, though, is that you shop at Walmart, and I don't know if the neighborhood markets code as supermarkets (superstores Target & Walmart are specifically excluded from the 6%).

I spend ~300/month on grocery, a bit on streaming subs, and don't have a gas card I like better, so I know I'll profit from the BCP, which is why I've been eyeing it for a while.

Re: When does BCP make sense?

Aim_High — Thu, 16 May 2019 20:23:54 GMT

" ... The problem, though, is that you shop at Walmart ... (superstores Target & Walmart are specifically excluded from the 6%)."

I don't have this particular card but I know from experience with many other cash-back cards that the "grocery stores" category does NOT normally include Walmart Neighborhood Market because the code they put on the charge makes it appear as a regular Walmart. That's why you need to be careful when evaluating cash-back cards; your mileage may vary.

Re: When does BCP make sense?

ScoreSizzle — Thu, 16 May 2019 20:32:22 GMT

Yes! If I didn't have the PRG or GOLD now, I'd still have that card. Totally worth it.

Re: When does BCP make sense?

VanderSnoot — Thu, 16 May 2019 20:41:27 GMT

Also, when comparing the AF cards, make sure you compare them against a non-AF card (your opportunity cost). They typically offer less % cash back, but you frequently come out ahead because of the AF. For me, because I get 6 months at 5% with no AF, I can't justify even a 6% card with AF.

Re: When does BCP make sense?

kilroy8 — Thu, 16 May 2019 20:50:11 GMT

When you consider using Discover at 5% groceries for a quarter, BCE is clearly better for you.

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 20:56:32 GMT

@Anonymous wrote:
If you have $264 per month in spending that codes at 6%, you’ll overcome the AF vs using a 3% card with no AF like the BCE and $198 a month will overcome a 2% card with no AF.

Right. But looks like OP also has the Discover, and in years where that has groceries, the spend needs to be slightly more (In general, if you have a 5% grocery coverage year round, BCP never makes sense)

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 21:33:30 GMT

@Anonymous wrote:
@Anonymous wrote:
If you have $264 per month in spending that codes at 6%, you’ll overcome the AF vs using a 3% card with no AF like the BCE and $198 a month will overcome a 2% card with no AF.
Right. But looks like OP also has the Discover, and in years where that has groceries, the spend needs to be slightly more (In general, if you have a 5% grocery coverage year round, BCP never makes sense)

I get that, base math is far less complicated than juggling category spend and gift cards and all that crap, some don’t want to be bothered with it. And as noted, those categories change.

Re: When does BCP make sense?

Anonymous — Thu, 16 May 2019 21:41:01 GMT

I’ve found multiple posts that’s claim Walmart neighborhood market codes as groceries. Ive been AZEO since mine opened so I’ve been using debit for apps but next month I’ll report back what it codes.

Re: When does BCP make sense?

Gollum — Thu, 16 May 2019 21:59:55 GMT

@Anonymous wrote:
Is there a minimum spend per category that the community has agree’d that the Anual fee for the BCP is worth it? If not can we make one?
My spending:
about $300/mo on groceries (Walmart neighborhood market)
$60-80/mo on gas
about $30/mo on streaming services.

If you're comparing the BCP to the BCE, plug the numbers into the calculator toward the bottom of this webpage https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ ,click the Calculate button, and the calculator will show you the rewards amount for both cards.

Re: When does BCP make sense?

5KRunner — Thu, 16 May 2019 23:44:43 GMT

The BCP is pretty much my ideal credit card, as I spend $400 per week on groceries (for a household of 6). In fact, I have several cards on which groceries earn higher bonus rates (BCE $6000/yr at 3%, Chase Freedom and Discover it Cash Back $1500 each at 5% when groceries are the prime category, Huntington Voice $2000/quarter at 3%). Gas and streaming bonuses on BCP are icing on the cake.

Re: When does BCP make sense?

Anonymous — Fri, 17 May 2019 00:20:45 GMT

The Walmart neighborhood market near me codes as grocery on my Gold so i would assume it would on BCP.

Re: When does BCP make sense?

Anonymous — Fri, 17 May 2019 03:46:59 GMT

@Anonymous wrote:
If you have $264 per month in spending that codes at 6%, you’ll overcome the AF vs using a 3% card with no AF like the BCE and $198 a month will overcome a 2% card with no AF.

Should also note that since the BCP has 6% streaming, you can essentially count that towards your grocery spending for a quick calculation, though the BCE lacks a streaming category, so the category isn't competing and you'll earn more than the 3% difference.

For everyone following along and in OP's shoes....

$30 grocery with BCP = $1.80

$30 grocery with BCE = $0.90

A difference of $0.90.

But $30 streaming for the BCP earna you a difference of $1.80, which is like spending an extra $60 month on groceries, when comparing the BCE & BCP.

So OP gets 9/month on BCE, but 19.80 with the BCP from 300 groc/30 stre. A difference of 10.80 (rather the BCP earned 20% more than twice what the BCE earned).

For a 10.80 difference with $0 streaming, grocery spending would have to go up to 360/month (notice, a 20% increase in grocery spending to make up the streaming spending).

A fun way to look at the $95 AF is rather than needing to spend 264/month on groceries to beat $0 AF/3% earn is that you only need to spend 132/month on streaming services! (.06 x 132 x 12) - 95 = (.00 x 132 x 12) + 0

1% on gas is a small perk. But most of the decision comes from grocery spending. Unless you were to be a person that has other transit expenses. Those can really add up since the BCE lacks the category.

Tip: buy gift cards at grocery stores if you aren't spending $500/month at grocery stores! 6% cash back on Amazon gift cards means you'll get a better value than even using the Amazon credit cards (3 & 5%)!

Re: When does BCP make sense?

Anonymous — Fri, 17 May 2019 14:49:49 GMT

The BCP is one of the only cards I've ever actually closed because it had such a narrow list of stores that coded under the 6%. I assumed out of naivety that my $300/week spend would easily clear the AF but in practice I found that the places that code as grocery were expensive enough over my local Walmart/Costco that they nullified my savings and then still cost more.

Re: When does BCP make sense?

Tonya-E — Fri, 17 May 2019 17:58:28 GMT

This is actually my "go to" card in my wallet. We use it for everything under the sun but especially groceries. The only drawback is that I usually max out the grocery category before renewal time. If you spend $1600 on groceries per year you have recouped your annual fee. At $300/mth in groceries, you will have recouped the fee by month 6. So you are guaranteed about $108 based on the additional 6 months of groceries alone at 6% (the cap is 6k - so $500 spend a month). If you use it for other items it only sweetens the pot. I use it for about 3-5 k a month depending on the time of year. I use it for work trips/expenses as well. I get reimbursed by the company but I can still get cash back for using the card. With the limitation on categories my average cash back is $80-150 each statement (until I start to max out), then it goes to around $50. Even at the low-end I garner about $800-1100 a year. Subtracting the yearly fee, it makes it well worth it in my eyes. I know there are rewards cards that would be better suited for my travel, but i haven't taken the time to review the options yet.

Re: When does BCP make sense?

Anonymous — Fri, 17 May 2019 20:48:50 GMT

If your Walmart has grocery pickup through the grocery app it *may* code as grocery store. Most people have success with that route. Just tried it with my BCE this week and the transaction details say "Catagory: Merchandise and Supplies-Grocery" which is the same as my local grocery store which does get the 3% BCE cashback.

Re: When does BCP make sense?

Aim_High — Fri, 17 May 2019 21:12:07 GMT

" ...I use it for work trips/expenses as well. I get reimbursed by the company ... I know there are rewards cards that would be better suited for my travel, but i haven't taken the time to review the options yet."

There are several good travel cards for frequent travelers. In my case, I love the Chase Ultimate Rewards program and the Sapphire Reserve. If you get reimbursed for travel expenses by employer, you should really clean up on that one. There is a $450 annual fee but you get reimbursed automatically your first $300 in travel charges, as well as Global Entry/TSA precheck $100/5 years. Roadside assistance ($50 equivalent annual AAA value.) Priority Pass airport lounge access at 1200 world-wide lounges ($429 annual value). Tons of premium travel protections like lost or delayed luggage, trip delays or cancellations, primary rental car coverage, etc. You get 3% back (unlimited - no caps) on all travel and dining out. And you also get 50% more on UR points when redeemed for travel on Chase UR portal.

If you don't like this one, the Sapphire Preferred card is also pretty good; lower annual fee of $95 but lower benefits on those programs. Both have fantastic sign-up bonus offers right now. In my opinion, the travel cards in the $95 annual fee range are best for occassional travelers who can't put the spend on a travel card to justify the higher annual fees and perks.