topic Re: AMEX BCE Upgrade to Preferred? in Credit Cards

AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 19:13:55 GMT

I have an upgrade offer on my BCE app. They offer a $150 SUB (with $1K spend in 90 days) to upgrade to Preferred and I'm thinking about if I want to do this. Ive never had an AF card and kinda against it, it doesnt make sense to me although I know it does to the CCC's! Does the $95 fee justify the rewards for people? I know everyones situations and spend are different but I'd like to hear thoughts from those who have had both BCE/Preferred. Is there any other benefit? Is it more "esteemed"? (snickering over here). AMEX has done really well by me overall and I havent been using the BCE for awhile in favor of Freedom and It for their 5% CB. So I'm feeling a little indebted (which I realize is a cringeworthy pun here). Thanks!

Re: AMEX BCE Upgrade to Preferred?

Anonymous — Wed, 03 Jun 2020 19:24:59 GMT

@PandaGirl77 wrote:
I have an upgrade offer on my BCE app. They offer a $150 SUB (with $1K spend in 90 days) to upgrade to Preferred and I'm thinking about if I want to do this. Ive never had an AF card and kinda against it, it doesnt make sense to me although I know it does to the CCC's! Does the $95 fee justify the rewards for people? I know everyones situations and spend are different but I'd like to hear thoughts from those who have had both BCE/Preferred. Is there any other benefit? Is it more "esteemed"? (snickering over here). AMEX has done really well by me overall and I havent been using the BCE for awhile in favor of Freedom and It for their 5% CB. So I'm feeling a little indebted (which I realize is a cringeworthy pun here). Thanks!

IF the choices for groceries are only BCE or BCP, then if you spend more than $95/0.03 = $3,167 on groceries (at stores Amex counts as groceries), then you come out ahead with the BCP. If in addition you use the BCP for streaming services (or gas) the breakeven point becomes lower.

But remember to take into account other cards that may give high rewards at least some of the time (e.g. Discover and Freedom). If all of the time you can get 5%, the BCP never makes sense.

Re: AMEX BCE Upgrade to Preferred?

Anonymous — Wed, 03 Jun 2020 19:25:46 GMT

And you can also consider just apping for BCP, you can get a much better SUB.

Re: AMEX BCE Upgrade to Preferred?

wasCB14 — Wed, 03 Jun 2020 19:33:46 GMT

In addition to giving you $150 for $1k spend, are they waiving the AF for the first 12 months?

I upgraded last summer for $250/$1k but with the AF due. I planned to keep the card for just 12 months or so before downgrading back to BCE. I've been using Instacart a lot lately with covid, but I'm not certain if I'll downgrade at 12 or 24 months. I have an ED and like MRs, and I sometimes get 5% with Freedom or Discover. I would never have upgraded without a nice bonus.

I have a Platinum and put all my streaming on that now...even if I overshoot the $20 monthly credit by $10 or so.

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 19:33:45 GMT

Thanks for the formula! I get gas 5% on the Freedom or Disco It at least one quarter and in my experience not the same quarter so that's nice. I really have to look at the grocery aspect and do some math. Thats what makes it look very appealing.

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 19:35:29 GMT

I did a prequal on AMEX a couple days ago and got nothing so I figured I better leave that alone not to waste a HP.

Re: AMEX BCE Upgrade to Preferred?

importxpresions — Wed, 03 Jun 2020 22:40:14 GMT

I suggest you make a spread sheet and run your numbers. With the 6% on the BCP and our spend on yearly groceries near $7-8,000 dollars the AF negligible for us..

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 19:45:46 GMT

No AF waiver for first year, boo. I didnt realize I'd be able to just downgrade later by request! See, I'm learning so much! Like yourself, since COVID Ive done several Walmart Grocery pickups. This isnt a way I like to get groceries in general but has decreased anxiety about going inside the big stores for me. Due to that I get the 5% on Cap1 Walmart. I suppose I could look at the preferred like a $55 bonus if its cancelled after a year. That doesnt have any negative consequences?

Re: AMEX BCE Upgrade to Preferred?

wasCB14 — Wed, 03 Jun 2020 20:02:27 GMT

@PandaGirl77 wrote:
No AF waiver for first year, boo. I didnt realize I'd be able to just downgrade later by request! See, I'm learning so much! Like yourself, since COVID Ive done several Walmart Grocery pickups. This isnt a way I like to get groceries in general but has decreased anxiety about going inside the big stores for me. Due to that I get the 5% on Cap1 Walmart. I suppose I could look at the preferred like a $55 bonus if its cancelled after a year. That doesnt have any negative consequences?

If your main interest is the bonus, I'd hold out for a better offer like:

$150 with a 12-month waiver ($150 net).

$250 with no waiver ($155 net).

Re: AMEX BCE Upgrade to Preferred?

Gollum — Wed, 03 Jun 2020 21:06:54 GMT

@PandaGirl77 wrote:
Thanks for the formula! I get gas 5% on the Freedom or Disco It at least one quarter and in my experience not the same quarter so that's nice. I really have to look at the grocery aspect and do some math. Thats what makes it look very appealing.

There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you ~~don't want to do the arithmetic~~ want to do less arithmetic.

Re: AMEX BCE Upgrade to Preferred?

importxpresions — Wed, 03 Jun 2020 22:45:01 GMT

@PandaGirl77 wrote:
No AF waiver for first year, boo. I didnt realize I'd be able to just downgrade later by request! See, I'm learning so much! Like yourself, since COVID Ive done several Walmart Grocery pickups. This isnt a way I like to get groceries in general but has decreased anxiety about going inside the big stores for me. Due to that I get the 5% on Cap1 Walmart. I suppose I could look at the preferred like a $55 bonus if its cancelled after a year. That doesnt have any negative consequences?

Note that Target and Walmart will not give the 6% bonus as they are categorized differently, discount clubs?, than other groceries stores. I believe that neighborhood Walmarts work as well as dedicated groceries stores like Albertsons, Reasors, etc.

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 23:32:34 GMT

@wasCB14 now that I know they issue $250 bonuses I will probably hold out!

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 23:34:40 GMT

@Gollum wrote:

There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you want to do less arithmetic.

What a great resource, thank you!

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Wed, 03 Jun 2020 23:42:27 GMT

@Gollum wrote:
@PandaGirl77 wrote:
Thanks for the formula! I get gas 5% on the Freedom or Disco It at least one quarter and in my experience not the same quarter so that's nice. I really have to look at the grocery aspect and do some math. Thats what makes it look very appealing.
There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you ~~don't want to do the arithmetic~~ want to do less arithmetic.

MIND BLOWN! Does anyone do this? (from the article)

Nerd Tip:

Many supermarkets sell gift cards for a variety of retailers, restaurants and other merchants. Buying gift cards with either of the Blue Cash cards, then using those gift cards, means you can effectively extend your bonus cash back to a much wider range of categories.

Re: AMEX BCE Upgrade to Preferred?

K-in-Boston — Wed, 03 Jun 2020 23:59:55 GMT

@PandaGirl77 wrote:
@Gollum wrote:
@PandaGirl77 wrote:
Thanks for the formula! I get gas 5% on the Freedom or Disco It at least one quarter and in my experience not the same quarter so that's nice. I really have to look at the grocery aspect and do some math. Thats what makes it look very appealing.
There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you ~~don't want to do the arithmetic~~ want to do less arithmetic.
MIND BLOWN! Does anyone do this? (from the article)
Nerd Tip:
Many supermarkets sell gift cards for a variety of retailers, restaurants and other merchants. Buying gift cards with either of the Blue Cash cards, then using those gift cards, means you can effectively extend your bonus cash back to a much wider range of categories.

Many people do that. It's one of the primary reasons there is a cap on the amount of rewards you can earn in the grocery category. Grocers may transmit Level III data (including an itemized list of everything purchases) to American Express, and excessive purchases may trigger a closer look due to suspicion of manufactured spending, particularly for items like Visa gift cards.

Re: AMEX BCE Upgrade to Preferred?

wasCB14 — Thu, 04 Jun 2020 00:03:45 GMT

@K-in-Boston wrote:
@PandaGirl77 wrote:
@Gollum wrote:
@PandaGirl77 wrote:
Thanks for the formula! I get gas 5% on the Freedom or Disco It at least one quarter and in my experience not the same quarter so that's nice. I really have to look at the grocery aspect and do some math. Thats what makes it look very appealing.
There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you ~~don't want to do the arithmetic~~ want to do less arithmetic.
MIND BLOWN! Does anyone do this? (from the article)
Nerd Tip:
Many supermarkets sell gift cards for a variety of retailers, restaurants and other merchants. Buying gift cards with either of the Blue Cash cards, then using those gift cards, means you can effectively extend your bonus cash back to a much wider range of categories.
Many people do that. It's one of the primary reasons there is a cap on the amount of rewards you can earn in the grocery category. Grocers may transmit Level III data (including an itemized list of everything purchases) to American Express, and excessive purchases may trigger a closer look due to suspicion of manufactured spending, particularly for items like Visa gift cards.

And some grocery stores sell those gift cards, but only accept cash or debit as payment for them...even though they'll let you buy food with a credit card.

Re: AMEX BCE Upgrade to Preferred?

Kforce — Thu, 04 Jun 2020 00:39:26 GMT

With the AF and Cap it is not a straight line.

If you spend less or more than the ideal spend , you are penalized

Even at ideal it is not a 6% card after the AF

It is technically closer to a 3% card than a 6% card. (~4.4 with perfect spend)

The real value even with the average streaming bill is < 5%.

It is not necessarily a bad card it just is not what most think and works best for those with high spend that have another card to switch spend too when the cap is reached.

Re: AMEX BCE Upgrade to Preferred?

Anonymous — Thu, 04 Jun 2020 00:28:21 GMT

@PandaGirl77 wrote:
@Gollum wrote:

There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you want to do less arithmetic.
What a great resource, thank you!

This is good for BCE vs BCP but remember to enter data that also takes into account your other cards. If you are getting 5% in a quarter on Freedom or Discover, that grocery spending shouldn't go into the calculator

Re: AMEX BCE Upgrade to Preferred?

PandaGirl77 — Thu, 04 Jun 2020 00:28:45 GMT

@Kforce wrote:

Thats an impressive chart!

Re: AMEX BCE Upgrade to Preferred?

wasCB14 — Thu, 04 Jun 2020 00:47:04 GMT

@Anonymous wrote:
@PandaGirl77 wrote:
@Gollum wrote:

There's a calculator about halfway down the page at https://www.nerdwallet.com/blog/credit-cards/american-express-blue-cash-everyday-vs-blue-cash-preferred-comparison/ if you want to do less arithmetic.
What a great resource, thank you!
This is good for BCE vs BCP but remember to enter data that also takes into account your other cards. If you are getting 5% in a quarter on Freedom or Discover, that grocery spending shouldn't go into the calculator

And I was barely even using my BCP for groceries before covid, buying most groceries at Costco and only getting minor and specialty items at supermarkets. Earning the most in rewards on a basket of food doesn't mean you're getting it at the lowest net cost.