topic Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred??? in Credit Cards

AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Tue, 16 Aug 2011 13:48:56 GMT

New to the board here.

Wanted to get people's thoughts on the following...

I currently have a TrueEarnings rewards card. I find it serves me well as I shop at Costco (for misc. items AND gas) fairly frequently. However, I certainly do quite a bit of shopping elsewhere also, and don't ALWAYS purchase my gas from Costco. I do expect to spend more than $6,500 elsewhere annually and am a PIF cardholer.

As such, does anybody see any value in holding both a TrueEarnings rewards card (for Costco purchases only) AND obtaining a Blue Cash Preferred card for all other purchases? Is it even possible? I was considering upgrading from the TE to the BCP, but thought there might be some value in having both.

Thoughts? Experiences? Recommendations? I would be adding the BCP as a third (and Primary) card to the quiver, with the TE only for Costco use, with a backup Visa for places that don't accept AMEX.

Thanks.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Tue, 16 Aug 2011 15:17:17 GMT

Well, probably. You would need to sit down with a calculator and a list of your expenses last year to know the best mix. If you spend much at grocery stores, the bcp is a great card. If you dont, the standard bc may be fine for you.

Edit: didn't see you were considering dropping the te. There's really no value in dropping the te as long as plan on keeping the Costco membership. The dining and travel percentages are better than any other Amex.

If you spend $1 a year on groceries, you might as well get a bc. With no af, you've already made your money back. Same with gas. Every dollar over $3k you spend on gas is an extra percent (assuming you charge the first $3k to the te then switch over). To make the bcp worth it you'd have to spend $2500 on groceries, $7500 (over the $3k) on gas, or some combo of the two. Somebody correct me if my math is wrong.

Plus there's currently a $100 welcome bonus fir the bcp. If we were to apply that again the af for the life of the card it would drop the numbers listed above even more. I'm overcomplicating this. Yes the bcp would very likely help you out.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Tue, 16 Aug 2011 17:41:22 GMT

Hi nc80, and welcome to the myFICO Forums!

I have both the Costco True Earnings card & the Blue Cash Preferred. I go the Costco Amex first, two years ago, and decided to add the BCP just this past May, becaue of the 6% on groceries. Oh, before I go any further, I just wanted to note that you can't product change the Amex Costo TE to the BCP.

I shop a lot at Costco, and I also like to get Costco gas, when it's convenient. I'll be keeping my Costco membership, so there was no value in closing the Costco TE card. I've got a big family, and I'm not the 'hunter & gatherer' type (as long as it's nicely packaged in the grocery store, I can delude myself into thinking that it was never on or in the ground with dirt or worse on it)-- so, there's a hefty grocery bill every month. I immediately envisioned, and have realized so far, handsome cashback returns at my other favorite (but ridiculously priced) grocery stores, such as Whole Foods.

Because there are no tiers, I think that if you spend even as little as $100/month in groceries (at true grocery stores), you'll recoup your AF, plus a couple of dollars extra. Everything above that is more $$$ back. I've started using my BCE for all groceries except what I purchase at Costco (TE is used for that). Also, the 3% at department stores comes in very handy as well. I still prefer TE for gas, and Travel. Overall, I think I'll see a net gain in overall cashback, for both cards combined. So, if your spending patterns support it, I think it's a solid deal.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Tue, 16 Aug 2011 17:58:53 GMT

@Anonymous wrote:
Every dollar over $3k you spend on gas is an extra percent (assuming you charge the first $3k to the te then switch over).

Appreciate both responses thus far... Think you've convinced me to get both.

Hotcakes, not sure I understand the quote above. Thought when comparing gas, the TE card gives 3% cashback at all gas stations (including Costco) up to the first $3K spent, then only 1% thereafter; the BCP gives 3% at all gas stations up to an unlimited amount, excluding Costco gas.

So as a result, my plan of action is as follows... Let me know if this makes sense:

TE: Costco, Costco Gas and restaurants (2%).

BCP: All else.

Unless I'm missing something?... Does this seem to maximize the rewards I can get from both cards, without over-complicating it?

Edit: Travel with TE as well, based on rewards %. Didn't think of it initially since I don't travel much.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Tue, 16 Aug 2011 18:02:04 GMT

I was talking about the bc everyday at that point. I'm on my phone today, so sorry if it was a little jumbled and hard to understand. My point was that at the very least you should go for bc everyday as there is clear benefit there, and it is very likely that you'd get your money's worth on the bcp as well.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Wed, 17 Aug 2011 00:22:43 GMT

Not long ago I did some calculation regarding which version of the Blue Cash (Everyday or Preferred) is more appropriate for me. It comes that if you spend more than $208 a month in a regular grocery store, you are better off getting the preferred version with higher rewards and a fee. I did not take gas and department store into consideration at all becuase they are so similar between the two cards. My assumptions fit you well also, because TE and BCP both get 3% on gas and the 3% on department is raw gain for you. That means your break even point of having the Blue Cash Preferred Blue Cash Everyday is slightly lower than spending $208 monthly in actual grocery stores (not warehouse clubs, not walmart, not even target).

My situation is a bit different than yours, I have a chase freedom card that gives me 5% on grocery three months out of the year. I did some averaging and it comes to that break even point is about $250 in grocery stores to warrant the Preferred version of the Blue Cash.

My advice, if you are not sure, get the Blue Cash Everyday first, if you realize you spend more than $208 in grocery stores, product change it to a Blue Cash Preferred. Normally I would recommend you get the Blue Cash Preferred because of the $100 intro cashback offer, which essentially gives a free year to try the card out. However, I thnk that bonus is for people getting their first AMEX card (correct me if I am wrong)

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Wed, 17 Aug 2011 00:27:50 GMT

@ OP: I'm pretty sure AMEX removed the tier system from the Blue Cash cards so you no longer have to spend $6500 before you get the best cash back rates.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Wed, 17 Aug 2011 01:32:24 GMT

Thanks all. Appreciate the input. Seems like sound advice all around.

Based on the responses, I decided to go with the BC - Preferred. On top of all the factors discussed in this thread, I failed to mention that I have two young children. Why might that be important?...

For many of the recurring baby needs that are neither purchased at Costco nor the grocery store, we purchase via Subscribe & Save at Amazon (along with other one off purchases). My understanding, after doing research with several sources online, is that Amazon falls within the "Department store" category for purchases, and thus, 6%. (I hope this ends up being accurate.)

Either way, think the BCP will be worthwhile in the end with the additional savings I hope to get. And next up, will be to replace my CapOne No Hassle card with a Chase Freedom as my "backup Visa/MC"...

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

tengtengvn — Wed, 17 Aug 2011 16:56:25 GMT

@Anonymous wrote:
For many of the recurring baby needs that are neither purchased at Costco nor the grocery store, we purchase via Subscribe & Save at Amazon (along with other one off purchases). My understanding, after doing research with several sources online, is that Amazon falls within the "Department store" category for purchases, and thus, 6%. (I hope this ends up being accurate.)

I got my 3th statement today. Amazon shows up as Department store but I didn't get 3% back for my purchases from Amazon.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Wed, 17 Aug 2011 04:32:50 GMT

You get 3% from department store if you have the preferred version - same as gas.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Wed, 17 Aug 2011 11:35:09 GMT

Yep, thanks for catching that. Guess I was just so excited about getting 6% back on anything, it must've creeped into my subconscious...

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

tengtengvn — Wed, 17 Aug 2011 16:59:48 GMT

@Anonymous wrote:
You get 3% from department store if you have the preferred version - same as gas.

I have the BC Preferred. I spent 500 bucks on Amazon 2 months ago, so this month I should get $15 back but I didn't.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

MS00000000 — Wed, 17 Aug 2011 19:19:17 GMT

I have both cards, and now that the restaurant cash back has been lowered from 3% to 2%, I find that I'm not using the Costco card nearly as much. The Blue Cash Preferred is great for the 6% back on groceries at regular grocery stores, and as someone else said, the 3% department store cash back is just a bonus. That being said, I do spend a lot on groceries so the Preferred card nets more cash back for me even with the fee than the Everyday version.

I did not think Amazon counted as a department store for the Blue Cash rewards, even if it looks like it is a department store. I don't think Target is either based on the way the merchant in our area has coded the transaction.

But, when the restaurant cash back was reduced, I got the Citi Forward card that gives 5x on restaurants, bookstores, movies, etc. I realize this isn't a cash back card and outside the scope of your original question, but they do count Amazon as a bookstore even if you buy things that aren't books. I've found that the Citi Forward beats my Amazon Chase Visa rewards at 3% and those 5x points add up quickly if you shop at Amazon regularly.

Also, like another poster said, even though I don't use the Costco TrueEarnings as heavily as I did before I got the Blue Cash Preferred, I still have no reason to close that card. It gives me flexibility as far as when I get gas, I can use whichever card I want and get the same net cash back, and with no annual fee, it's nice to have for even infrequent traveler expenses.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Sat, 20 Aug 2011 14:15:32 GMT

@MS00000000 wrote:
I have both cards, and now that the restaurant cash back has been lowered from 3% to 2%, I find that I'm not using the Costco card nearly as much. The Blue Cash Preferred is great for the 6% back on groceries at regular grocery stores, and as someone else said, the 3% department store cash back is just a bonus. That being said, I do spend a lot on groceries so the Preferred card nets more cash back for me even with the fee than the Everyday version.

I did not think Amazon counted as a department store for the Blue Cash rewards, even if it looks like it is a department store. I don't think Target is either based on the way the merchant in our area has coded the transaction.

But, when the restaurant cash back was reduced, I got the Citi Forward card that gives 5x on restaurants, bookstores, movies, etc. I realize this isn't a cash back card and outside the scope of your original question, but they do count Amazon as a bookstore even if you buy things that aren't books. I've found that the Citi Forward beats my Amazon Chase Visa rewards at 3% and those 5x points add up quickly if you shop at Amazon regularly.

Also, like another poster said, even though I don't use the Costco TrueEarnings as heavily as I did before I got the Blue Cash Preferred, I still have no reason to close that card. It gives me flexibility as far as when I get gas, I can use whichever card I want and get the same net cash back, and with no annual fee, it's nice to have for even infrequent traveler expenses.

Plaint ole amazon purchases that are directly from amazon, and not its marketplace, are actually coded as Department Store purchases if you expand the individual transactions to show the details. That was why the previous poster had such question.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Sat, 20 Aug 2011 17:37:44 GMT

@Anonymous wrote:
Not long ago I did some calculation regarding which version of the Blue Cash (Everyday or Preferred) is more appropriate for me. It comes that if you spend more than $208 a month in a regular grocery store, you are better off getting the preferred version with higher rewards and a fee. I did not take gas and department store into consideration at all becuase they are so similar between the two cards. My assumptions fit you well also, because TE and BCP both get 3% on gas and the 3% on department is raw gain for you. That means your break even point of having the Blue Cash Preferred Blue Cash Everyday is slightly lower than spending $208 monthly in actual grocery stores (not warehouse clubs, not walmart, not even target).

My situation is a bit different than yours, I have a chase freedom card that gives me 5% on grocery three months out of the year. I did some averaging and it comes to that break even point is about $250 in grocery stores to warrant the Preferred version of the Blue Cash.

My advice, if you are not sure, get the Blue Cash Everyday first, if you realize you spend more than $208 in grocery stores, product change it to a Blue Cash Preferred. Normally I would recommend you get the Blue Cash Preferred because of the $100 intro cashback offer, which essentially gives a free year to try the card out. However, I thnk that bonus is for people getting their first AMEX card (correct me if I am wrong)

Awesome, someone actually calculated instead of guessing where the break-even point for the BCP annual fee is. Pardon my curiosity, could you hint what your profession is?

Also, to move the break-even to $250/month of groceries, it appears that your average annual spending with Freedom on groceries is $500, quite short of even a single card cap. Did you consider (and reject) getting to the full quarterly bonus spending cap using gift card purchases?

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Sun, 21 Aug 2011 02:19:43 GMT

@Anonymous wrote:
@Anonymous wrote:
Not long ago I did some calculation regarding which version of the Blue Cash (Everyday or Preferred) is more appropriate for me. It comes that if you spend more than $208 a month in a regular grocery store, you are better off getting the preferred version with higher rewards and a fee. I did not take gas and department store into consideration at all becuase they are so similar between the two cards. My assumptions fit you well also, because TE and BCP both get 3% on gas and the 3% on department is raw gain for you. That means your break even point of having the Blue Cash Preferred Blue Cash Everyday is slightly lower than spending $208 monthly in actual grocery stores (not warehouse clubs, not walmart, not even target).

My situation is a bit different than yours, I have a chase freedom card that gives me 5% on grocery three months out of the year. I did some averaging and it comes to that break even point is about $250 in grocery stores to warrant the Preferred version of the Blue Cash.

My advice, if you are not sure, get the Blue Cash Everyday first, if you realize you spend more than $208 in grocery stores, product change it to a Blue Cash Preferred. Normally I would recommend you get the Blue Cash Preferred because of the $100 intro cashback offer, which essentially gives a free year to try the card out. However, I thnk that bonus is for people getting their first AMEX card (correct me if I am wrong)
Awesome, someone actually calculated instead of guessing where the break-even point for the BCP annual fee is. Pardon my curiosity, could you hint what your profession is?

Also, to move the break-even to $250/month of groceries, it appears that your average annual spending with Freedom on groceries is $500, quite short of even a single card cap. Did you consider (and reject) getting to the full quarterly bonus spending cap using gift card purchases?

The matter is actually quite complicated.

1. That's how much you have to spend in a grocery store, not necessarily on just groceries.

2. If 1 is true, I have to consider how much a person gaining in net by purchasing gift cards in grocery stores over just paying with a credit card(think about gas, department store that one will earn bonus cashback). It was plain headache, and I just neglect those. Besides, in doing so, I am being more conservative with the break even point.

3. If a person is tapping the quarterly cap in grocery store spending. He should jump right over to the Preferred vesion, since his monthly grocery spending is way higher than the break even point. And if he has the Blue Cash Preferred, the person wouldn't use the 5% from Freedom anyway, so the spending cap from Freedom is irrelevant in this case.

Hope it helps.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

clocktick — Sun, 21 Aug 2011 04:05:19 GMT

I don't have the Costco TE but I do have the BCP. Spending a minimum of $100/mo on groceries alone will equal (almost) the annual fee.

$100/mo x 6% = $6/mo back, $6 x 12 months = $72/year. The annual fee is $75. I just got my BCP in May and already earned over $75 (and I use other cards as well). There are no caps and no minimums to spend before earning.

So, for me, the 6% groceries, 3% gas/dept. stores and the 1% on everything else make it very worthy to have. I haven't done it yet but you can buy gift cards at grocery stores. I also fill my prescription(s) there. I plan on earning hundreds more by the time my one year anniversary hits and am starting to use it as my primary card.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Sun, 21 Aug 2011 13:04:48 GMT

@clocktick wrote:
I don't have the Costco TE but I do have the BCP. Spending a minimum of $100/mo on groceries alone will equal (almost) the annual fee.

$100/mo x 6% = $6/mo back, $6 x 12 months = $72/year. The annual fee is $75. I just got my BCP in May and already earned over $75 (and I use other cards as well). There are no caps and no minimums to spend before earning.

So, for me, the 6% groceries, 3% gas/dept. stores and the 1% on everything else make it very worthy to have. I haven't done it yet but you can buy gift cards at grocery stores. I also fill my prescription(s) there. I plan on earning hundreds more by the time my one year anniversary hits and am starting to use it as my primary card.

$105 month in grocery store purchases breaks you even on the AF. I spend...ahem... a LOT more than that on groceries (big family, and healthy whole foods are not cheap). Minus the $100 bonus, it took just two months for me to recap the AF with spending alone.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Sun, 21 Aug 2011 21:53:14 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Not long ago I did some calculation regarding which version of the Blue Cash (Everyday or Preferred) is more appropriate for me. It comes that if you spend more than $208 a month in a regular grocery store, you are better off getting the preferred version with higher rewards and a fee. I did not take gas and department store into consideration at all becuase they are so similar between the two cards. My assumptions fit you well also, because TE and BCP both get 3% on gas and the 3% on department is raw gain for you. That means your break even point of having the Blue Cash Preferred Blue Cash Everyday is slightly lower than spending $208 monthly in actual grocery stores (not warehouse clubs, not walmart, not even target).

My situation is a bit different than yours, I have a chase freedom card that gives me 5% on grocery three months out of the year. I did some averaging and it comes to that break even point is about $250 in grocery stores to warrant the Preferred version of the Blue Cash.

My advice, if you are not sure, get the Blue Cash Everyday first, if you realize you spend more than $208 in grocery stores, product change it to a Blue Cash Preferred. Normally I would recommend you get the Blue Cash Preferred because of the $100 intro cashback offer, which essentially gives a free year to try the card out. However, I thnk that bonus is for people getting their first AMEX card (correct me if I am wrong)
Awesome, someone actually calculated instead of guessing where the break-even point for the BCP annual fee is. Pardon my curiosity, could you hint what your profession is?

Also, to move the break-even to $250/month of groceries, it appears that your average annual spending with Freedom on groceries is $500, quite short of even a single card cap. Did you consider (and reject) getting to the full quarterly bonus spending cap using gift card purchases?
The matter is actually quite complicated.
1. That's how much you have to spend in a grocery store, not necessarily on just groceries.
2. If 1 is true, I have to consider how much a person gaining in net by purchasing gift cards in grocery stores over just paying with a credit card(think about gas, department store that one will earn bonus cashback). It was plain headache, and I just neglect those. Besides, in doing so, I am being more conservative with the break even point.
3. If a person is tapping the quarterly cap in grocery store spending. He should jump right over to the Preferred vesion, since his monthly grocery spending is way higher than the break even point. And if he has the Blue Cash Preferred, the person wouldn't use the 5% from Freedom anyway, so the spending cap from Freedom is irrelevant in this case.

Hope it helps.

I agree that it can get quite complex if you take into account your other cards and opportunities. My main point is that I was glad to see someone not make the miscalculation that the $75 annual fee is "justified" by 75/6%/12=104 of monthly spending in grocery stores. (To the believers in the $100/month break-even: your math is off because you can get 3% back at grocery stores even if you DON'T pay the annual fee using the other version of the new Blue Cash card. Surely if you qualify for BCP, you could just as easily get BCED instead of using cash, debit, or non-reward credit. The 6% in the calculation becomes 6%-3%=3%, and the break-even point doubles.)

On the other hand, I don't entirely agree that the person with Freedom who can bump up against the $1,500 quarterly "groceries" cap should automatically move to BCP. Like you said, it is more complicated. This person could be stretching the bonus "grocery" spending beyond the quarter using GC's, so the $1,500 could be as low as $125/month. Yields on liquid savings are pretty miserable these days, so the opportunity cost of holding on to a few hundred dollars of GC's for up to 9 months instead of having it in some savings account would be about $10. (If he has debt at 10%, I give up, he has to go figure it out on his own...) The point is that there is a level of spending where Freedom+BCED nets more than BCP, and that level of spending may include some Freedom maximizers.

And yes, at some point it takes too long to figure out, and depending on how much one values one's time, the whole BCP vs. BCED dilemma becomes irrelevant.

Re: AMEX TrueEarnings (Costco) AND Blue Cash Preferred???

Anonymous — Mon, 22 Aug 2011 01:38:04 GMT

@Anonymous wrote:

I agree that it can get quite complex if you take into account your other cards and opportunities. My main point is that I was glad to see someone not make the miscalculation that the $75 annual fee is "justified" by 75/6%/12=104 of monthly spending in grocery stores. (To the believers in the $100/month break-even: your math is off because you can get 3% back at grocery stores even if you DON'T pay the annual fee using the other version of the new Blue Cash card. Surely if you qualify for BCP, you could just as easily get BCED instead of using cash, debit, or non-reward credit. The 6% in the calculation becomes 6%-3%=3%, and the break-even point doubles.)

@I think that, perhaps, the misunderstanding is coming from the "break-even" point. While I can't speak for everyone here, I doubt that many people are aiming for "break even". The BCP is by *far* the better deal for my usage. Let's say, for example, that I spend $700/month in groceries. BCE @ 3% cashback and no AF nets me cash rewards of approx. 252/year. Not bad. But, BCP @ 6% cashback & a $75 AF would result in abt $429/year cashback (after AF deduction). No contest.