AMEX BCE Upgrade to Preferred?

[PandaGirl77]

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!

[Anonymous]

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@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!

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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.

[Anonymous]

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

[wasCB14]

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.

[PandaGirl77]

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.  

[PandaGirl77]

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.

[importxpresions]

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..

[PandaGirl77]

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?

[wasCB14]

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@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?

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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).

[Gollum]

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@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.  

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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-prefer... if you don't want to do the arithmetic want to do less arithmetic.