AMEX Blue Cash Every Upgrade to Blue Cash Preferred?

[Anonymous]

Topic says it all, i have the option to request an upgrade... Currently the BCE has no Annual Fee and the BCP will have a 95$ annual fee. However the benefits may potentially out weigh that fee... 

What is the general opinion?

[OmarR]

Someone can jump in and correct me if my math is wrong, but if you spend at least ~$60 per week ($240/month) on groceries, than the BCP is the better card.

[FinStar]

Is there a SUB as part of the offer to upgrade? 

[longtimelurker]

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@OmarR wrote:

Someone can jump in and correct me if my math is wrong, but if you spend at least ~$60 per week ($240/month) on groceries, than the BCP is the better card.

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Math is correct.  If you look purely at grocery spend, the cutover is where the extra 3% exceeds $95, so 95/.03, is about $3.166.67 a year, which is about $60.90 a week,

Cavaets in both directions!

1) This assumes spend at a grocery store which codes that way for Amex.   Otherwise, both cards earn 1% and the AF is a waste.

2) This spend goes on the Amex card only.   So if you have Discover IT and Freedom for example, some quarters you could get 5% supermarkets anyway, so the math changes, pushing the threshold up.   (For example, if you could always use a 5% card at a supermarket, e.g. Chase Amazon at Whole Foods, the BCP doesn't make sense, as the extra 1% on $6,000 doesn't outweight the $95 AF)

On the pro-BCP side: if you have streaming services, any money you put there lowers the breakeven.   Also true for gas, but even the 3% on BCP is low for gas if it is a significant spend.

[Anonymous]

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@longtimelurker wrote:

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@OmarR wrote:

Someone can jump in and correct me if my math is wrong, but if you spend at least ~$60 per week ($240/month) on groceries, than the BCP is the better card.

---

Math is correct.  If you look purely at grocery spend, the cutover is where the extra 3% exceeds $95, so 95/.03, is about $3.166.67 a year, which is about $60.90 a week,

Cavaets in both directions!

1) This assumes spend at a grocery store which codes that way for Amex.   Otherwise, both cards earn 1% and the AF is a waste.

2) This spend goes on the Amex card only.   So if you have Discover IT and Freedom for example, some quarters you could get 5% supermarkets anyway, so the math changes, pushing the threshold up.   (For example, if you could always use a 5% card at a supermarket, e.g. Chase Amazon at Whole Foods, the BCP doesn't make sense, as the extra 1% on $6,000 doesn't outweight the $95 AF)

On the pro-BCP side: if you have streaming services, any money you put there lowers the breakeven.   Also true for gas, but even the 3% on BCP is low for gas if it is a significant spend.

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To answer the questions or statements... 

We as a family spend on average $175 a week on Groceries at Meijer (Ohio)... We also have Netflix and Disney +

EDIT: Between wife and I we average 120$ in fuel a week. 

I do have a Discover IT Card as well as a Chase Amazon Prime with the Amazon Prime we do not shop at Whole Foods

[longtimelurker]

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@Anonymous wrote:

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@longtimelurker wrote:

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@OmarR wrote:

Someone can jump in and correct me if my math is wrong, but if you spend at least ~$60 per week ($240/month) on groceries, than the BCP is the better card.

---

Math is correct.  If you look purely at grocery spend, the cutover is where the extra 3% exceeds $95, so 95/.03, is about $3.166.67 a year, which is about $60.90 a week,

Cavaets in both directions!

1) This assumes spend at a grocery store which codes that way for Amex.   Otherwise, both cards earn 1% and the AF is a waste.

2) This spend goes on the Amex card only.   So if you have Discover IT and Freedom for example, some quarters you could get 5% supermarkets anyway, so the math changes, pushing the threshold up.   (For example, if you could always use a 5% card at a supermarket, e.g. Chase Amazon at Whole Foods, the BCP doesn't make sense, as the extra 1% on $6,000 doesn't outweight the $95 AF)

On the pro-BCP side: if you have streaming services, any money you put there lowers the breakeven.   Also true for gas, but even the 3% on BCP is low for gas if it is a significant spend.

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To answer the questions or statements... 

We as a family spend on average $175 a week on Groceries at Meijer (Ohio)... We also have Netflix and Disney +

I do have a Discover IT Card as well as a Chase Amazon Prime with the Amazon Prime we do not shop at Whole Foods

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Sounds like the BCP is a worthwhile upgrade (especially if there is a SUB)  Just keep track of the spend and when you reach $6K, if you have a card that does more than 1%, use that

[Anonymous]

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@FinStar wrote:

Is there a SUB as part of the offer to upgrade? 

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I am not seeing a SUB offer with the upgrade...

[JNA1]

Your spend sounds a lot like ours. I got the BCP because I will max out the $6000 @ 6% on the BCP and the $1500 @ 5% on my Disco (and then some!🙈)
The AF was worth it, in our case. In fact, I eventually want one more 5% rotator to cover all of our grocery spend for the year.
The 3% for gas (and pretty much all other gas station purchases also) is unspectacular , but it’s the best of my current cards, and based on our spend this year, we‘ll net an additional $50 next year in gas cash back next year over the 2% I got this year.

So far I’m loving ours!

[JNA1]

I got the $300 for spending $1000 on ours, so it was a no brainer for us.

[bergrides]

I spend about 7500 on groceries a year, so it is a good match for me.  Also my EZPass is on my BCP and that gets 3% back, and depending on work, I canspend alot on EZPass.