AMEX OBC Question

Anonymous · ‎10-17-2015

Does the extra rewards % kick in once you have 6.5k in reward category spend or total spend?

the majority of my purchases are in gas, food in various forms (restaurant, fast food & groceries), drugstores. Occasional Costco or target runs but I would use the new citi card in April for the former.

Im just trying to get a head start on figuring out what Amex should replace the Costco card.

-Cal- · ‎10-17-2015

total spend

Anonymous · ‎10-17-2015

What's an OBC? lol

Ghoshida · ‎10-17-2015

@Anonymous wrote:
What's an OBC? lol

AMEX Old "Blue Cash".

5% on groceries, gas, drugstores upto an annual spend of $50k. But you get 1% or less for the first $6.5k. Great card for those with very large spends.

NRB525 · ‎10-17-2015

@Anonymous wrote:
Does the extra rewards % kick in once you have 6.5k in reward category spend or total spend?

the majority of my purchases are in gas, food in various forms (restaurant, fast food & groceries), drugstores. Occasional Costco or target runs but I would use the new citi card in April for the former.

Im just trying to get a head start on figuring out what Amex should replace the Costco card.

Once Costco kicks AMEX to the curb, likely won't get "Grocery category" spend on any AMEX, if Costco even accepts AMEX after that. Restaurant/FF is not OBC category, and Target neither.

High Bal Jan 2009 $116k on $146k limits 80% Util.
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April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

longtimelurker · ‎10-17-2015

@NRB525 wrote:
@Anonymous wrote:
Does the extra rewards % kick in once you have 6.5k in reward category spend or total spend?

the majority of my purchases are in gas, food in various forms (restaurant, fast food & groceries), drugstores. Occasional Costco or target runs but I would use the new citi card in April for the former.

Im just trying to get a head start on figuring out what Amex should replace the Costco card.
Once Costco kicks AMEX to the curb, likely won't get "Grocery category" spend on any AMEX, if Costco even accepts AMEX after that. Restaurant/FF is not OBC category, and Target neither.

Yes, OBC is really a niche card for either

a) those with heavy grocery and/or drug store spend (only 4 drugstore chains are covered, but they are the big ones)

b) Those still willing to MS on it, although the cap gets in the way.

For high gas spend, there are better cards that give 5% without need for an additional spend.

takeshi74 · ‎10-17-2015

@Anonymous wrote:
Does the extra rewards % kick in once you have 6.5k in reward category spend or total spend?

Answered above but it is covered on the AmEx site:

https://www.americanexpress.com/us/credit-cards/blue-cash/25330

For your first $6,500 in purchases in a reward year, you will receive 1% on Everyday Purchases, and 0.5% on other purchases. After your first $6,500 in purchases, you will receive 5% on Everyday Purchases up to $50,000 and 1% on other purchases.

I guess it could be a bit confusing but "purchases" on its own means all purchases versus "Everday purchases" and "other purchases". The $6,5000 mark is determined by (all) purchases as the word is not qualifed with "Everyday" or "other".

@Anonymous wrote:
Occasional Costco or target runs but I would use the new citi card in April for the former.

Im just trying to get a head start on figuring out what Amex should replace the Costco card.

Were you using the True Earnings at Costco? It generally was not a good card for rewards on Costco purchases aside form gettting 3% on Costco gas and 2% on Costco travel.