If you can max out 6k per year, you will net $85 with BCP vs BCE. That said, if you end up joining Sam's for its 5% gas, some of that grocery spending will end up at Sam's so I would look at the whole picture before making the move, meanwhile get that CLI going, it shouldn't affect the upgrade offer.
I just closed my BCP and moved limit to BCE before the AF was about to hit (1st year waived), between BCE and Discover/Freedom 5% at either grocery or Costco, the math just didn't add up for me.
My math: 6% on $6,000 groceries = $360. $360 minus $95 AF = $265. Am I missing something?
I’m with Costco but would consider a Sam’s membership. I’ll look at their benefits in a moment. I thought AMEX grocery rewards didn’t apply to Costco/Sams. I’m not considering Sam’s at this time because I don’t want a HP at this time.
Your math is missing the opportunity cost of 3% you would get from using the no AF BCE, so it's 3% on $6000 = $180 -$95 = $85. This is why BCP doesn't make sense for cashback people with a full deck which will most likely include Freedom and Discover, assuming each has a 5% quarter on grocery, the math then becomes 3% on $3000 + 1% on $3000 = $90 + $30 = $120, $120 - $95 = $25. That is assuming maxing out $6000, not easy to do being a wholesale club member and Freedom/Discover 5% wholesale club categories.
I wasn't implying Amex rewards applies to wholesale clubs, just saying some of the spending would go to wholesale cubs if you join Sam's because it's probably cheaper than supermarkets even with BCP 6%. Did not know you already have Costco.
BCP, you will make $265 after AF vs $180 with BCE, net gain of $85.
@oldman87: I never heard of opportunity cost. I’m just now starting to use my BCE for groceries. If I am going to put $6k of grocery spend on a credit card annually moving forward, which of these two cards would you recommend?