BCE/Sallie Mae combo or BCP?

Anonymous · ‎09-08-2015

Help me decide if I should app for Sallie Mae to use the Sallie Mae/BCE combo for gas and groceries, or wait until next May and just upgrade to BCP.

Here is how the math would breakdown:

Sallie Mae: I would max out at $150 cash back per year

BCE: could use after monthly Sallie Mae max, which would net me about $46.80 per year

BCE/SM combo would net me a yearly cash back savings of $196.80/year

BPC: If I waited until May 2016, when my BCE may be eligible to upgrade to BCP, I could earn $273.60, which would net me $198.60 after the annual fee.

So two more dollars with the BCP, but I would have an AF card. I'm leaning towards the BCP option, since I would not have to take another HP and new TL by not apping for Sallie Mae. I should also take into account the Discover 5% gas period, which will essentially be 10% with the double deal (if they offer the gas quarter in 2016). If I bought gas cards for the year with my Discover instead of using the other cards, then using groceries alone, BCE/Sallie Mae would net me $168/year and BCP would net $141 after the fee.

What should I do? All opinions welcome! And I realize, I am probably fussing a little too much about a couple of dollars. But I think that spending a few minutes to determine what is more profitable is worth saving a few bucks.

kdm31091 · ‎09-08-2015

I prefer to condense spend vs spreading it across many cards. So in my opinion, for simplicity, I'd just go for BCP since it seems you can justify it. As you said, you can get it with no HP/AAOA ding, and the cap is a bit more reasonable than the one on Sallie.

Anonymous · ‎09-08-2015

To be clear, the gas limit and the groceries limit are separate. You have a limit of $250 for gas and a separate limit of $250 for groceries. Therefore, if you spend $240 on gas and $170 on groceries, you will get 5% back on each. Maxing the card on gas & groceries gets you $300 back per year.

Does this change your math at all?

Anonymous · ‎09-08-2015

@Anonymous wrote:
To be clear, the gas limit and the groceries limit are separate. You have a limit of $250 for gas and a separate limit of $250 for groceries. Therefore, if you spend $240 on gas and $170 on groceries, you will get 5% back on each. Maxing the card on gas & groceries gets you $300 back per year.

Does this change your math at all?

Yes it does! Thank you! I was reading about the Sallie Mae last night and I thought that the grocery and gas was a combined $250/mth. I need to rethink this now. Thank you so much!

Anonymous · ‎09-08-2015

Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

kdm31091 · ‎09-08-2015

@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

$18 a year is really not much money, and you are spreading that across 2 cards vs just using the BCP.

To each their own, but I'd just upgrade to BCP in this situation, with not wanting a new account etc.

Anonymous · ‎09-08-2015

Something else to consider is where your grocery shopping takes place. Technically, BCE/BCP is for "supermarkets," not groceries. While this doesn't seem to be a huge difference, I've found some mom and pop shops that SM covers that Amex doesn't. Additionally, some Walmarts and Targets count for groceries, but I don't think they do for supermarkets. However, I haven't tested that portion on my Amex card.

kdm31091 · ‎09-08-2015

@Anonymous wrote:
Something else to consider is where your grocery shopping takes place. Technically, BCE/BCP is for "supermarkets," not groceries. While this doesn't seem to be a huge difference, I've found some mom and pop shops that SM covers that Amex doesn't. Additionally, some Walmarts and Targets count for groceries, but I don't think they do for supermarkets. However, I haven't tested that portion on my Amex card.

Right, but if you want a guaranteed 5% at Target you can just get the debit/credit Redcard. For Walmart yes, Sallie is more likely to count it vs BCP.

Anonymous · ‎09-08-2015

@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.

Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.

Anonymous · ‎09-08-2015

@Anonymous wrote:
@Anonymous wrote:
Now knowing that the cap is separated on Sallie Mae, it looks as though I would net $216 with the Sallie/BCE combo, which is more than the $198 I would get with BCP. I am still leaning towards the BCP, though. That extra $18 from Sallie Mae probably isn't worth the HP and AAoA ding. I really hate leaving money on the table, though. Geeze, I'll have to think this one over for a while.
Another thing to consider is the non-shared features. So Sallie Mae gives 5% back at bookstores, including Amazon, up to $750 a month. BCP gives 3%, uncapped, at select department stores. Those differences can easily swamp the $18, depending where you spend.

Well then you'd also have to mention for the BCP all the gift cards (includes Amazon) available at the 5% back grocery stores!