BCP vs BCE

[LilNYC]

Can someone please explain to me why so many ppl on these forums keep applying for the BCE over BCP? It's my understanding that the eligibility requ are the same & you can PC after a yr from the BCP to BCE to avoid the AF. Is my math wrong- You get $150 bonus on the Preferred, which is $75 after the AF, $100 with the everday. So basically as long as you can rack up more than $25 with Pref. version, it's the smarter way to go? Even If the only thing you charged on the card are groceries for $850, the extra 3% translates to $25.50 & you're ahead of the game. $1000 at dept. stores and it's an extra $12. Am I wrong? Seems like BCP is the way to go initially & then based on your spending habits PC after a yr to no fee version.

[flowfaster]

It all depends on if you spend over $2500 a year on groceries.  I spend about $500 a month on groceries, so it makes sense for me.

[pkosheta]

Initial Reward aside,

$75 annual fee vs. $0,

comparing only 6% on groceries vs 3% on groceries you would need to spend 2500 a year on groceries to come ahead with BCP (75.00/.03)...which is just over 200 a month.  If you exceed this, then BCP is better.  If not, then bce is better.  extra on dept stores and gas is gravy at that point if you dont have a better card or dept storecard or shop online thru rewards malls.  but then when you add the extra signup bonus and higher refer a freind bonus bcp looks even better.  I live on taco bell and wendys and grocery shop for basics on occasion so ill keep using my 3% PenFed Plat and save that additional Amex card slot for something else...SPG is calling me..., but your results may vary.

[Anonymous]

LilNYC makes a good point.  Giving the current offers.  The BCP is a much better deal as it only requires you to rack up more than $25 in extra bonus money with the extra bonuses.  That is only like $833 more in groceries a year.  Of course, the next year is different, but you can easily PC to BCE if it doesn't make sense.

[Anonymous]

The BCP works for me and, its only $75 a year -- I waste more than $75 in a year's time on groceries so, its a no-brainer in my opinion.

[Anonymous]

Just a friendly reminder. Assuming that you use none of the other categories greater than 1% on BCP, the breakeven point is $2,500/year spent on groceries to cover the annual fee -- which is $208.34/month or $48.08/week.

If you use this card for gas or department store spending as well, the extra 1% cash back over BCE reduces the breakeven point (both of these categories are 2% on BCE and 3% on BCP).

[Anonymous]

Your analysis is correct OP. I went through the same thought process a couple of years ago. You should definiteely look into someone referring you; they can get a $75 bonus if you qualify for the card, and you can split that with your friend making the BCP an even more obvious choice.

[Anonymous]

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@Anonymous wrote:

Just a friendly reminder. Assuming that you use none of the other categories greater than 1% on BCP, the breakeven point is $2,500/year spent on groceries to cover the annual fee -- which is $208.34/month or $48.08/week.

If you use this card for gas or department store spending as well, the extra 1% cash back over BCE reduces the breakeven point (both of these categories are 2% on BCE and 3% on BCP).

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This was my reasoning for the BCE.

I'm well beyond being a low profile spender. I spend less than half that amount a year on groceries.

And the last thing I need is to spend potential cashback on an annual fee. From my standpoint, I'd actually be losing money that way.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Just a friendly reminder. Assuming that you use none of the other categories greater than 1% on BCP, the breakeven point is $2,500/year spent on groceries to cover the annual fee -- which is $208.34/month or $48.08/week.

If you use this card for gas or department store spending as well, the extra 1% cash back over BCE reduces the breakeven point (both of these categories are 2% on BCE and 3% on BCP).

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This was my reasoning for the BCE.

I'm well beyond being a low profile spender. I spend less than half that amount a year on groceries.

And the last thing I need is to spend potential cashback on an annual fee. From my standpoint, I'd actually be losing money that way.

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Ahh, the beauty of diversity!  

According to last year's totals, we spend (on average) $150 a week at the grocery store.  With 52 weeks in a year that comes to $7,800 a year on groceries.  BCP is the card for me!!! 

[Anonymous]

Most definitely.

Maybe once I marry, I'll consider the switch, but my current profile just doesn't mesh with the BCP.

That's one of the things I love about the versatility of credit cards though.