Too many CCs with AF?

[CreditMENA]

Hey all,

I'm busy trying to expand my credit portfolio and maximize my rewards. I'm looking to app for the AMEX Blue Cash Preferred Card, but I'm worried I'm taking too many cards with an annual fee. My current lineup:

-Chase Sapphire Preferred ($10,000 limit, $95 AF)

-Southwest RR Premier ($5,000 limit, $99 AF)

-Random Wells Fargo ($4,000 limit $0 AF)

I hit the right timing and got 50,000 points when I received both the CSP and the Southwest card - I use the CSP 99% of the time and only use the Southwest card when I book Southwest flights. One of the perks of being a Southwest Premier member is an annual point bonus of 6,000 points which is the equivalent of $100 anyways, so it kind of cancels out the AF.

The CSP is great for my dining and travel expenses, and the AMEX BCP gives cash back on gas, groceries, and department stores - which basicaly rounds out my spending habits. However, it also has an annual fee of $75 bringing my grand total to $269/year simply to use credit cards. 

So the question remains - do I app for it or not? I'm also a member of NFCU but do not have a credit product through them. Thanks in advance!

[7PM789]

You're merging two different cards in to one.

The blue cash everyday has no annual fee, the blue cash preferred has an annual fee.

[E150GT]

If you arent going to use it enough to make use of all the fees then no. You could get the Blue cash everyday for free though. 

[CreditMENA]

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@7PM789 wrote:
You're merging two different cards in to one.

The blue cash everyday has no annual fee, the blue cash preferred has an annual fee.

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Sorry about that, you're correct. Fixed the original post.

I guess I could go for the Everyday card...gives 3% instead of 6% at supermarkets and 2% instead of 3% at gas stations but for a single guy I don't really spend that much at supermarkets anyways..

[7PM789]

The B.C.E. gives 3% back on groceries
The B.C.P. gives 6% back on groceries

The B.C.E. gives 2% back on gas
The B.C.P. gives 3%back on gas

Both give 1% back on everything else.

The annual fee on the B.C.P. is $75.00

[CreditMENA]

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@7PM789 wrote:
The B.C.E. gives 3% back on groceries
The B.C.P. gives 6% back on groceries

The B.C.E. gives 2% back on gas
The B.C.P. gives 3%back on gas

Both give 1% back on everything else.

The annual fee on the B.C.P. is $75.00

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Got it, thank you for the clarification. Would the Everyday card make more sense for me then?

[SnackTrader]

You need to figure out if you spend more than $210 per month at grocery stores. That's where the breakeven point for the AF is. 

Also - it sounds like all of the AFs are justified, so I wouldn't worry too much about adding another if it is also justified in terms of reward structure.

[navigatethis12]

When you get enough rewards to just cancel the annual fee, it's not worth it to have the card. I would say you have to make at least twice the annual fee to make it worthwhile.

[SnackTrader]

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@navigatethis12 wrote:

When you get enough rewards to just cancel the annual fee, it's not worth it to have the card. I would say you have to make at least twice the annual fee to make it worthwhile.

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$2,500 in grocery spending is twice the AF for the BCP - which leaves the account holder with $150 in rewards, but an AF of $75 for a net total of $75. That is the same amount as a person would have if they spent $2,500 with the BCE. All spending after $2,500 in a year earns better rewards than the BCE - so for those families reaching the $6,000 max it is very worth it. 

I would say that it is very hard for a single guy to make the AF on the BCP worth it unless you NEVER eat out and have lots of BBQs or something. Or if your grocery store sells alcohol. 

[CreditMENA]

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@SnackTrader wrote:

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@navigatethis12 wrote:

When you get enough rewards to just cancel the annual fee, it's not worth it to have the card. I would say you have to make at least twice the annual fee to make it worthwhile.

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$2,500 in grocery spending is twice the AF for the BCP - which leaves the account holder with $150 in rewards, but an AF of $75 for a net total of $75. That is the same amount as a person would have if they spent $2,500 with the BCE. All spending after $2,500 in a year earns better rewards than the BCE - so for those families reaching the $6,000 max it is very worth it. 

I would say that it is very hard for a single guy to make the AF on the BCP worth it unless you NEVER eat out and have lots of BBQs or something. Or if your grocery store sells alcohol. 

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Great point - I can tell you right now I don't spend $2,500 on groceries. Looks like the BCE would be the logical choice..eventhough now I'm weighing the marginal utility against just keeping those charges on my CSP and racking up more rewards points.