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@SnackTrader wrote:$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.
I was actually referring to when CreditMENA said the 6000 miles cancels out the annual fee. I should have said more than double, not just double.
I spend a moderate amount on groceries (being a vegetarian is not cheap), so I went for the Blue Cash Everyday over the Preferred last year. I really am just against annual fees, so even if it offered 10% back, I would have still gotten the Blue Cash Everyday. I am sure there are people who do get the Blue Cash Preferred and don't really make back the annual fee though.
@CreditMENA wrote: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.
Unless you are able to convert the Chase Sapphire Preferred points at a rate of three cents per points, it makes more sense to get the Blue Cash Everyday, or the Citi Thank You Preferred for the 5% on groceries.
The Sallie Mae credit card also gives 5% back on groceries, but has a $250 a month cap.
@navigatethis12 wrote:
@SnackTrader wrote:$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.
I was actually referring to when CreditMENA said the 6000 miles cancels out the annual fee. I should have said more than double, not just double.
I spend a moderate amount on groceries (being a vegetarian is not cheap), so I went for the Blue Cash Everyday over the Preferred last year. I really am just against annual fees, so even if it offered 10% back, I would have still gotten the Blue Cash Everyday. I am sure there are people who do get the Blue Cash Preferred and don't really make back the annual fee though.
They don't buy enough gift cards for birthdayChristmas presents.
@youngandcreditwrthy wrote:
Pretty sure the Amex website says you only need to spend $25 a week on groceries to take care of the $75 AF on the BCP.
@$100 per month x.06 = $6 per month @Anonymous mos= $72 annually..about right ;-)
If you only spend that much what is the benefit? What I'm saying is that if you spend enough to just make the annual fee, the card is not worth it. As SnackTrader pointed out, getting $150 in rewards is till pointless because the $75 annual fee gives you the same you would have gotten if you had the Blue Cash Everyday. They put that there so people who do spend that little bit will think it's a great deal.
Which is why I don't have the BCP.
I was simply noting the innacurate info provided by our fellow poster :-)
otoh, the words "preferred" scrolled across the side of the BCP are pretty :-) lmao.
I guess we just have differing ways of looking at it.
fact is though: you don't need to spend $210 a month just to break even.
again, I have the BCE lol :-)
To respond to the title of the post, rather than the OP's actual question (and I agree with the responses here that the BCP is probably not right for this person's spend).
There does seem to be a lot of almost knee-jerk reaction towards annual fees, with people rejecting a card merely because it has an annual fee. So just a reminder that this is not fully rational!
For any card that you consider, the questions should always be: For the next year, given my expected spending patterns and my goals (cash back, travel etc) will:
a) this card provide net rewards over any annual fee or other charges (redemption costs etc)
b) AND, is this card superior for this purpose over other cards that I could probably get.
So annual fees raise the bar to overcome for both a and b over cards that don't have them, but in some cases, an annual fee card will be the best choice.
IF your AF card passes the test, to me the only reason to be more cautious is if there is a possibility that your spending habits might change (e.g. you move and the supermarkets in your new place don't take Amex, making the BCP a bad choice). This impacts all cards of course, but with an annual fee you are paying out real money rather than merely not being able to get expected rewards, which feels worse.
Note that this is numbers-based view, so I am ignoring more subjective factors such as "I really want a relationship with Amex because, well, because" and "I am a total dork who thinks metal cards make me a better person" (It's time for my gratuitous insults).