What do I do with AMEX BCP?

[Anonymous]

Hey, guys.

My wife and I have switched to Target for almost all of our groceries. We use Redcard, plus their subscription service.

I have found the prices more competitive than other groceries, and we get 5% from the card, with no annual fee.

What would you do with AMEX BCP in this case? I could downgrade to the free version, but none of the other categories (gas. groceries, department stores) are of use to me. I don't drive much, rarely shop in department stores, and rarely would need to stop in another grocery store. The cash Magnet at 1.5% is useless to me, since I already have citi DC for 2%.

AMEX is oldest tradeline (2001) and has a $30,000 limit, so I don't want to give it up. Target is 5% with no annual fee, so that outtrumps AMEX BCP's 6% with annual fee. In reality, for the last several years, BCP's only use for us was groceries. Now we go to Target.

Any suggestions?

[Anonymous]

Downgrade it to BCE. That way you keep the old trade line but lose the AF. Most people make a trip to a regular grocery store once in awhile. I actually compared Target to King Soopers (the Kroger brand in CO) and while Target comes out ahead overall, King Soopers' buy 5, save 5 sales and coupons blow Target away but regardless, I would definitely keep a limit that large and that old and toss a small charge or use AMEX offers on it. 

[Anonymous]

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@Anonymous wrote:

Downgrade it to BCE. That way you keep the old trade line but lose the AF. Most people make a trip to a regular grocery store once in awhile. I actually compared Target to King Soopers (the Kroger brand in CO) and while Target comes out ahead overall, King Soopers' buy 5, save 5 sales and coupons blow Target away but regardless, I would definitely keep a limit that large and that old and toss a small charge or use AMEX offers on it. 

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Yes, with the limit and age, I would do the downgrade.    I might not bother to spend to keep it alive though, depending on other cards.

[kdm31091]

You pretty much already know all your options: downgrade to BCE, downgrade to Magnet, or cancel the account.

I would just downgrade to BCE, throw it in a drawer, and use it on the random occasion you do have to run to the "real" grocery store. I agree with you that between Target (and Costco!), my actual grocery spend isn't very much, so the BCP wouldn't be worth the fee.

Normally, I think it's fine to close useless accounts, but since it's a very old account with a large limit, I would probably just downgrade and use it once in awhile.

[Mv350]

+1 on the PC to the BCE. That way there would be no annual fee.

[mongstradamus]

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@Anonymous wrote:

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@Anonymous wrote:

Downgrade it to BCE. That way you keep the old trade line but lose the AF. Most people make a trip to a regular grocery store once in awhile. I actually compared Target to King Soopers (the Kroger brand in CO) and while Target comes out ahead overall, King Soopers' buy 5, save 5 sales and coupons blow Target away but regardless, I would definitely keep a limit that large and that old and toss a small charge or use AMEX offers on it. 

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Yes, with the limit and age, I would do the downgrade.    I might not bother to spend to keep it alive though, depending on other cards.

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After i downgraded my BCP to BCE I haven't touched it for last 3 or 4 years. I haven't had any issue with them closing it. I don't know if it matters that I am using other Amex cards so they don't care as much that i don't touch my bce.

[Anonymous]

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@mongstradamus wrote:

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After i downgraded my BCP to BCE I haven't touched it for last 3 or 4 years. I haven't had any issue with them closing it. I don't know if it matters that I am using other Amex cards so they don't care as much that i don't touch my bce.

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Yes, my experience suggests that keeping at least one card active is enough.  I have only 3 Amex cards (hardly any compared to some) and in the past two were left unused for more than two years.    And now that I have redowngraded by BCP, it looks like I won't be using any!  So lets see a year or two from now.

[Anonymous]

does your target have a meat dept. where you can buy steaks and things like that? mine doesn't, and the produce dept. is very tiny, almost non-existent. it's got a huge frozen food section, and lots of canned food though.

[Anonymous]

Agree with downgrading it and puttting a small charge in it monthly or occasionally. But I would also scan Amex offers and use those that fit. I get a lot back each year from them, much more than reward dollars. 

[Aim_High]

Downgrade to BCE with no-AF.

Use to fill-in for grocery purchases at 3% for whatever you can't find at Target or when the regular supermarket has good sales.

Use it to buy gift cards for 3% off any purchases where you don't already get that.  (Prepaid movie tickets?  Do you already have a 3% restaurant card?  Retail stores where you shop?  Do you already get at least 3% off Amazon?  3% off on eBay?  There are tons of gift card options.)

If you truly have no use for it, SD it and just charge a small purchase on it once or twice a year to keep it open.  Don't give up your $30K oldest tradeline.