Should I upgrade my old Blue Cash to the Preferred?

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Ronin
 
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Should I upgrade my old Blue Cash to the Preferred?

Postby Ronin » Wed Jun 08, 2011 5:05 pm

Hi, I'm a new user here on the forums and I have a question for you all about the AMEX Blue Cash Preferred.

I currently have the old standard Blue Cash which I've used over the past few years. I am debating if I should upgrade to the preferred version based on my spending pattern. I don't mind the AF if I can make higher rewards over the AF cost. From my annual summary here is what I spent on my AMEX last year.

Total: $33784

Grocery: $8485
Gas: $3937
Drug: $20
Department: $159
Everywhere Else: $21183

Grocery and gas are my biggest expenses obviously, hence the reason I have been using this card. I don't spend much at department stores or at drug stores. I normally order stuff online so I don't shop at department stores at all.

Based upon my spending pattern, would to be wise to just keep my old card or upgrade to preferred?

Thanks for any advice.


Acquitted
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Postby Acquitted » Wed Jun 08, 2011 11:55 pm

If you are spending 8500 a year on groceries, the preferred card is a no-brainer. I think the annual fee is $75 and at 8500, the preferred card will bring you back $250+ more than the regular card. After the fee, that's a $175 gain.

craigm1
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Postby craigm1 » Thu Jun 09, 2011 7:58 am

I'm in the same situation keep in mind you will lose 2% on the gas and .25% on the everyday spending for me it's a wash and i figure if gas goes even higher I'm in a good situation that's why I didn't do it. I'm on track to spend close to 50k this year on amex for the smaller spender who it took months to break through the $6500 first trance it makes sense. I don't think it does for us also 5% is nice at the drugstore!

craig
Current Cards: American Express:Grandfathered Blue Cash CL 34k member since 89
Chase Freedom CL 7.5k member since 04
Chase Marriot Rewards Premier CL 20k member since 13
Chase Sapphire Preferred CL 25K member since 13
Bank Americard Cash Rewards Signature Visa CL 14k member since 11
Discover Cashback Bonus $10.5k member since 11
US Bank Cash + Signature Visa 19k member since 12
Citibank Thank You Preffered World Mastercard $16.5k member since 14

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tntexan72
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Postby tntexan72 » Sat Jun 11, 2011 4:34 pm

$8485 you spend on grocery at 6% ($509). Your AF is only $75, so getting the Preferred card is ideal for you.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jun 13, 2011 9:38 pm

One drawback would be losing out on the 5% on gas, which you do spend nearly $4k on. For most people the newer version of the Blue cards make more sense but in your case I'm not sure. I would actually be hesitant to upgrade because you won't be able to switch back afterward. Since your old Blue account is no annual fee I would consider keeping that open and then opening a new account for the Preferred. At the end of the day having both accounts will cost you the same amount as having only the Preferred, but the difference is that you will have that old Blue account to fall back on if you change your mind. Here is CCF's review of the AmEx Blue Cash card you might find helpful.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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tntexan72
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Postby tntexan72 » Tue Jun 14, 2011 12:41 pm

I agree on the drawback to losing the 5% cashback with gas. Perhaps getting a 2nd card would be ideal? Most ppl I know including myself have a few CCs to maximize their rewards for hotels, gas, airline, etc...A discover open road would be an ideal card for gas rewards.

sen7inel
 
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Postby sen7inel » Sun Jul 10, 2011 10:36 am

Hello everyone,

I have the old-style Blue Cash card with 5% back on groceries/gas/drugstore after $6500, and I'm contemplating switching to Preferred for $75/year, but can't seem to reliably figure out which is the better deal for me. To date my spending breaks down as follows for the year:

$1797 gas
$2906 grocery
$198 drugstore
$17715 everything else

My spending habits have been pretty steady for the last two years and don't foresee any change any time soon - should I consider upgrading or stick with my current card? Many thanks!

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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Jul 13, 2011 9:31 pm

sen7inel, how is that 17k spread out over one year? Is it evenly? If so, that would mean based on that and your other spending, the 5% would probably kick in around month 3 or 4. In other words, around 2/3 of the year you would be getting 5% on those 3 categories.

If that is your spending year to date (as in, the past 6-7 months of 2011) then it would definitely make sense for you to stick with the old Blue Cash due to the annual volume of your spending.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

sen7inel
 
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Postby sen7inel » Mon Aug 01, 2011 10:58 am

Mogul of Pineapples,

Thank you for your response! Yes, my "everything else" spending is fairly even and consistent. I thought it would be a good idea to hold on to the old blue cash, but wanted to check with the experts ;) Thank you again for your time and insight!

craigm1
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old amex cash

Postby craigm1 » Mon Aug 01, 2011 8:18 pm

5% gas and 1.25% on everything else that's why I'm keeping the old cash card, bottom line if your a light spender new one is better.

gas $3163
grocery $6268
drugstore $1084
everything else $25,154

anniversary is end of November

my everyday is 29% of spending the average account holder is 18%

last year in the calendar year I spent $31k
this year so far I have spent $30k
have a maxima that takes super only 5% helps take the sting away at the pump!

craigm
Current Cards: American Express:Grandfathered Blue Cash CL 34k member since 89
Chase Freedom CL 7.5k member since 04
Chase Marriot Rewards Premier CL 20k member since 13
Chase Sapphire Preferred CL 25K member since 13
Bank Americard Cash Rewards Signature Visa CL 14k member since 11
Discover Cashback Bonus $10.5k member since 11
US Bank Cash + Signature Visa 19k member since 12
Citibank Thank You Preffered World Mastercard $16.5k member since 14



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