Should I upgrade my old Blue Cash to the Preferred?

**Ronin** · Jun 8, 11, 3:05 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** · Jun 8, 11, 9:55 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** · Jun 9, 11, 5:58 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

**tntexan72** · Jun 11, 11, 2:34 pm

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

**Mogul of Pineapples** · Jun 13, 11, 7:38 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.

**tntexan72** · Jun 14, 11, 10:41 am

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** · Jul 10, 11, 8:36 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!

**Mogul of Pineapples** · Jul 13, 11, 7:31 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.

**sen7inel** · Aug 1, 11, 8:58 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** · Aug 1, 11, 6:18 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

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