Should I upgrade my old BC to the Preferred?

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2 posts
usedtobeanyer
 
Posts: 1
Joined: Mon Oct 01, 2012 12:26 pm
Location: NJ

Should I upgrade my old BC to the Preferred?

Postby usedtobeanyer » Mon Oct 01, 2012 12:33 pm

Hello, I have a few questions on Amex Blue Cash. First, based on the sticky in this thread, it appears I am grandfathered in to the older program. When I look at my account online, it says I should consider upgrading to Preferred to avoid the $6,500 threshold. Is there really a big difference if I ask them to put me into the new program?

Not Preferred, but the one mentioned in the sticky that was recently changed? Between my wife and I, we spent $28,000 last year and our reward was a bit over $500.

Second, based on my spend last year, is Preferred worth it? We spent about $5,500 last year on groceries and nearly $4,000 in gas.

Thanks all.


maporter87
 
Posts: 1
Joined: Mon Oct 01, 2012 2:18 pm
Location: Vienna, VA

Postby maporter87 » Mon Oct 01, 2012 2:29 pm

You earned $500 last year. For it to be "worth it" to switch to Preferred you would need to earn more than $575 to cover the AF. If last year's spend is predictive of next year's spend, it should be worth it. Here is the math:

Groceries: $5,500 x 6% = $330 cash back
Gas: $4,000 x 3% = $120 cb
Everything Else: $18,500 x 1% = $185 cb

Rewards = $635, and this is low-balling since Preferred also gives 3% on department store purchases which I may have included in your "Everything Else" category. I'm thinking that after accounting for the AF, you should earn $50-100 in additional rewards by making the switch.



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