$75 annual CC fee or lower cash back percentage?

[ViragoStache]

Hello Mustachians!
I was looking for your thoughts on the two options of AmExp Blue (AB) or AmExp Blue Preferred (ABP).  Here are the details
AEB: NO ANNUAL FEE $50 bonus + 1 yr of Amazon Prime, then 3% cash back (CB) on groceries (up to 6k annually), 2% CB on gas
AEBP: $75 ANNUAL FEE $100 bonus + 1 yr of Amazon Prime, then 6% cash back (CB) on groceries (up to 6k annually), 3% CB on gas
And I think they both give 1% on the rest.

I have been shopping at some grocers that are cash only (Woodmans, Aldi) but still use the credit card for other groceries and gas of course.  Too much of our food budget is eating out, but we are working to reduce that and that means more grocery spending.  We are a family of 4 with two growing boys.

So is it worth it to take the card with a $75 annual fee (which I hate fees) or less cash back (which could cover the fee and more)?

[BEN_BANNED]

You can "game" the AmExp Blue Preferred by buying gas and gift cards from your grocery stores and getting the 6% back.

[kpd905]

You can "game" the AmExp Blue Preferred by buying gas and gift cards from your grocery stores and getting the 6% back.

This is what I do.  I make sure I max out the $6000 yearly spending at 6%.  So I get 6% back on gas, restaurants, groceries and cell phone.

I think the break even point for these cards is somewhere around $220 a month in the 6% category.

[JoshFire]

Go with the AMEX Blue Preferred. It's what I use, and there are a lot of little "deals" that aren't advertised :)

[kpd905]

Seems like the tie between the two cards comes at $208/month spending in the grocery category.  Anything above that and you should pay the fee.

[kpd905]

Seems like the tie between the two cards comes at $208/month spending in the grocery category.  Anything above that and you should pay the fee.

As I showed in my example, it actually depends on your grocery spending, your gas spending, and how many years you intend to hold the card (because of the bonuses).

If you don't max out the $6000 spending in groceries though, you'd be better off buying gas gift cards at the grocery store instead of getting 3% back on gas using the card.

[checkedoutat39]

You can "game" the AmExp Blue Preferred by buying gas and gift cards from your grocery stores and getting the 6% back.

And depending on the chain, earn fuel points with the gift card purchase.

Kroger runs 4x fuel points on GCs a few times a year; in my area a promotion is going on right now. If you buy ~15 gallons per fill-up, 4x fuel points works out to a 6% rebate just from the fuel points. Then add the rebate you get from your CC on top of that.