Author Topic: Should I drop my AMEX Blue Preferred?  (Read 5583 times)

stlbrah

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Should I drop my AMEX Blue Preferred?
« on: September 21, 2015, 10:22:33 PM »
I recently decided to switch from a local supermarket chains to Walmart so I am considering Discover for my only CC. Walmart is significantly cheaper (a lot more than 6%) on most meats, bread, dairy, etc. Their produce costs a bit more, but produce is cheap. I am thinking of starting to use Aldis a bit too which doesn't give the 6% cashback either. The 6% is pretty much only if you go to a store that is not very frugal to begin with unless you only buy whats on sale rather than what you feel like buying. While I will still go to supermarkets from time to time, this seems to make the $75 yearly fee less appealing. I have heard you can use the card to buy visa gift cards, but I have never tried it - even if I did, it would just eliminate the 6% savings next time cancelling it out.

As far as gas, I only use AMEX blue preferred 9 months out of the year, and the other 3 I use discover when they have their round of 5% off gas. I don't spend 200/month on gas, but I used it as a scenario in case I do road trips or something. If I spent 200/month for 9 months, I would only get $54 cash back.

Finally, I hate the way Amex only allows a cashback in $25 increments. That is ridiculous. You pretty much always have to leave cash sit there until you can finally get to $25, and then wait again with an extra $8. I also like how with Discover I can get a Chipotle cashback card at a discount, AMEX doesn't offer these perks.

There is also the fact that my wallet will be simplified with only 1 card. I have a bit of a minimalist mindset.

What do you guys think?

tallen

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Re: Should I drop my AMEX Blue Preferred?
« Reply #1 on: September 21, 2015, 10:43:51 PM »
I'd cancel and find a card with a decent sign up bonus that you can meet the minimum spending requirements, rinse and repeat.

The Money Monk

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Re: Should I drop my AMEX Blue Preferred?
« Reply #2 on: September 21, 2015, 10:45:52 PM »
You could switch to the Barclay Sallie Mae card - 5% groceries, 5% gas, 5% at amazon.

Walmart still won't count as a grocery store, but the card has no annual fee. One of the best cards out there.

JimLahey

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Re: Should I drop my AMEX Blue Preferred?
« Reply #3 on: September 22, 2015, 12:13:50 AM »
You could switch to the Barclay Sallie Mae card - 5% groceries, 5% gas, 5% at amazon.

Walmart still won't count as a grocery store, but the card has no annual fee. One of the best cards out there.

That depends on the store. Most Super Wal-Marts and Targets are coded as grocery stores. So you get 5% back at those stores. Although I get most of my groceries at Aldi so it doesn't help me much ha. I use my Sallie Mae card for gas mostly along with the occasional purchase at Wal-Mart/Target/Amazon.

Jags4186

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Re: Should I drop my AMEX Blue Preferred?
« Reply #4 on: September 22, 2015, 03:33:19 PM »
Let's say you buy 12 $500 visa gift cards and use it for all of your regular day to day spend.

You'll earn $360 in cash back and pay $75 annual fee plus $71.30 in gift card fees leaving you with $213.60 in cash back earned--3.56% cashback. So basically, if you spend $6k/yr on stuff you'd otherwise only get 1% or 2% back it could be worth it if you want to switch your spending to visa gift cards.

NotJen

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Re: Should I drop my AMEX Blue Preferred?
« Reply #5 on: September 22, 2015, 03:46:34 PM »
I wouldn't cancel the Amex, but I would call and have it downgraded to a no-annual-fee card.  It will help lengthen your credit history and keep your total available credit up, if you care about those things.

I don't know if you've used them, but I love the Amex Offers that are available with Amex cards. I've gotten a lot of free stuff this year. I'm very much looking forward to learning what the Small Business Saturday deal will be this year.

stlbrah

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Re: Should I drop my AMEX Blue Preferred?
« Reply #6 on: September 22, 2015, 04:55:39 PM »
Let's say you buy 12 $500 visa gift cards and use it for all of your regular day to day spend.

You'll earn $360 in cash back and pay $75 annual fee plus $71.30 in gift card fees leaving you with $213.60 in cash back earned--3.56% cashback. So basically, if you spend $6k/yr on stuff you'd otherwise only get 1% or 2% back it could be worth it if you want to switch your spending to visa gift cards.

That would be a good idea, if manually paying your bills for a year is worth $213.60 to you. I would rather not have the $213 and have autopayment

stlbrah

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Re: Should I drop my AMEX Blue Preferred?
« Reply #7 on: September 22, 2015, 04:57:15 PM »
I wouldn't cancel the Amex, but I would call and have it downgraded to a no-annual-fee card.  It will help lengthen your credit history and keep your total available credit up, if you care about those things.

I don't know if you've used them, but I love the Amex Offers that are available with Amex cards. I've gotten a lot of free stuff this year. I'm very much looking forward to learning what the Small Business Saturday deal will be this year.

Is that the same card, but without the "preferred" option?

Jags4186

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Re: Should I drop my AMEX Blue Preferred?
« Reply #8 on: September 22, 2015, 05:08:02 PM »

I wouldn't cancel the Amex, but I would call and have it downgraded to a no-annual-fee card.  It will help lengthen your credit history and keep your total available credit up, if you care about those things.

I don't know if you've used them, but I love the Amex Offers that are available with Amex cards. I've gotten a lot of free stuff this year. I'm very much looking forward to learning what the Small Business Saturday deal will be this year.

I would not recommend this with AMEX. AMEX has a "once in a lifetime" bonus rule on personal cards. The no annual fee, Blue Cash Everyday has a $250 bonus offer right now.  I'd apply for that and once approved cancel the BCP. If you were to downgrade you'd forever lose that bonus potential as you would have already had the product.




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Rein1987

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Re: Should I drop my AMEX Blue Preferred?
« Reply #9 on: September 22, 2015, 05:31:24 PM »
Let's say you buy 12 $500 visa gift cards and use it for all of your regular day to day spend.

You'll earn $360 in cash back and pay $75 annual fee plus $71.30 in gift card fees leaving you with $213.60 in cash back earned--3.56% cashback. So basically, if you spend $6k/yr on stuff you'd otherwise only get 1% or 2% back it could be worth it if you want to switch your spending to visa gift cards.

I did similar things but not usually visa gift cards. I usually bought gift cards for the store I will go to get the 6% cashback, e.g., amazon gift card.

The Money Monk

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Re: Should I drop my AMEX Blue Preferred?
« Reply #10 on: September 23, 2015, 11:24:09 PM »
I wouldn't cancel the Amex, but I would call and have it downgraded to a no-annual-fee card.  It will help lengthen your credit history and keep your total available credit up, if you care about those things.

I don't know if you've used them, but I love the Amex Offers that are available with Amex cards. I've gotten a lot of free stuff this year. I'm very much looking forward to learning what the Small Business Saturday deal will be this year.

Is that the same card, but without the "preferred" option?

Yeah they have two versions of the card. Blue cash Preferred has an annual fee, but has 6%, 3%, on groceries and gas. The Blue Cash Everyday has no annual fee, but only 3%, 2% on groceries, gas.

charis

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Re: Should I drop my AMEX Blue Preferred?
« Reply #11 on: September 24, 2015, 05:02:24 AM »
I wouldn't cancel the Amex, but I would call and have it downgraded to a no-annual-fee card.  It will help lengthen your credit history and keep your total available credit up, if you care about those things.

I don't know if you've used them, but I love the Amex Offers that are available with Amex cards. I've gotten a lot of free stuff this year. I'm very much looking forward to learning what the Small Business Saturday deal will be this year.

Is that the same card, but without the "preferred" option?

Yeah they have two versions of the card. Blue cash Preferred has an annual fee, but has 6%, 3%, on groceries and gas. The Blue Cash Everyday has no annual fee, but only 3%, 2% on groceries, gas.


I just canceled my AMEX everyday after downgrading from the Preferred.  I hated both cards.  As you stated, the rewards program is not user friendly by any means.  You need to use increments of 25, you can't transfer between spouses.  Almost every other rewards card is better.  It wasn't worth it to me to hang onto a card that I basically stopped using.

Lady Fordragon

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Re: Should I drop my AMEX Blue Preferred?
« Reply #12 on: September 24, 2015, 07:33:34 AM »
I'd cancel and find a card with a decent sign up bonus that you can meet the minimum spending requirements, rinse and repeat.

Agree!  I've definitely been taking advantage of some credit card churning with great results.