Blue Cash Everyday vs Preferred Analysis

Hello!

I’m looking for some guidance regarding the Blue Cash Everyday vs. Preferred cards. I’ve seen many discussions about how much grocery spending it takes to make the annual fee of the Preferred card worthwhile (around $3,167 in groceries annually). However, I haven’t seen calculations that factor in the Everyday card’s 3% cashback on online shopping.

If you’re maxing out the grocery spending at $6,000 per year, how much do you need to spend on online shopping for the Everyday card to be more beneficial?

I’m revamping our credit cards for my wife and me, aiming for a simple two-card setup focused on our main spending categories, such as groceries, gas, and online shopping, with travel benefits being a bonus. I initially considered pairing the Costco Visa (for cashback on gas and in-store purchases) with either the Blue Cash Preferred or Everyday for groceries. Is it better to get the BCP and a 2% catch-all card instead?

It’s ridiculous that the $95 annual fee card has the same grocery cap as the no fee card. They need to change this.

Kameron said:
It’s ridiculous that the $95 annual fee card has the same grocery cap as the no fee card. They need to change this.

Absolutely agree!

Kameron said:
It’s ridiculous that the $95 annual fee card has the same grocery cap as the no fee card. They need to change this.

The original free Blue Cash card used to offer 5% back up to a $50k limit in groceries and gas but had a low cashback rate until $6,500 was spent. AmEx reduced the benefits when they introduced the BCE and BCP, likely because high spenders could earn a lot with the free card.

@Francis
And that $50k limit was also reduced. The card was part of a significant controversy and a landmark IRS tax ruling clarifying that cashback and reward points aren’t taxable. Some people made a significant amount of cash back, which led Amex to adjust the card.

@Paden
Interesting. I still have the original Blue card, and AmEx honors the $50k limit.

Francis said:
@Paden
Interesting. I still have the original Blue card, and AmEx honors the $50k limit.

Moving to BCE was probably a bad decision on my part. :weary:

Another consideration, though less impactful for some, is the 6% cashback on streaming with the BCP.

Dean said:
Another consideration, though less impactful for some, is the 6% cashback on streaming with the BCP.

Gas and transit rewards are valuable too, especially for those frequently using Uber or public transport.

@Briley
I hadn’t considered transit; I use it for some Uber and Lyft rides.

Dean said:
Another consideration, though less impactful for some, is the 6% cashback on streaming with the BCP.

That’s a valid point; thanks for mentioning it!

A major difference is that the BCP doesn’t count Walmart as a grocery store, but using Walmart Pay allows you to earn 3% cashback on online purchases, which is crucial for my grocery shopping at Walmart.

@Bevan
Also, the BCE offers similar benefits with Disney+ and Hulu and a 3% gas bonus without an annual fee.

Juno said:
@Bevan
Also, the BCE offers similar benefits with Disney+ and Hulu and a 3% gas bonus without an annual fee.

You can get the Disney+ and Hulu bundle around Black Friday for about $3/month.

@Bevan
I have BCE, and purchases at Target also don’t count as groceries, similar to Walmart.

Amex BCE is fantastic if you hold five or more cards.

Amex BCP is preferable if you plan for a simple 2-3 card setup, allowing you to maximize the annual fee value.

Nicol said:
Amex BCE is fantastic if you hold five or more cards.

Amex BCP is preferable if you plan for a simple 2-3 card setup, allowing you to maximize the annual fee value.

Thanks for that insight!

If you get the Preferred before the Everyday, it locks you out of the Everyday’s sign-up bonus due to Amex’s family policy. Most folks get the Everyday first and then upgrade to the Preferred after a year.

@Emma4
Thank you! I appreciate the clarification!

@Emma4
Interesting! I see others doing the opposite – signing up for BCP and downgrading to BCE before the annual fee kicks in.