Converting Amex Blue Cash to Blue Cash Preferred Card

by Michael on Jan 25, 2013 · 1 comment

American Express (Amex) Logo

Three weeks ago, I noted that Amex decided to limit the generous 6% grocery rewards on their Blue Cash Preferred card to your first $6k in grocery spending.

Despite this change, I’ve decided to convert (upgrade?) my old Amex Blue Cash card to the Blue Cash Preferred version. Yes, this means that I’ll have to start paying a $75 annual fee, but I’ll also get that fat 6% on up to $6k in grocery purchases.

With four growing boys, we spend a ton on groceries every month. And if we fall short of the $6k max, we can always pick up some gift cards to our preferred stores to help max out the grocery rewards.

Even after factoring in the annual fee, we’ll clear $285 on $6k in grocery purchases. That’s a solid 4.75% without having to deal with rotating reward categories. And that’s ignoring the 3% on department store purchases.

Why convert instead of just applying for a new card? Good question — especially since Amex is currently a $100 signup bonus on the Blue Cash Preferred card.

As it turns out, I’m oddly attached to this account. In fact, it dates way back to 1997 when I first applied for an Amex Optima card, and I’d rather not throw away 15 long years of credit history. Silly? Perhaps. But true.

Sure, I could keep the old account and apply for a new one but I prefer to keep things (relatively) simple and adding a new account doesn’t help with that. I also don’t want to deal with linking up a new card for billpay, etc.

So… There you have it. In just 7-10 short business days, I’ll be slipping a fancy new Amex Blue Cash Preferred card into my wallet. 🙂

1 DGS September 16, 2013 at 9:16 pm

By adding a new Amex account will actually help your FICO score rather than hurting it. You see, Amex will backdate any new accounts you open to the year that you opened your first Amex. If your BCE is dated 1997 and you are approved for BCP or any other Amex card, both will be reported as opened in 1997. This will help the AAoA factor of you FICO. The only thing that it will cost you is a hard inquiry.

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