If you haven’t already heard, the new biggest thing in the credit card world is the American Express Blue Business Plus. The Blue Business Plus offers 2X Membership Rewards points on all purchases up to $50,000/year. Additionally, the card doesn’t have an annual fee. It just so happens that I’m in the market for a new everyday spend credit card. I’m torn between taking out the Everyday Preferred vs Blue Business Plus. Let’s analyze both and see which card wins!
My Family Credit Card Usage
I want to start by saying that ranking credit cards head to head isn’t easy. Most noteworthy, it’s important to note that our family uses two credit cards. Basically it keeps things simple, and most importantly, my wife doesn’t want to kill me. So I’m aware that there might be better combinations out there if you’re willing to rotate 4-5 credit cards for specific purchases. Anyway, we use a Chase Sapphire Reserve for travel and dining, with a second card for all other purchases. Until now that second card has been our SPG American Express, but we’re long overdue for an upgrade.
Assumptions: Everyday Preferred vs Blue Business Plus
For the purpose of this exercise, we’ll assume the following:
- A minimum 30 transactions per month to attain Everyday Preferred 50% bonus
- $1500/month spend: $500 groceries, $250 gas, $750 other non bonus
- Membership Rewards valuation of 1.8/cents each
Everyday Preferred Annual Earnings:
Here’s an annual breakdown for the Everyday Preferred Card:
- Groceries: 27,000 Membership Rewards
- Gas: 9,000 Membership Rewards
- Other: 13,500
- Total: 49,500 Membership Rewards
- Annual Fee: $95
Blue Business Plus Annual Earnings:
Here’s an annual breakdown for the Blue Business Plus:
- Groceries: 12,000 Membership Rewards
- Gas: 6,000 Membership Rewards
- Other: 18,000 Membership Rewards
- Total: 36,000 Membership Rewards
- No Annual Fee
The Verdict: Everyday Preferred vs Blue Business Plus
Given my assumptions above, the Everyday Preferred card will earn 13,500 more Membership Rewards points per year. With a valuation of 1.8 cents each, that’s an additional $243 worth of Membership Rewards points earned. However the Everyday Preferred card does require a $95 annual fee, thus leaving $148 of additional Membership Rewards points.
While the Everyday Preferred card comes out on top given my assumptions, that might not be the case for you. For example, if you spend heavily in the “other” category listed above, then the Blue Business Plus could eclipse the Everyday Preferred. I’d recommend analyzing your spend over the previous year to determine what might work best for you.
The Everyday Preferred and the Blue Business Plus are both great offerings from American Express. Determining which is best requires analyzing your household spending habits and plugging in the numbers. For me, I’m leaning towards the Everyday Preferred as my new everyday card.