My Recent Best Amex Card Decision – Closing This “Untouchable” One
Amex put many cardholders on their heels recently with their Platinum annual fee increase and cashout devaluation. I don’t think the changes are that big a deal. Regardless, there’s no denying Amex has changed the calculus for many on the products they hold. What have I done? I committed what many may consider Amex Membership Rewards Heresy – I closed my Blue Business Plus card. In the past, I considered this card untouchable, like many still do. Of course it would always take up one of my four or five Amex credit card slots! How could it not? For the reasons below, the decision to close the Blue Business Plus was easy for me. Indeed, I consider it the best Amex card decision I’ve made in recent memory. Should you consider such a move? Read on!
Blue Business Plus Now Provides Me Minimal Benefits
Many who talk and write about points and miles go on ad nauseam about the two primary positives of the Blue Business Plus:
- The card earns 2x Membership Rewards on the first $50k of annual spend!
- Even better, the card has no annual fee! Hence, you can keep your Membership Rewards permanently active at no cost!
For my preferred cashout redemption method, the Blue Business Plus is essentially a 2.5% cash back card on the first $50k of annual spend. I’m cool with that – until 1 September. On that date, Schwab Platinum cardholders will see the cashout rate shrink from 1.25 cents per point to 1.1 cents per point. For people like me who prefer cashout, it becomes a 2.2% cash back card. That’s okay, but nothing special.
A no annual fee method for keeping Membership Rewards points alive is huge for many. Meanwhile, it’s useless to me. Why? I plan to hold onto my Schwab Platinum indefinitely, anyway, for many reasons. Also, I love the Gold card’s earning structure and benefits. The wife and I hold multiple, and will hoard more of them next year thanks to all the other Platinums we’ll downgrade.
As Janet Jackson sang long ago, “What have you done for me lately?” Nothing, Blue Business Plus.
Blue Business Plus Is Easily Replaceable
But what about 2.2% cash back? After all, that’s only 0.3% less cash back than before, and 2.2% is still solid! True, but cardholders can do pretty much the same or better with other cards. The Discover Miles card is effectively 3% cash back on all spend during the first cardmember year, and this offer can be obtained repeatedly. The Citi Double Cash earns 2% on all spend with no caps and can be transferred 1:1 to ThankYou points. Many other similar cash back cards exist.
I don’t use an everyday spend card, and I only rarely made purchases with the Blue Business Plus. I’ll accept future spending on the Double Cash where I previously used the Blue Business Plus (if I have no other more lucrative options). So, I’ll earn 2% cash back with the Double Cash versus 2.2% Cash Back with the Blue Business Plus. But why am I okay with that “subpar” 2% rate? Here we go.
By comparison, the Blue Business Plus earns 0.2% more than the Double Cash per dollar, but only on the first $50k spend annually. If a cardholder prefers cashout at a 1.1 cpp rate and maxes out the Blue Business Plus, that amounts to only $100 more than the same spend on the Double Cash.
Again, that’s only if a Blue Business Plus cardholder spends a whole $50k on the card annually. Looking back on my Blue Business Plus behavior, I never came close to spending $50k on this card in any year. Why not? Because I could earn so much better on a variety of other cards at high scale, Amex and otherwise. I never got around to needing the Blue Business Plus for any significant spend. Again, at most, I’d be giving up $100, and most likely less, by closing the Blue Business Plus.
Note: Since I also have the Rewards+, I theoretically can take advantage of its 10% points back feature on my Double Cash spend. Yes, this can effectively make the Double Cash a 2.2% cash back card on the first 100k of points redemptions annually. However, since I’m already redeeming at least 100k ThankYou points annually due to my Premier spend, I can’t necessarily attribute that extra 0.2% to the Double Cash spend. However, based on others’ spend behavior, they may be able to consider their Double Cash a 2.2% cash back card.
Blue Business Plus Is Now Unnecessary Clutter
Up to this point, I’ve talked about how the Blue Business Plus is decreasingly useful for my situation. That alone doesn’t mean I should close the card. After all, I could still obtain up to $100 more, as I just described. Enter Amex’s five credit card limit. The Blue Business Plus is now blocking more rewards beyond that extra $100. Letting go of the Blue Business Plus effectively allows me to pursue an additional Amex credit card annually. Instead of pinning myself into a self-made four credit card limit with a side of Blue Business Plus, I’m now truly free to have five. For the cost of less than $100, I’ve achieved substantially more Amex flexibility. So then, how can I take advantage?
Superior Alternatives
I’ve already done so! By closing my Blue Business Plus and incorporating my other Amex credit cards and plans, I was able to open the Delta SkyMiles Gold Business Amex. Here’s what’s coming my way:
- Earn 75k Delta SkyMiles with $4k spend within the first three months of card membership.
- Obtain a $200 statement credit after my first Delta purchase within the first three months of card membership.
- No annual fee the first cardmember year.
- Referral bonus of 30k Membership Rewards points for my wife.
For us, this translates to 75k miles, $525 cash back, and a $50 Delta gift card for $4k spend. How does this compare to instead holding onto the Blue Business Plus for an extra $100? The two are in different universes.
But wait, didn’t I benefit from the Amex Offers on the Blue Business Plus in the past? Yes, but not enough to make up for how much better I’m doing by dropping it now and picking up the Delta Gold Business card. Plus some of those offers weren’t exclusive to the Blue Business Plus, anyway.
Of course, picking the Delta Gold Business card worked best for us. Depending on your situation and timing, there may be a different referral bonus and/or card which may provide you even more lucrative rewards! Since there are many Amex credit cards we’ve yet to hold, we’ll be replacing this card with another in about a year. Those future card welcome offers will similarly provide much better rewards than $100. Rinse and repeat.
My Recent Best Amex Card Decision Isn’t For Everyone
Of course, many obtain great value out of the Blue Business Plus and may have no reason to close the card. Also, others may have previously held the majority of Amex credit cards. Those individuals will probably have less need for as many slots as possible. Of course, many playing a simpler game may like the no annual fee of the Blue Business Plus. Similarly, some individuals have no interest in holding the higher earning cards with accompanying annual fees. And, of course, the Blue Business Plus can be a great new card option depending on the current welcome offer. The list goes on.
My Recent Best Amex Card Decision – Conclusion
When I first came to this conclusion, I caught myself. How could it make sense to get rid of this “untouchable” card? Upon further review, I came to the same conclusion that closing the Blue Business Plus was my optimal play. I understand many obtain great value out of the card for their earning and redemption habits, but the card isn’t a necessity for every individual. With all banks, I need to constantly reevaluate based on hobby changes and consistently challenge my preconceived notions. Upon reflection, I probably should’ve come to this conclusion earlier. Regardless, it’s the best Amex card decision I’ve made recently.
What does your future look like with the Blue Business Plus?
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I think you’re missing out on the most important point in the paragraph titled “Blue Business Plus Is Easily Replaceable” !
If you have a city rewards plus card your effectively will be earning 2.2% cash back everywhere up to 50 $50000 Redeemed every year
Justmeha,
In my situation, I can’t necessarily consider the Double Cash a 2.2% cash back card with my Rewards+, because I already redeem at least 100k in ThankYou points annually due to my Premier spend. However, others may consider it 2.2% cash back depending on their own spend and redemption profiles. I’ve added this to the article for additional clarity.
Benjy, you touch upon a subtle issue: how much does any given card “move the needle?”
Putting welcome bonuses to the side, one would focus on only ongoing spending. Let’s say a person actually has every card available — not possible but just pretend — and let’s say that’s 50 cards. For every purchase, one uses the optimal card of the 50 cards. Doing so, one earns X points worth $Y.
Now, let’s say a person imposed upon oneself a 10-card limit. What cards would those be? And, what percent of $Y does one leave on the table? Now, repeat with an 8-card limit . . . then a 7-card limit . . . etc.
The trade-off is simplicity vs. value. A while back, one of your team’s articles noted that simplicity and marital bliss are directly correlated. Ha.
I went through this exercise and made it all the way down to three AMEX cards for all purposes plus a Visa (because one must have a non-AMEX backup). Of the three AMEX cards, one is for day-to-day stuff and the other two are for travel and entertainment. In doing so, I only left about 5 percent of my $Y on the table. This was my solution for my objectives. One of my objectives was that my wive only has to use one AMEX card for everything (with a Visa backup). (And, then, she put the knives away.) Someone else might end up with two or five or however many cards from whichever issuers for one’s own circumstances.
I’d recommend everyone try it.
Well thought-out post. But predicated on setting SUBs aside, likely we agree, that is a lot to leave out, and pass over when the offers hit. I don’t have quality data, but I suspect half of our lifetime earnings rise up from SUBs as well as cyclical bonuses. If it wasn’t for having a fair stack of cards during Covid, we would have missed out on an easy 5 years worth of earnings that we gained in a single year. My solution for P2 is to stock her with 3 cards and chill if she misses now and then; if I work it with as much awareness as I can muster on the P1 side, we’re not missing much.
DjG,
A pretty sound strategy for P2!
Reno Joe,
Thanks for the thoughtful comment and exercise. I agree that depending on the situation and exact numbers, what one is giving up in “$Y” may be worth it for the simplicity the individual gains.
There is a real possibility that closing the blue business plus card will result in receiving the dreaded pop up.
harv,
For what it’s worth, I was able to get a new Amex card and welcome offer (no pop-up) after closing the Blue Business Plus. I’m not concerned.
Since you can get the card again (without bonus), you are not forgoing much. The only potential pitfall is if you have 5 credit cards (held less than 1 yr or accepted retention offers) and want to close all of your membership rewards cards.
PS Does the pop-up preclude you from getting the card without the bonus?
@oliver You can get the card without bonus if you get the popup.
Oliver,
You read my mind. While it’s not something I’ll do any time soon, I do like that I can get the Blue Business Plus again. The pitfall you mention is valid, but I can’t imagine being in that situation myself. As Tom mentioned, the pop-up doesn’t prevent you from getting the card without a welcome offer. And your P2 can still obtain a referral bonus!
I guess I am about the opposite of you. I never hold a high AF card like Amex gold or plat without a great retention offer. There are always other flavors of plat, NLL offers, upgrade offers, etc. I don’t spend that on much on gold, as I’m almost always working towards a SUB, and I don’t MS. I also haven’t ever had any desire to cash out via Schwab, bc MR are best used transferring to airline partners for premium cabin international flights.
So I keep my bb+ but rarely spend on it, for above reason (usually have MSR), but I keep it so I can cancel my high AF MR cards as needed. I suppose I could reapply if I anticipate being without an MR card to free up a slot, but there is some risk in that.
WR2,
Indeed, we can both be correct for our own situations. While your MR “best” use of airline partners for premium cabin international flights is optimal for your situation, that couldn’t be less valuable in mine. Likewise, my preferred Schwab cashout isn’t on the redemption radar for many others. Bravo for having a strategy that works for you!