Blue Cash Preferred® Card from American Express: Review
Is the Blue Cash Preferred Card worth it?
The Blue Cash Preferred® Card from American Express is worth it for people who spend a lot on groceries and streaming services, as its cash-back rate in those categories is insanely good, earning 6% back at U.S. supermarkets on up to $6,000 spent per year (then 1%) and 6% back on select U.S. streaming services.
While most cash-back cards don’t have an annual fee, the Blue Cash Preferred does ($95; $0 the first year), meaning it has a yearly cost to make up for. However, the lucrative welcome bonus and useful bonus categories make it so even a single person with no dependents can earn enough in rewards to cover the annual fee and then some.
▶︎ See: Best cash back credit cards with no annual fee
Amex Blue Cash Preferred: Highlights
- Earns 6% back at U.S. supermarkets on up to $6,000 spent per year (then 1%), 6% back on select U.S. streaming services, 3% back at U.S. gas stations and on transit, and 1% back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- Welcome offer of $250 after you spend at least $3,000 on eligible purchases within six months of opening your account.
- $0 annual fee the first year, then $95/year thereafter
- 0% introductory APR offer on purchases and balance transfers for 12 months after account opening, then 19.24% to 29.99% variable (see rates and fees)
- Various partner benefits, shopping benefits, and travel perks
Who is the Amex Blue Cash Preferred Card best for?
The Blue Cash Preferred card is best for individuals who want to maximize their cash back on everyday purchases and don’t mind paying an annual fee to do so. This card would be ideal for families who spend a significant amount at traditional U.S. supermarkets.
For example, if you spend $500 per month on groceries (only about $115 per week), that adds up to $360 in cash back over the year. With today’s grocery prices, it’s easy to spend $115 a week without even thinking about it (unfortunately), so this level of cash-back could be seriously beneficial.
Blue Cash Preferred® Card: Rewards
Earning rewards
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6% cash back at U.S. supermarkets. Use your card at U.S. supermarkets to earn 6% cash back on each purchase. Note that you can only earn cash back on your first $6,000 in grocery expenses. Additionally, you only get cash back for purchases at traditional grocery stores, not at warehouse clubs, online grocery retailers and superstores.
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6% on select U.S. streaming subscriptions. American Express offers 6% cash back on certain streaming subscriptions. To qualify for cash back on this type of purchase, you must sign up with an eligible provider. You may not be eligible for cash back on multiple subscriptions sold as a bundle
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3% at U.S. gas stations. Use your card at standalone gas stations in the U.S. to earn 3% cash back on your gasoline purchases. This offer isn’t valid at superstores and warehouse clubs.
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3% on transit. American Express offers 3% cash back on transit expenses, including taxi fare, parking, bus fare, tolls, train fare and transportation booked via ride-hailing apps.
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1% on other eligible purchases. Blue Cash Preferred gives you 1% cash back on all other eligible purchases.
Redeeming rewards
When you use your Blue Cash Preferred Card, you earn Blue Cash Reward Dollars, which are applied to your account as statement credits or at Amazon.com checkout. Once you redeem your rewards, you can use them to offset your regular expenses or defray the cost of planned purchases.
For example, if you plan to make a $1,000 purchase and you have $500 in rewards dollars banked, you can use your statement credit like a 50% discount. Instead of paying $1,000 out of pocket, you’ll pay just $500 for your purchase.
Reward potential
Here’s an example to show you how much you might earn with Blue Cash Preferred. Assume you spend $500 per month on groceries, $20 on streaming subscriptions, $200 on gasoline, $60 on tolls and $400 on all other purchases.
You’d earn the following rewards:
- Groceries: $360 ($500 x 12 x 6%)
- Streaming: $14.40 ($20 x 12 x 6%)
- Gasoline: $72 ($200 x 12 x 3%)
- Transit: $21.60 ($60 x 12 x 3%)
- Other expenses: $48 ($400 x 12 x 1%)
This adds up to $516 in cash back for the year.
Maximizing your rewards
Tips to maximize your earnings with the Amex Blue Cash Preferred card:
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Shop at traditional U.S. supermarkets. You won’t earn cash back on purchases made at warehouse clubs, superstores or online grocery retailers.
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Add an authorized user to your card. American Express doesn’t charge a fee for authorized users, so you can earn rewards on additional cards without increasing your expenses.
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Use your Blue Cash Preferred credit card consistently. The more you use it, the more opportunities you have to earn rewards.
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Pair your Blue Cash Preferred card with other credit cards to maximize your earnings. For example, if you hit the grocery cap on your Amex card, you can use a different credit card to continue earning rewards on your grocery purchases.
▶︎ See: Best credit cards for rewards on groceries
Welcome offer
With your Blue Cash Preferred Card, you can earn a $250 statement credit after you spend at least $3,000 on eligible purchases within six months of opening your account.
It usually takes eight to 12 weeks to receive your statement credit once you reach the spending threshold. Additionally, your account must be in good standing if you want to earn the welcome bonus.
Blue Cash Preferred®: Benefits
Travel benefits
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Global Assist® hotline*. American Express offers emergency assistance whenever you’re traveling more than 100 miles from home. If you have an emergency while you’re visiting relatives a few states away, you can call the Global Assist hotline for legal referrals, medical referrals, coordination services, emergency cash wires and other types of assistance.
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Car rental loss and damage insurance*. If you use Blue Cash Preferred to pay for your entire rental, you may be eligible for car rental loss and damage insurance. To qualify for this type of insurance, you must decline the collision damage waiver offered by the rental company. Amex car rental loss and damage insurance protects you if you get into an accident with a covered vehicle or your covered vehicle is stolen.
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Return protection. If you use Blue Cash Preferred to purchase something, you may be eligible for return protection if the retailer refuses to take it back within 90 days of purchase. This credit card benefit is limited to $300 per item and $1,000 per calendar year. Return protection only applies to purchases made in the United States or one of its territories.
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Fraud protection*. Amex uses intelligent fraud protection systems to monitor your Blue Cash Preferred account and let you know if there’s any suspicious activity. If someone fraudulently uses your credit card, you’re not liable for the unauthorized purchases.
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Pay It Plan It®. This feature allows you to split large purchases into equal monthly payments. Instead of charging interest, Amex charges you a fixed monthly fee on these purchases, making it easier to budget your money.
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Amex Offers. American Express partners with other companies to offer member-only deals on certain products and services. For example, you may see an offer for $5 cash back on a purchase of $30 or more at a restaurant chain. To take advantage of offers, you must add them to your credit card.
*Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
Other perks
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Disney Bundle credit. When you use Blue Cash Preferred to pay for the Disney Bundle, you’ll get back up to $7 per month. This gives you the potential to earn $84 per year. To qualify, you must spend at least $9.99 per month on your Disney streaming subscription. Enrollment required.
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Authentication. When you shop online, American Express uses SafeKey to verify your identity.
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Contactless payments. With contactless payments, you don’t have to swipe your card or use the chip reader, reducing the risk of fraud.
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Amex alerts. If one of its monitoring tools notices any irregularities, American Express will send an alert to your mobile device.
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Instant use. After getting approved for the Blue Cash Preferred Card, you’ll receive your card info so you can use your card immediately.
Blue Cash Preferred Card: The fine print
Interest rates
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Purchase intro APR: 0% for 12 months from account opening
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Regular APR: 19.24% to 29.99% variable based on your creditworthiness
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Balance transfer intro APR: 0% on balance transfers made within the first 12 months
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Cash advance APR: 29.99%
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Fees
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Annual fee: $0 the first year, then $95
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Balance transfer fee: The greater of $5 or 3% of the transfer amount
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Foreign transaction fees: 2.7% foreign transaction fee after conversion to U.S. dollars
Credit limit
The credit limit on your Blue Cash Preferred® Card is set based on your income and credit history. If your score falls into the good range, you may start out with a limit of $1,000. If you have an excellent credit score and a long history of responsible credit card usage, you may qualify for a much higher limit.
Amex Blue Cash Preferred: Drawbacks
There’s an annual fee
At $95 ($0 the first year), the Blue Cash Preferred’s annual fee can’t be ignored. While it can be easy to justify this fee if you’re able to maximize the cash-back categories, if you don’t spend heavily in these categories, a no-fee alternative may be more suitable.
Cap on supermarket spending
The 6% back at U.S. supermarkets is one of the defining characteristics of the Blue Cash Preferred Card, offering tremendous potential for earning cash-back. However, there’s a caveat. This 6% rate only applies to the first $6,000 spent at U.S. supermarkets each year, then the reward rate drops to 1%. You may be thinking “But $6,000 is a lot, I’ll never meet that cap.” If you do the math (we’ll do it for you), $6,000 per year only equals a little bit over $115 per week. Most families spend far more than that, so consider your spending habits before applying for this card.
If you spend more than $6,000 at U.S. supermarkets each year and don’t want to deal with the subpar 1% rate after you meet the cap, you can always supplement with an additional card to cover the rest of the year. For example, the Blue Cash Everyday® Card from American Express earns 3% back at U.S. supermarkets on up to $6,000 per year (then 1%; see rates and fees) and the Capital One SavorOne Cash Rewards Credit Card earns 3% back at grocery stores (excluding superstores like Walmart® and Target®).
Not great for international travel
If you’re planning on traveling internationally, the Blue Cash Preferred Card is probably not the best card to take with you, as it has a 2.7% foreign transaction fee. That can add up quickly— if you spend $100, you’ll incur $2.70 in fees, meaning you’re essentially paying $102.70. Not ideal.
American Express is also not as widely accepted overseas as Visa or Mastercard, so even if you can get past the foreign transaction fee, there’s still a chance you wouldn’t be able to use it to pay for your purchases anyway.
▶︎ See: Best credit cards for international travel or best cards with no foreign transaction fees
How the Blue Cash Preferred® Card from American Express compares
| |
Blue Cash Preferred |
Blue Cash Everyday |
| Reward rate at U.S. supermarkets |
6% back on up to $6,000/year, then 1% |
3% back on up to $6,000 per year, then 1% |
| Rewards earned on $100/week at the supermarket |
$6/week ($312/year) |
$3/week ($156/year) |
| Annual fee |
$95 ($0 the first year) |
$0 (see rates and fees) |
| Rewards minus annual fee (after the first year) |
$217/year |
$156/year |
- Blue Cash Preferred also earns 6% back on select U.S. streaming services, 3% back at U.S. gas stations, 3% back on transit purchases, and 1% back on all other eligible purchases.
- Blue Cash Everyday also earns 3% back on up to $6,000 spent at U.S. gas stations each year (then 1%), 3% back on up to $6,000 spent on U.S. online retail purchases each year (then 1%), and 1% back on all other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
It’s easy for the Blue Cash Preferred to win against the Blue Cash Everyday, even after subtracting the annual fee from the value of rewards earned.
▶︎ Read more: Blue Cash Everyday vs Blue Cash Preferred and Blue Cash Everyday review
| |
Blue Cash Preferred |
Amex Gold |
| Reward rate at U.S. supermarkets |
6% back on up to $6,000/year, then 1% |
4X Membership Rewards points |
| Rewards earned on $100/week at the supermarket |
$6/week ($312/year) |
400 points/week (20,800 points/year): Worth approx. $124/year when redeemed for statement credits |
| Annual fee |
$95 ($0 the first year) |
$250 (see rates and fees) |
| Rewards value minus annual fee (after the first year) |
$217/year |
-$126/year |
- Blue Cash Preferred also earns 6% back on select streaming services, 3% back at U.S. gas stations, 3% back on transit purchases, and 1% back on all other eligible purchases.
- Amex Gold also earns 4X points on eligible purchases at restaurants, 3X points on air travel booked directly with an airline or with American Express Travel, and 1X points on all other eligible purchases.
The Amex Gold card is primarily a travel card, as the most redemption value comes through transferring to Amex travel partners. Redeeming for cash-back (via statement credits) is worth only about 0.6 cents per point. If you’re looking for a cash-back card, the Blue Cash Preferred wins by a landslide.
▶︎ Read more: Amex Gold card review
Should you get the Blue Cash Preferred® Card from American Express?
You should get the Blue Cash Preferred card if you have high grocery and transit expenses. For example, this credit card is ideal for commuters who pay daily tolls or take public transportation to and from work several days per week. This card is also great for families, as it rewards you for ordinary purchases.
If you prefer to earn rewards on travel or dining, some cards offer better rewards in those categories.
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For rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.
For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.
For rates and fees of the American Express® Gold Card, please visit this page.
