/static/images/financebuzz.png)
/images/2018/01/23/navina-side-hustle-mid_MPfEDfV.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
When it comes to earning rewards with a cash back credit card, people often look for opportunities to earn rewards on routine expenses. If you’re in the same boat and looking to earn rewards on everyday expenses, the Blue Cash Preferred® Card from American Express might be the perfect choice for you.
In this review, we’ll find out how the card works and what unique benefits it offers to justify the annual fee.
#1 Cash Back at Supermarkets
/images/2019/05/10/amex-blue-cash-preferred-5-2019.jpg)
Current Offer
Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
Annual Fee
$95 (waived first year)
Rewards Rate
6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases
Benefits
- Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
- 6% cash back on U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services
- 3% cash back at U.S. gas stations and eligible transit
- Introductory APR for purchases and balance transfers
- Annual fee of $95 (waived first year). Terms apply.
Drawbacks
- Has foreign transaction fee
- Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
- 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases
- Intro purchase 0% APR offer: 0% for 12 months then 18.74% - 29.74% (variable)
- Intro balance transfer 0% APR offer: 0% for 12 months then 18.74% - 29.74% (variable)
- Terms apply
Who should get the Amex Blue Cash Preferred card?
The Blue Cash Preferred Card from American Express allows you to earn a significant amount of cashback rewards on routine purchases. With 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases, this card can help you earn rewards fast if these areas contribute a decent amount to your recurring monthly expenses. The Blue Cash Preferred is considered one of the best credit cards for groceries.
According to the Bureau of Labor Statistics, households spend an average of $4,363 at grocery stores. If you paid for all that food with your Blue Cash Preferred at U.S. supermarkets, you could earn a whopping $261.78 in cashback rewards — more than double the cost of the annual fee.
That being said, the card may not be right for you if you have a large family or high monthly food costs; you only receive 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services. If you regularly spend more than that limit, it may make sense to use this card in tandem with another Amex rewards card within the Amex Trifecta to maximize your rewards.
Card basics
| Card type | Cash back |
| Credit card issuer | American Express |
| Annual fee | $95 (waived first year) (terms apply) |
| Welcome bonus | Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months |
| Reward rate | 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases |
| Recommended credit score | Excellent, Good |
| Foreign transaction fee | 2.7% |
| Intro APR | 0% on purchases for 12 months, then 18.74% - 29.74% (variable) 0% on balance transfers for 12 months, then 18.74% - 29.74% (variable) |
Amex Blue Cash Preferred benefits and perks
The Amex Blue Cash Preferred credit card offers many valuable benefits that can help you when you travel or shop. Some of the top benefits include:
- Strong welcome offer: New cardholders can earn a $250 statement credit after spending $3,000 on purchases in the first 6 months of account opening.
- Rewards that add up fast: With the Amex Blue Cash Preferred credit card, you'll earn 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases.
- Intro APR offer: With this card, you'll have the opportunity to pay down large purchases and balance transfers over time. You'll have a 0% intro APR on purchases and balance transfers for 12 months after account opening, then an ongoing APR of 18.74% - 29.74% (variable).
- Car rental insurance: Cardholders receive secondary coverage on car rental loss and damage insurance. Just be sure to use your card to pay for your car rental and turn down the rental company’s insurance.
- Purchase protection: Nothing is worse than dropping and breaking your new $1,000 phone. But with the Blue Cash Preferred, you get purchase protection. That means you’re covered for up to 90 days after making a purchase for up to $1,000 per occurrence, up to $50,000 in a calendar year.
- Statement credits for the Disney bundle: Get $7 back each month when you spend at least $12.99 on an eligible subscription to the Disney Bundle - Disney+, Hulu, and ESPN+. Enrollment required.
Drawbacks to the Blue Cash Preferred from American Express
- Annual fee: The Amex Blue Cash Preferred card has an annual fee of $95 (waived first year). If you're looking for a no-fee card, this one is not your best option.
- Foreign transaction fee: While this card does offer valuable cashback rewards and other benefits, it has a foreign transaction fee. If you use this card to make purchases while traveling abroad, those fees can add up.
Maximizing your cash back with the Amex Blue Cash Preferred
Potential earnings in years one and two
Here's a look at how your cash back can add up with the Amex Blue Cash Preferred.
Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.
Year one earnings: $1,218 in the form of a statement credit
Year two earnings: $873 in the form of a statement credit
These values are based on the FinanceBuzz Credit Card Rewards Valuation Model which takes a look at points earned via spending, the welcome bonus, and the annual fee.
Best ways to earn
The Amex Blue Cash Preferred Card offers a higher rewards rate on routine purchases than you’d get with other credit cards. Here's a look at what you'll earn:
| Categories | Rewards rate |
| U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services | 6% |
| U.S. gas stations and eligible transit | 3% |
| All other eligible purchases | 1% |
With the Amex Blue Cash Preferred, you’ll earn 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases.
Maximizing your redemptions
When you use your card, you earn cash back in the form of Blue Cash Rewards Dollars. You can redeem these dollars for statement credits whenever your rewards balance reaches $25 or more. Keep in mind that you can’t use your Blue Cash Rewards Dollars to pay your minimum monthly payment; you can only use it as a statement credit after paying your minimum.
Amex Blue Cash Preferred FAQs
Is the Amex Blue Cash Preferred worth it?
If you are interested in a cashback rewards card for everyday purchases, the Amex Blue Cash Preferred is a fantastic option. It offers a generous 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases.
If much of your spending is outside the Amex Blue Cash Preferred bonus categories or you're looking for a card with lower fees, the Capital One Quicksilver Cash Rewards Credit Card may be a better value. Comparing the Blue Cash Preferred vs. Capital One Quicksilver Cash cards can help you decide which best fits your needs.
What credit score do you need for the Amex Blue Cash Preferred card?
You'll likely need a good to excellent credit score in order to get approved for the Amex Blue Cash Preferred credit card. According to FICO, a good credit score falls within the 670-739 range.
Is the Amex Blue Cash Preferred a charge card?
While certain American Express cards are charge cards — which means their balance has to be paid in full each month — the Blue Cash Preferred Card from American Express is a credit card. It has a revolving line of credit, and you’ll have a minimum monthly payment, so you can spread out the cost of purchases over the course of several months if needed.
How does the Amex Blue Cash Preferred fare against the Amex Blue Cash Everyday?
While the Blue Cash Preferred Card from American Express does have a $95 (waived first year) annual fee, it offers higher rewards than the Blue Cash Everyday® Card from American Express. With the Everyday Card, you'll earn up to 3% cash back rather than up to 6% cash back.
With the Blue Cash Everyday® Card from American Express — which has a $0 annual fee — you’ll earn 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%); and 1% cash back on other eligible purchases.
What U.S. supermarkets can I earn 6% cash back at with the Amex Blue Cash Preferred?
You can earn 6% cash back on the first $6,000 spent at select U.S. supermarkets. The Blue Cash Preferred Card from American Express eligible supermarket list includes:
|
|
Specialty shops, superstores (such as Amazon, Target, and Walmart), and warehouse clubs (such as Costco) are not eligible for the 6% cashback rate.
What U.S. streaming services are eligible for the 6% cashback rate with the Amex Blue Cash Preferred Card?
As of May 2020, the following U.S. streaming subscription services qualify for the 6% cashback rate:
|
|
What do I need to know about adding an authorized user to my Amex Blue Cash Preferred account?
The Blue Cash Preferred Card from American Express authorized user policy is fairly straightforward. You can add an additional card for anyone who is 13 years old and up, and you’ll earn the same cashback rate on their purchases that you do on your own transactions.
American Express allows you to set spending limits on authorized users. If you don’t set a limit, the authorized user can charge up to your total credit limit.
Other cards to consider
While the Blue Cash Preferred Card from American Express offers a lot of value, its annual fee may be prohibitive for some. If that’s the case for you, consider a different card such as the Chase Freedom Unlimited® or the Blue Cash Everyday® Card from American Express.
The Chase Freedom Unlimited has a $0 annual fee, and cardmembers earn 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and drugstore purchases, and 1.5% cash back on all other purchases.
The Amex Blue Cash Everyday card has a $0 annual fee, and cardmembers earn 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%); and 1% cash back on other eligible purchases.
#1 Cash Back at Supermarkets
Why We Like It
Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
See how these cards compare:
/images/2019/04/05/chase-freedom-unlimited-card.png)
Chase Freedom Unlimited®
- Earn an extra 1.5% cash back on all eligible purchases, on up to $20,000, in the first year
- Bonus rewards on travel, dining, and drugstores
- No annual fee
- Intro APR on purchases and balance transfers
/images/2022/07/15/american-express-blue-cash-everyday.png)
Blue Cash Everyday® Card from American Express
- Earn a $200 statement credit after spending $2,000 in purchases in the first 6 months
- Introductory APR offer for purchases and balance transfers
- 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%)
- Annual fee of $0. Terms apply.
- See rates and fees
/authors/kat-tretina.png)