Blue Cash Preferred Card from American Express Review

The Blue Cash Preferred® Card from American Express is known as one of the highest paying cash back cards available. It offers up to 6% cash back, a welcome bonus, and a 0% introductory APR. We’ll dig into the details in this review.

Blue Cash Preferred® Card from American Express

American Express is perhaps best known for its travel rewards–“Don’t leave home without it.” But with the Blue Cash Preferred® Card from American Express, it also offers a top notch cash rewards card. The card has a tiered reward system ranging from one to six percent. It also has a cash bonus for new card members and a 0% introductory APR offer.

I’ve carried this card for years. While I don’t use it as much (I moved near a Whole Foods and use the Amazon Prime Visa card for groceries), it’s an excellent option for those wanting to earn cash back.

Snapshot

• Limited Time Offer: $300 statement credit after you spend $3,000 on purchases with the card in the first 6 months.
• Earn Cash Back: 6% at U.S. supermarkets up to $6,000 per year in purchases (then 1%), and 6% Cash Back on select U.S. streaming subscriptions including  Spotify, Netflix, Hulu, HBO, ShowTime, Pandora, Apple Music, Amazon Music or Video (Does not include Prime membership).
• Earn 3% at U.S. gas stations and on transit including taxis/rideshare, parking, tolls, trains, buses and more.
• 1% on all other purchases. Terms and limitations apply.
• With the Blue Cash Preferred^® Card, you can start earning cashback. No rotating reward categories. No enrollment required.
• Cashback is received in the form of Reward Dollars that can be redeemed as a statement credit. Cashback is earned only on eligible purchases.
• Annual Fee: $0 introductory annual fee for one year; $95 thereafter
• 0% APR on purchases for 12 months
• Terms Apply

Cash Back Rewards Program

There are four components of the rewards program: (1) the $300 bonus; (2) 6% cash back;  (3) 3% cash back; and (4) 1% cash back.

1. $300: Spend just $3,000 on the card in the first 3 months and you’ll pocket a $300 cash bonus in the form of a statement credit.
2. 6% Cash Back: For rewards, you earn 6% cash back at U.S. supermarkets up to $6,000 per year in purchases (then 1%). You also earn 6% cash back on U.S. streaming subscriptions. This is one of the highest cash back rewards available from any card.
3. 3% Cash Back: You’ll earn 3% on transit (e.g., taxis/rideshare, parking, tolls, trains, buses and more) and at U.S gas stations.
4. 1% Cash Back: On all other purchases.

Now it’s not all good news when it comes to the Blue Cash Preferred® Card from American Express.  There is a $95 annual fee that is NOT waived for the first year. But when you take into account the welcome bonus and cash back rates in a variety of categories, big spenders will love this card long-term.

For example, if you just take advantage of the 6% cash back on $6,000 at U.S. Supermarkets, you’ll earn $360 a year. That more than makes up for the annual fee and doesn’t account for cash back earned in the other categories.

Reward Dollars

With the Blue Cash Preferred® Card from American Express, the cash back is paid in what Amex calls “reward Dollars.” Whenever I see rewards paid in anything but cold, hard cash, I start asking questions. Here, it turns out that the reward Dollars can be used as statement credits. You can’t get a check sent to you or a direct deposit into your checking account.

Generally, I don’t think that limitation matters much. Money is fungible, after all. But there are at least two potential limitations.

First, you may take advantage of the 0% offer on purchases (see below). If you do, you probably want to make the minimum payment until the 0% offer is about to expire. If you make a large purchase, you may want to receive your rewards in cash while making that minimum payment. You can’t do that with this card.

Second, you can’t use reward Dollars to satisfy your minimum payment. They get applied as a statement credit, but you must still make the minimum payment from your own funds. For many this may not be a problem. But for some it may cause you to look at other credit card offers.

0% APR Introductory Offers

The Blue Cash Preferred® Card from American Express also offers an introductory 0% APR. The 0% APR lasts for [p_time post_id=”34857″] on purchases. Note that the card at one point offered 0% on balance transfers. Like many cards, however, it removed this feature given the economic uncertainties brought about due to COVID-19.

Other Card Benefits

Car Rental Loss and Damage Insurance: When you use the card to reserve and pay for the entire eligible vehicle rental and decline collision damage waiver, you can be covered if the car is damaged or stolen. As always, be sure to read the fine print on this coverage.

Global Assist Hotline: You get 24/7 access to medical, legal, financial and other emergency assistance when you travel more than 100 miles from home.

Return Protection: If a seller won’t accept a return, you can return eligible purchases to American Express up to 90 days from the date of purchase. Coverage is up to $300 per item, $1,000 per calendar year per card account. Only purchases made in the U.S. or its territories are covered.

Entertainment Access: Get exclusive access to ticket presales and card member-only events.

Fraud Protection: You won’t be held responsible for fraudulent charges on the card.

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Blue Cash Preferred® Card from American Express Rating