Blue Cash Preferred Card from American Express Review

The is known as one of the highest paying cash back cards available. It offers up to 6% cash back and a 0% introductory APR on purchases and balance transfers for 12 months.

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 cards. 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.

Learn more about this and other cash back credit cards and apply online at CardRatings.com.

Snapshot

  • Welcome Offer: Earn $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • Earn Cash Back: 6% U.S. supermarkets up to $6,000 per year in purchases (then 1%), 3% U.S. gas stations, and 1% other purchases. Terms and limitations apply.
  • Earn 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% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
  • 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.
  • 0% intro APR on purchases and balance transfers for 12 months, then a variable rate based on your creditworthiness and other factors.
  • Annual Fee: $95
  • Terms Apply

Cash Back Rewards Program

There are four components of the rewards program: (1) the $250 bonus; (2) 6% cash back;  (3) 3% cash back; and (4) 1% cash back.

  1. $250: Spend just $1,000 on the card in the first 3 months and you’ll pocket a $250 cash bonus in the form of a statement credit.
  2. 6% Cash Back: For rewards, you earn 6% U.S. supermarkets up to $6,000 per year in purchases (then 1%). This is one of the highest cash back rewards available from any card.
  3. 3% Cash Back: You’ll earn 3% 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. This means the initial $250 statement credit bonus is cut by the annual fee. But when you take into account the high % cash back savings in a variety of categories, big spenders will love this card long-term.

For example, I used this card exclusively at the pump and at the grocery store.  I am the father in a family of four (only three eating solid food at the moment) and our grocery bill is a solid $450 every month.  My wife and I work from home, and with little children rarely eat out (once or twice a month if that) so nearly all of our meals occur within these four walls.  Spending $5,500 a year on groceries, we save $330 a year just on this one expenditure line.

Had we been using a very good 2% cash back credit card, that savings would only be $110, meaning were $220 to the positive.  Tack on the savings from 3% gas purchases, the initial $250 bonus and the perks that American Express can provide; the Blue Cash Preferred® Card from American Express is an easy addition to our wallets.

Frequently Asked Questions

Is the Amex Blue Cash Preferred worth it?

With a $95 annual fee, the answer depends on how much you use the card. If you max out the 6% cash back on groceries each year, the card more than pays for itself. Six percent back on $6,000 in groceries will earn you $360. Add to that any additional cash back, and the card is easily worth the annual fee.

Is the Amex Blue Cash Preferred a charge card?

No. Blue cash preferred is a credit card. You can pay it off in full each month, which is always the best approach. But if you need to pay it off over time, you can.

How does it compare to the Blue Cash Everyday card?

The Blue Cash Everyday card by American Express is a no annual fee version of the Blue Cash Preferred card. In exchange for no annual fee, your rewards rates are lower. For example, rather than 6%, you’ll earn 3% cash back on up to $6,000 in groceries each year with the Blue Cash Everyday card.

Does the Blue Cash Preferred charge a foreign transaction fee?

Yes–2.7% of each transaction after conversion to US dollars.

Does the card earn Amex Membership Rewards?

No. Amex Blue Cash Preferred earns Reward Dollars that can be used for statement credit, merchandise, or gift cards. For those who want to earn Membership Rewards, consider the Everyday and Everyday Preferred cards.

Learn more about this and other cash back credit cards and apply online at CardRatings.com.