Blue Cash Preferred® Card From American Express Review 2024

The Amex Blue Cash Preferred is currently offering new cardholders a welcome bonus of a $250 statement credit after spending $3,000 in purchases within the first 6 months.

The high cash-back rate at U.S. supermarkets for the Blue Cash Preferred® Card from American Express might turn heads, but those heads might turn away after reading all the fine print. The increased cash-back category is capped at $6,000 spent annually and does not include superstores like Walmart or Target or wholesale clubs like Costco. For those who hit the cap, additional purchases will only earn 1%.

The card earns 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash 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, plus a decent 0% APR offer on purchases: Get a 0% introductory APR for 12 months on purchases and balance transfers requested within the first 60 days of account opening, followed by a variable APR of 19.24%-29.99% variable. A balance transfer fee of $5 or 3%, whichever is greater, applies.

Travel benefits for the card include secondary car rental loss and damage insurance¹ and a global assist hotline² for those in tricky situations over 100 miles from home. The card does have a foreign transaction fee which is something to be aware of if you are looking at this as a primary travel card. Also, American Express is still not as widely accepted internationally as other issuers.

One potential drawback of the Blue Cash Preferred is that rewards are redeemed as statement credits and do not apply toward minimum payments. This is standard for most Amex cards that do not offer Membership Rewards Points, Amex’s transferable point system.

• 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash 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
• $0 intro annual fee for the first year, then $95
• 0% introductory APR for 12 months on purchases and balance transfers requested within the first 60 days of account opening, followed by a variable APR of 19.24%-29.99% variable. A balance transfer fee of $5 or 3%, whichever is greater, applies

The Blue Cash Preferred® Card from American Express could be a great choice for anyone who spends a significant amount of money in the card’s bonus categories: groceries, streaming, gas and transit. It will be the very best fit for those who spend close to, but not much more than, $6,000 on groceries per year as this will allow them to maximize the 6% cash-back rate without exceeding the bonus cap.

The Amex Blue Cash Preferred has made the list of our top cards in multiple categories, including:

• Best Credit Cards
• Best American Express Credit Cards
• Best Credit Cards For Groceries
• Best 5% Cash Back Cards (Or More)

Earning Rewards

Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash 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.

There’s also a first-year welcome bonus: Earn a ​​$250 statement credit after spending $3,000 in purchases within the first 6 months.

Redeeming Rewards

Cash back is earned as Reward Dollars, which may be redeemed for a statement credit or at Amazon.com checkout. Rewards cannot be applied toward minimum payments.

Rewards Potential

To determine the rewards potential of the Blue Cash Preferred® Card from American Express, we look at the bonus categories and calculate what an average household might spend in those areas. Forbes Advisor uses data from various government agencies to determine baseline income and spending averages across various categories. The 70th percentile of wage earners brings in $118,4380 annually and we base spending on that number.

Forbes Advisor estimates that a household in this income category spends $7,243 on groceries per year. The first $6,000 of that spending would earn 6% and the other $1,243 would earn 1% for a total earnings of $372.43. Streaming service spending of $679 adds another $40.74 in annual cash back. The $3,562 on transportation a household spends would net $106.86 in cash back, and $27,853 on other purchases that could reasonably be charged to a credit card would earn cash back of $278.53. This means the card would earn a total of $798.56 per year, in addition to the first-year welcome bonus.

The Blue Cash Preferred Card comes with a 0% introductory APR for 12 months on purchases and balance transfers requested within the first 60 days of account opening, followed by a variable APR of 19.24%-29.99% variable. A balance transfer fee of $5 or 3%, whichever is greater, applies.

American Express Blue Cash Preferred Travel Benefits.

• Global Assist Hotline². Help coordinating and finding resources during a travel emergency.

American Express Blue Cash Preferred Car Rental Benefits

• Car rental loss and damage insurance¹. Rental cars are covered with secondary coverage when the card is used to pay for the rental and the rental company’s insurance is declined

American Express Blue Cash Preferred Shopping Benefits

• Return protection³. Return coverage up to $300 per item and $1,000 per year on eligible purchases made in the U.S.
• Amex Offers. Save money with targeted Amex Offers available to cardholders using an enrolled Amex credit card.
• Fraud protection. $0 cardholder liability for unauthorized transactions.
• Pay It Plan It®. A payment plan option for purchases in categories under or over $100.

Other American Express Blue Cash Preferred Benefits

• Up to $84 credit on The Disney Bundle. Spend $9.99 or more on the Amex Blue Cash Preferred card each month on a subscription to The Disney Bundle and get a $7 monthly statement credit.
• Up to $120 Equinox+ credit. Use your Blue Cash Preferred® Card from American Express to pay for an auto-renewing subscription to Equinox+ at equinoxplus.com and receive $10 in monthly statement credits. Enrollment required.

Interest Rates

• Regular APR: 19.24%-29.99% Variable
• Purchase intro APR: 0% on purchases for 12 months
• Balance transfer intro APR: 0% on balance transfers for 12 months

Fees

• Annual fee: $0 intro annual fee for the first year, then $95
• Balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater.
• Foreign purchase transaction fee: 2.7% of each transaction after conversion to US dollars. (Terms apply. see rates & fees)

The most appealing and rewarding feature of the Amex Blue Cash Preferred is the 6% cash back on up to $6,000 per year in grocery store purchases. The average household spends at least $6,000 in groceries per year, according to government data, but to be eligible for the 6% cash back, you must be careful to shop in traditional grocery stores.

Cash-back bonus categories are also applicable to authorized users on the card. Amex Blue Cash Preferred authorized user cards are free. So by adding family members to the account, cash back can be earned on their purchases too.

Adding your card to your mobile wallet means you will always have the card at hand to use. Similarly, you can enter your Amex Blue Cash Preferred Card as your default payment method on your streaming accounts, transit app, automatic toll reload and parking app to ensure you’ll earn your rewards with minimal effort.

Blue Cash Preferred® Card from American Express vs. Blue Cash Everyday® Card from American Express

Those who frequently spend in the bonus categories offered on the Blue Cash Preferred® Card from American Express but can’t stomach an annual fee may want to consider the Preferred’s no-annual-fee sibling card, the Blue Cash Everyday® Card from American Express (terms apply, see rates & fees.). With this card you’ll earn 3% cash back at U.S. supermarkets, U.S. gas stations, and online retail purchases in the U.S. (on up to $6,000 in each category per year in purchases, then 1%), and 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits or at Amazon.com checkout.

Those who spend a lot on groceries, streaming and non-gas transit are likely better off sticking with the Blue Cash Preferred® Card from American Express despite its annual fee. However, those who do a lot of their shopping online may come out ahead by choosing the Blue Cash Everyday® Card from American Express.

Read more:  Blue Cash Preferred Vs. Blue Cash Everyday

Blue Cash Preferred® Card from American Express vs. American Express® Gold Card

The American Express® Gold Card (terms apply, see rates & fees) is the mid-range option for those who wish to earn American Express Membership Rewards points. Some cards offer bonuses for dining and others for U.S supermarket spending, but the American Express Gold Card is an industry leader by offering 4 Membership Rewards® points per dollar at restaurants, plus takeout and delivery in the U.S., 4 Membership Rewards® points per dollar at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1 point per dollar), 3 Membership Rewards® points per dollar on flights booked directly with airlines or through American Express travel and 1 point per dollar on other eligible purchases. Plus, unlike the Blue Cash Preferred, the Amex Gold card’s Membership Rewards can be transferred to a number of Amex’s travel transfer partners at a potential greater value than a penny per point.

The downside? An annual fee of $250, which is not waived the first year. On paper, the fee can be justified by the rewards the card offers: You’ll earn up to $120 in dining credits and up to $120 in Uber Cash. However, it is not so simple. The $120 dining credit has to be redeemed in $10 monthly increments, is only good at a small selection of restaurants and delivery services and requires enrollment. And the Uber Cash also has to be used at the rate of $10 per month and is only valid for rides and Uber Eats orders in the U.S. You must also link your eligible card to your Uber account.

But, for someone whose spending aligns more closely with the bonus rewards on the Amex Gold than the Blue Cash Preferred and who prefers Membership Rewards over cash, this could be a better choice.

Compare: Blue Cash Preferred® Card from American Express vs. American Express® Gold Card

Blue Cash Preferred® Card from American Express vs. Citi Double Cash® Card

Unlike the tiered rewards structure of the Blue Cash Preferred, the Citi Double Cash® Card is a flat-rate rewards card that earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. It also comes with a balance transfer offer of 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 19.24% - 29.24%, based on creditworthiness. An intro balance transfer fee of either $5 or 3%, whichever is greater, applies to transfers completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5).

These two cards might work well paired together for those who find their spending priorities align well with the higher-earning categories of the Blue Cash Preferred® Card from American Express but don’t want to lose out on higher cash-back opportunities all-around.

Read more: Best Cash-Back Credit Cards

The Blue Cash Preferred® Card from American Express has an above-average earning rate but one that has to be weighed against its $0 intro annual fee for the first year, then $95 annual fee. For households with spending centered on groceries and getting around, the Blue Cash Preferred could be a great fit, especially for those who can take advantage of the introductory 0% APR offer on purchases.

But if you tend to spend more in other areas, like travel or dining, look for another card that offers higher rewards in those areas.

Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:

• Annual fees
• Welcome bonus offers
• Ongoing earning rates
• Value of individual points or miles
• Included travel or merchant credits
• Additional cardholder benefits

Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.

Read more: How Forbes Advisor Rates Credit Cards

To view rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.
To view rates and fees for American Express® Gold Card please visit this page.
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.

¹Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
²Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. If approved and coordinated by Premium Global Assist Hotline, emergency medical transportation assistance may be provided at no cost. In any other circumstance, Card Members may be responsible for the costs charged by third-party service providers.
³With Return Protection, you may return eligible purchases to American Express if the seller won’t take them back up to 90 days from the date of purchase. American Express may refund the full purchase price excluding shipping and handling, up to $300 per item, up to a maximum of $1,000 per calendar year per Card account, if you purchased it entirely with your eligible American Express® Card. Purchases must be made in the U.S. or its territories. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details.