Currently, there is an array of cash-back credit cards available, and choosing the right one for your spending habits can get overwhelming. The Blue Cash Everyday® Card from American Express is a popular pick for its solid rewards on groceries, gas, and online shopping. However, it’s important to examine the card closely to determine if it’s a good fit. Based on creditpolice research we identified 7 key things to know before applying.
1. Generous Grocery Rewards, With a Catch
For families and individual spenders. One of the biggest perks of the Blue Cash Everyday® Card is its 3% cash back rate at U.S. supermarkets, on the first $6,000 in spending annually (then 1% back). This can equate to $180 per year if you max out the cap.
However, American Express has strict criteria for merchants that qualify as “supermarkets.” Warehouse clubs, superstores, specialty food stores, and convenience stores are excluded. So be mindful that where you shop matters. Opting for traditional grocers like Kroger or Safeway over Costco could make a difference of hundreds of dollars a year.
2. Gas Rewards Are Nice, But Rival Cards Go Further
You’ll also earn 3% cash back on the first $6,000 per year in gas station spending (then 1% back), which can effectively give you a small discount at the pump. However, gas rewards on warehouse clubs like Costco don’t qualify. Other cards like the Bank of America® Customized Cash Rewards credit card offer 3% back on gas without imposing a cap.
So while the Blue Cash Everyday’s gas rewards are decent, they aren’t best in class. Savvy consumers may prefer alternatives with higher uncapped gas rewards.
3. Online Shopping Rewards, with Limits
Do you love buying clothes, gadgets, or other goods online? Purchases made directly through a retailer’s website or app qualify for 3% cash back, on up to $6,000 yearly (then 1% back). This is a nice perk for avid online shoppers.
However, American Express excludes services like travel booking and food delivery ordered online. Only tangible items shipped count for the bonus. And warehouse clubs online don’t qualify either.
4. All Other Purchases Get a Modest 1% Back
Once you exceed the $6,000 annual spending limits in the 3% cash back categories, you’ll earn 1% back on further eligible purchases. The same 1% rate also applies to all other transactions like dining, entertainment, travel, etc.
While modest, a flat 1% return on non-bonus spending still beats no rewards at all. However savvy consumers may prefer cards that offer 2% back or more across all purchases.
5. A Lucrative Welcome Bonus with a Big Catch
New Blue Cash Everyday cardholders can earn a $200 statement credit after spending $2,000 on purchases within the first 6 months. That gives you an extra 10% back on spending to earn the bonus.
However, qualifying purchases don’t earn regular cash-back rewards. And you must meet the $2,000 minimum spend within the 6-month timeframe. If you don’t, you won’t earn the welcome bonus.
6. An Intro 0% APR on Purchases, With a Time Limit
New cardholders enjoy a 0% intro APR on purchases and balance transfers for 15 months (balance transfers require a fee). This intro period can save big on interest for large purchases.
But the 0% APR is only temporary. It expires after 15 months. The ongoing purchase APR is a variable of 19.24%-29.99% based on your creditworthiness. So don’t carry balances long term.
7. No Annual Fee, With a Caveat
Unlike many rewards cards, the Blue Cash Everyday® Card doesn’t levy an annual fee. This makes the card easy to retain long-term without added cost.
However, some of its sibling card from American Express like the Blue Cash Preferred®, has a $95 annual fee but earns more cash-back on U.S. supermarkets (6% on the first $6,000 annually) but for big supermarket spenders, the fee may be justified by higher rewards.
The Bottom Line
With 3% cash back on U.S. supermarket purchases, gas stations, and select online retail shopping, the Blue Cash Everyday® Card from American Express can be rewarding. But pay close attention to the finer details of qualifying purchases and spending limits to ensure they align with your shopping habits.
All information about The Blue Cash Everyday® Card from American Express has been collected independently by CreditPolice. The card details on this page have not been reviewed or provided by the card issuer.
To view rates and fees of the Blue Cash Everyday® Card from American Express, see this page.