The Blue Cash Preferred® Card from American Express is widely considered one of the top cash-back credit cards. With stellar bonus category earnings rates and a generous welcome offer, it can help you maximize rewards on everyday spending.
However, this premium card does come with an annual fee. So is it right for you? Here’s an in-depth look at 7 key things you need to know before applying.
1. A Robust Cash Back Earning Structure
The Blue Cash Preferred® Card shines through its tiered cash-back structure across these popular spending categories:
- 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)* – This is the highest earning rate offered by any major credit card for grocery store spending. Based on the average annual household expenditure on groceries, cardholders can earn over $350 back through this category alone.
- 6% cash back on select U.S. streaming subscriptions – With the rising popularity of streaming services, this uncapped 6% rate can amount to decent savings for cord-cutters. Eligible platforms include Hulu, Netflix, Disney+, Apple TV+, Paramount+, Peacock, Discovery+, ESPN+, Sling TV, FuboTV, and many more.
- 3% cash back at U.S. gas stations* – At 3%, this is among the top gas station rewards rates. For households spending $200-$300 per month on fuel, it can add up to $90 or more in annual savings.
- 3% cash back on transit including taxis, rideshare, parking, tolls, trains, buses, and more* – This is a unique category not offered by many other cards. It can offset commute, rideshare, or public transport costs for urban dwellers.
- 1% cash back on other eligible purchases* – While not the highest general rate, 1% back is better than nothing on non-bonus spending.
The Blue Cash Preferred® Card goes beyond the standard dining and travel rewards categories to offer bonuses on necessities like groceries, gas, and transit. This can translate into big savings for consumers who spend heavily in these areas.
2. A Lucrative Welcome Bonus
New cardholders can earn a $250 statement credit after spending $3,000 on eligible purchases within the first 6 months of account opening. Compared to the average credit card bonus of $200 for spending $1,000, this is quite high-value and easier to attain.
You’ll have a generous 180 days to meet the minimum spend requirement. While $3,000 may seem high for a 3-month period, the extended 6-month timeframe makes completing the bonus spend more feasible.
As a new applicant, ensure you can organically spend $500 per month across the card’s bonus categories over 6 months before applying. This will help you earn the bonus without overspending.
3. 0% Intro APR on Purchases and Balance Transfers
Those with big purchases or existing balances can benefit from 12 months of 0% intro APR on purchases and balance transfers made within the first 60 days of account opening.* A balance transfer fee of 3% or $5, whichever is greater, applies.
After the intro period, a variable 19.24%-29.99% APR will apply based on your creditworthiness. This lengthy intro period lets you pay off large purchases or transferred balances over time without interest fees piling up.
4. Valuable Ancillary Benefits
Beyond rewards, the Blue Cash Preferred® Card from American Express offers an array of travel and purchase protections when you pay with the card:
- Rental car insurance – Provides secondary coverage against damage and theft for rental cars.
- Purchase protection – Covers new eligible purchases against damage or theft for 90 days, up to $1,000 per purchase.
- Extended warranty – Extends original U.S. manufacturer’s warranty by 1 year on warranties of 5 years or less.
- Return protection – Allows you to return an eligible item within 90 days from the date of purchase for a credit, of up to $300 per item.
- Global Assist Hotline – Provides 24/7 assistance coordinating medical, legal, and travel services while traveling internationally, away from home.
While a premium card, the Blue Cash Preferred® Card strives to provide complete coverage – both through its rewards structure and ancillary benefits.
5. The $95 Annual Fee
After the first year, the Blue Cash Preferred® Card from American Express charges a $95 annual fee. Depending on your spending habits, the bountiful 6% and 3% bonus category rewards can quickly offset this.
You’ll want to estimate your annual earnings using a rewards calculator and compare it to the fee. For context, a household that spends $500 per month at U.S. supermarkets and gas stations alone could earn around $900 in the first year once the welcome bonus is factored in.
If your earnings exceed $95 each year, the fee is easily justified. If not, opt for a no annual fee cash back card with lower rates like the Blue Cash Everyday® Card from American Express.
6. Limited Time Offers
Amex frequently provides limited-time promotions on the Blue Cash Preferred® Card targeted toward new applicants. Offers may include:
- Increased welcome bonuses – Recent offers have included a $300 or $350 statement credit for spending $3,000 in 6 months.
- Bonus cash back – Occasional offers include 10% back on purchases at restaurants worldwide or at U.S. gas stations for 6 months.
- First-year annual fee waived – You may be targeted for having the annual fee waived for your entire first year.
Check for any current offers on American Express’ website before applying to maximize savings.
7. Alternative No Annual Fee Option
The Blue Cash Everyday® Card from American Express offers a no-annual fee, toned-down version of the Blue Cash Preferred® Card. It provides:
- 3% cash back at U.S. supermarkets on up to $6,000 per year (then 1%)*
- 3% cash back at U.S gas stations on up to $6,000 per year (then 1%)*
- 3% cash back on select U.S. department stores
- 1% cash back on other eligible purchases
The Blue Cash Everyday® Card makes sense for lower spenders who can’t justify the $95 annual fee but still spend regularly at supermarkets and gas stations. Compare your estimated annual earnings against the Preferred’s fee to determine if the no-fee Everyday version fits your spending better.
The Verdict
For high earners across its bonus categories, the Blue Cash Preferred® Card from American Express is tough to beat. The 6% back on groceries and transit can lead to substantial annual savings that outweigh the annual fee. Moderate or low spenders may be better off with a no-fee alternative from Amex or other issuers.
What are your thoughts on the Amex Blue Cash Preferred? Which aspects are most appealing to you? Let me know in the comments!
All information about The Blue Cash Preferred® 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 Preferred® Card from American Express, see this page.
