Blue Cash Preferred® Card from American Express
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 on transit including taxis/rideshare, parking, tolls, trains, buses and more. 3% Cash Back at U.S. gas stations. 1% Cash Back on other purchases.
- Intro bonus: $300
- Annual fee: $0 introductory annual fee for one year, then $95.
- Regular APR: 13.99%-23.99% Variable
- Recommended credit score: 670-850 (Good to Excellent)
The Blue Cash Preferred Card from American Express is one of the only cash back cards available that we think is worth its annual fee, especially for modern families. This card’s excellent rewards on everyday purchases can help you maximize all of your most frequent spending — from dining in to at-home entertainment to the expenses that come with your daily commute.
At a Glance
- 6% cash back at U.S. supermarkets (up to $6,000 in purchases annually, then 1%)
- 6% cash back on select U.S. streaming services
- 3% cash back at U.S. gas stations and on transit
- 1% cash back on everything else
- Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- $0 introductory annual fee for one year, then $95.
- 0% introductory APR on purchases for the first 12 months, then 13.99 – 23.99% variable APR
Pros
Great rewards value for everyday spending categories
0% introductory interest offer for new purchases
Competitive welcome bonus
Cons
$0 introductory annual fee for one year, then $95
Redeem rewards only after $25 earned
U.S. supermarket rewards capped after $6,000 annual spend
Additional Card Details
The Blue Cash Preferred’s primary draw is its high-value cash back rewards, but being an American Express card adds a few more perks, including early ticket access and seating through American Express Experiences, return and purchase protection, and car rental loss and damage insurance.
This card is also eligible for AmEx’s Pay It, Plan It feature. Pay It is a mobile app feature that lets you quickly pay off specific small, eligible purchases under $100 before your statement is due. While this feature can help simplify the process, you can always make payments (of any amount) toward your card balance throughout your billing cycle, lowering your credit utilization and potentially boosting your credit score.
Plan It, on the other hand, allows you to opt into an installment plan for eligible purchases over $100. To enroll, you’ll choose among three plan options, each with varying durations, monthly payments, and fees. These monthly payments are added to your card’s payment due balance each month until the plan is paid in full. As long as you meet your monthly payments under the plan, you won’t accrue extra interest on the purchase, which can make Plan It a good option for any balance you can’t pay down immediately (once your 0% intro period ends).
Full Review
Card Type
The Blue Cash Preferred Card from American Express is a cash back credit card.
Annual Fee
The card does not carry an annual fee for the first year. However, it is $95 after that.
Welcome Offer
New cardmembers can earn a $300 statement credit after spending $3,000 within the first six months of account opening.
Rewards
Cardmembers will earn 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year), as well as 6% cash back on select U.S. streaming services. They will also earn 3% cash back at U.S. gas stations and on transit, plus 1% cash back on everything else.
Foreign Transaction Fees
The Blue Cash Preferred Card from American Express charges a 2.7% foreign transaction fee.
Blue Cash Preferred Card from American Express Benefits
Notable benefits from the Blue Cash Preferred Card include $0 annual fee for the first year ($95 after that), 6% cash back at U.S. supermarkets (up to $6,000 per year) as well as 6% cash back on select streaming services and a competitive welcome bonus — a $300 statement credit after spending $3,000 in the first six months.
Cardmembers also have access to a 24/7 Global Assist Hotline to help coordinate medical, legal, financial, and other emergency assistance and coordination while abroad. This can include medical and legal referrals, as well as emergency cash wires and even missing luggage assistance.
The card also comes with car loss and damage insurance, as well as return protection on eligible purchases.
Blue Cash Preferred Card from American Express Drawbacks
Some drawbacks of the card are its $95 annual fee (after the first year) and cap on supermarket cash back purchases at $6,000. Additionally, you can only redeem your cash back rewards after you earn $25.
How to Use Blue Cash Preferred Card from American Express
There are things you can do to maximize the Blue Cash Preferred.
First, use this card for each purchase you make at eligible U.S. supermarkets until you reach the $6,000 cap each year. Set up the Blue Cash Preferred as your primary payment on any of your eligible U.S. streaming subscriptions, and keep on hand to use anytime you stop to refuel at the gas station.
You should also have a spending plan to ensure you qualify for the $300 welcome bonus. To meet the $3,000 spending threshold within the first six months of account opening, you’ll need to spend more than $300 monthly. Keep in mind, these should be purchases you already plan to make — a one-time welcome bonus is not worth taking on debt after overspending money you don’t have.
Blue Cash Preferred Rewards
Consider a family who spends an average $15,000 annually, or $1,250 each month, on a credit card. Their monthly spending breaks down to an average $500 at the supermarket, $50 on various streaming services, $400 at gas stations, and an additional $300 elsewhere. Over the course of a year, here’s what they could earn with the Blue Cash Preferred:
| Spending | Annual Rewards | |
|---|---|---|
| U.S. Supermarkets (6%, up to $6,000 in spend) | $6,000 | $360 |
| Select U.S. Streaming Services (6%) | $600 | $36 |
| U.S. Gas Stations (3%) | $4,800 | $144 |
| Other Purchases (1%) | $3,600 | $36 |
| Total | $15,000 | $576 |
After accounting for the $95 annual fee (waived the first year), this family would save $481 each year with the Blue Cash Preferred. Just the rewards on groceries or gas stations alone make the card more than worth its cost in this example.
Blue Cash Preferred Compared to Other Cards
Blue Cash Preferred® Card from American Express
- Intro bonus:$300
- Annual fee:$0 introductory annual fee for one year, then $95.
- Regular APR:13.99%-23.99% Variable
- Recommended credit:670-850 (Good to Excellent)
- Learn more at our partner’s secure site.
Chase Freedom Unlimited®
- Intro bonus:$200
- Annual fee:$0
- Regular APR:14.99% – 23.74% Variable
- Recommended credit:670-850 (Good to Excellent)
- Learn more at our partner’s secure site.
Bank of America® Cash Rewards credit card
- Intro bonus:$200
- Annual fee:$0
- Regular APR:13.99% – 23.99% Variable APR on purchases and balance transfers
- Recommended credit:670-850 (Good to Excellent)
- Learn more at our partner’s secure site.
All information about the Bank of America Cash Rewards credit card has been collected independently by NextAdvisor and has not been reviewed by the issuer.
Is the Blue Cash Preferred® Card from American Express Right for You?
Blue Cash Preferred excels when combined with typical family budgets largely dedicated to grocery bills and gas stations. It can be especially lucrative for families with several mouths to feed and activities to shuttle to and from. But anyone who has added to their streaming subscription lineup or leaned into a cooking hobby as a result of this year’s increased time at home will likely benefit.
Before you apply, do the math to ensure the potential rewards on your spending outweigh the $95 annual fee (waived for the first year). Additionally, if you spend well over the $6,000 cap at U.S. supermarkets each year, you may get better value from a card with a lower rewards rate but no spending maximum. Look over past statements and receipts to estimate your average spending in each category, so you can find your own rewards value.
Also make sure the merchants you frequent in each bonus category are eligible for bonus rewards. AmEx specifies its U.S. supermarkets category does not include superstores, convenience stores, or warehouse clubs, for example, so if you buy the majority of your groceries at Costco or Target, this card may not be your best choice.
Bottom Line
Editorial Independence
As with all of our credit card reviews, our analysis is not influenced by any partnerships or advertising relationships.
The Blue Cash Preferred Card from American Express offers one of the highest rewards rates available today for grocery spending, along with great rewards on gas and streaming. We believe that makes a great choice for those seeking savings on everyday spending, especially in 2020. These rewards, along with a $300 welcome bonus after spending $3,000 in the first six months, and 0% interest intro offer on new purchases for the first 12 months (13.99 – 23.99% variable APR thereafter) all add up to a great cash back card option. Just be sure to evaluate your own regular spending habits before you apply to determine whether Blue Cash Preferred is the best choice for you.
Frequently Asked Questions
What credit score is needed for Blue Cash Preferred?
You’ll need a good-to-excellent credit score of at least 670 to qualify for this card. Maintain great credit by practicing healthy credit habits and regularly monitor your score for any inaccuracies. Like any rewards credit card, you should eliminate your high-interest debt and ensure you can pay your balances down each month before applying for Blue Cash Preferred.
What stores are eligible for the 6% supermarket rewards rate with Blue Cash Preferred?
Supermarkets eligible for bonus rewards must be located in the U.S. and do not include superstores, convenience stores, and warehouse clubs, according to American Express. You can find a (non-exhaustive) list of eligible stores on the American Express website.
Is AmEx Blue Cash Preferred better than Everyday?
Blue Cash Preferred’s sister card, the Blue Cash Everyday® Card from American Express, has no annual fee, but there are a few important differences to consider.
You’ll earn 3% cash back at U.S. supermarkets with the Blue Cash Everyday, up to the same $6,000 annual spending cap (then 1%), 2% back at U.S. gas stations and select U.S. department stores, and 1% on everything else.
Using consumer spending data for the average American, NextAdvisor estimates the Blue Cash Preferred’s ongoing annual rewards value at $302.96 (including annual fee), and the Blue Cash Everyday’s annual rewards value at $242.95.
How do I redeem cash back on the Blue Cash Preferred® Card from American Express?
To redeem your cash back, log in to your account and click “Use Rewards Dollars.” You will then be able to select how many of your Rewards Dollars you would like to redeem.
How does cash back work on the Blue Cash Preferred® Card from American Express?
Each time you make a purchase with your Blue Cash Preferred Card, you’ll earn cash back. The exact amount will vary depending on the spending categories, which we outline above.
As soon as you accumulate 25 Reward Dollars, you can redeem your cash back for a statement credit. By doing so, you will be able to pay off part of your bill using eligible cash back earned on your credit card.
