By Matthew Coan
The American Express Blue Cash Preferred® Card is one of the most popular credit cards for those looking to maximize their cash-back rewards. Known for its impressive earning potential on everyday purchases like groceries and streaming services, it has become a top contender for consumers who want to optimize their spending.
In this comprehensive review of the American Express Blue Cash Preferred, we will dive deep into the features, benefits, rewards, fees, and the best strategies to make the most of this card. Whether you're considering signing up for this card or simply want to learn more, this guide will provide you with everything you need to know.
The American Express Blue Cash Preferred® Card is a cash-back rewards credit card that offers high earning rates on key spending categories. Unlike many other cards that offer rewards points, the Blue Cash Preferred gives cash-back bonuses that you can redeem for statement credits or other rewards. It’s an excellent option for individuals who want straightforward rewards without the complexity of a points system.
Key Features at a Glance:
With so many credit card options available, you may wonder why the Blue Cash Preferred stands out. Here are several reasons why it’s a top pick:
Groceries are a significant expense for most households. The Blue Cash Preferred offers an impressive 6% cash back on up to $6,000 in US supermarket purchases per year (then 1%). That can amount to a significant reward if you do your grocery shopping regularly, especially if you shop at large grocery chains like Walmart, Target, or Costco.
As streaming services continue to dominate entertainment consumption, the Blue Cash Preferred offers 6% cash back on purchases with eligible U.S. streaming services like Netflix, Disney+, Hulu, Spotify, and others. This benefit is especially valuable for cord-cutters who rely on streaming for their entertainment needs.
Many people spend a significant amount on transportation and commuting, from rideshares like Uber and Lyft to parking fees, tolls, and public transportation. With 3% cash back on transit, the Blue Cash Preferred gives you a solid return on these everyday expenses.
Unlike some other credit cards that require you to activate bonus categories each quarter, the Blue Cash Preferred offers fixed bonus categories, so you don’t need to remember to activate or track rewards. The card is ideal for those who want to earn high cash back without having to manage rotating categories.
The Blue Cash Preferred also offers a generous welcome offer of $250 statement credit after you spend $3,000 in the first 6 months of account opening. This is a solid bonus that can help offset the annual fee, especially if you plan to use the card for large purchases.
As with all American Express cards, the Blue Cash Preferred gives you access to valuable perks, including purchase protection, extended warranty, and car rental insurance. You also have access to AmEx Offers, which can provide discounts and additional rewards with select merchants.
Understanding how to maximize the benefits of the American Express Blue Cash Preferred is key to getting the most value from the card. Here’s a breakdown of how this card works:
The Blue Cash Preferred earns cash back on your purchases. Depending on the category of purchase, you'll earn either 6%, 3%, or 1% cash back:
Check out our Best Credit Cards For Groceries.
The cash-back rewards you earn are automatically applied as statement credits to your account. You can use these statement credits to pay down your balance, reducing your overall debt.
You can also choose to redeem your rewards for gift cards or travel credits, though the best value typically comes from using the cash back as a statement credit.
The Blue Cash Preferred card comes with a $95 annual fee. While this fee might seem high compared to no-annual-fee cards, it is offset by the substantial rewards you earn, especially if you spend heavily in the bonus categories.
Here’s how the annual fee compares to the potential rewards:
So, if you’re spending in these categories, the rewards will more than cover the annual fee and leave you with additional cash back.
The APR for purchases ranges from 18.74% to 29.74% Variable APR, depending on your creditworthiness. Like most credit cards, it’s best to pay off your balance each month to avoid paying interest on your purchases.
Other fees to keep in mind include:
The American Express Blue Cash Preferred is ideal for individuals who:
While the Blue Cash Preferred offers impressive cash-back rewards in specific categories, it may not be the best fit for everyone. Here’s how it stacks up against other popular cash-back cards:
American Express also offers the Blue Cash Everyday® Card, which offers similar rewards but without the annual fee. However, it comes with lower earning rates:
The Blue Cash Everyday is a good choice if you want to avoid an annual fee but are okay with lower rewards in some categories. The Blue Cash Preferred is better for those who spend more on groceries, streaming services, and transit and are willing to pay the annual fee for higher rewards.
The Chase Freedom Flex℠ offers 5% cash back on rotating categories (activation required), 5% on travel purchased through Chase, 3% on dining and drugstores, and 1% on other purchases. While the Freedom Flex offers strong rewards in a variety of categories, it requires more effort to activate and track rewards. The Blue Cash Preferred offers a more straightforward, higher rate of rewards for grocery and streaming spending without the hassle of rotating categories.
The American Express Blue Cash Preferred® Card is a solid choice for those who spend heavily on groceries, streaming services, and transit. The 6% cash back on groceries and streaming is tough to beat, and the 3% on transit adds even more value for everyday spenders.
While the $95 annual fee may be off-putting for some, the high cash-back potential easily offsets this cost, especially for those who use the card for major household expenses. However, if you’re looking for a no-annual-fee card or prefer flexibility with rewards categories, you might want to explore other options like the Blue Cash Everyday® Card or Chase Freedom Flex.
Overall, if you’re able to make use of the card’s bonus categories, the American Express Blue Cash Preferred is a fantastic choice for earning cash back on everyday purchases and maximizing your spending.