How does the American Express Blue Cash card work?

The American Express Blue Cash cards work like normal credit cards, allowing users to borrow money for purchases, carry a balance, and pay off that balance later. Both the Blue Cash Everyday® Card from American Express and the Blue Cash Preferred® Card from American Express are regular credit cards that don’t need to be paid in full each month. Paying in full will help you maximize your savings from rewards, however.

Amex Blue Cash Everyday Highlights

The Amex Blue Cash Everyday card gives 3% cash back at U.S. supermarkets, U.S. gas stations and on U.S. online retail purchases (up to $6,000 spent per year in each category), as well as 1% back on all other purchases, earned as statement credits. This card also has an introductory APR of 0% for 15 months on purchases and balance transfers. So, if you’re planning any big upcoming purchases that you want to pay off over a period of time or you want to pay off exiting debt, making the purchase/balance transfer on a Amex Blue Cash Everyday card could save you a lot in interest charges. Make sure you pay your balance before the regular APR kicks in, though, as it has the possibility to be quite high – at 16.24% - 27.24% (V), based on your credit standing. Keep in mind that there is also a 3% (min $5) balance transfer fee.

Blue Cash Preferred Highlights

The Blue Cash Preferred card gives cardholders 6% cash back at U.S. supermarkets (up to $6,000 spent per year), 6% back on select U.S. streaming subscriptions, 3% back at U.S. gas stations and on transit, and 1% back on all other purchases, earned as statement credits. These rewards rates are very high, but note that this card comes with an annual fee of $95. The Blue Cash Preferred card also offers an intro APR of 0% for 12 months. After the intro period expires, though, the card’s regular APR can be anywhere between 16.24% - 26.24% (V), depending on your credit standing.

Keep in mind that you could lose money while using the Blue Cash cards as well, especially if you pay late or don’t pay your balance in full each month once any intro APR period expires. To avoid unnecessary interest charges and fees, keep your account in good standing and pay off your balance before interest begins accruing.