How does the American Express Blue Cash card work?

Question

You don’t have to pay off all American Express cards every month. Most Amex credit cards allow you to carry a balance from month to month, requiring only a monthly minimum payment to keep your account in good standing. That’s the case with the Blue Cash Preferred® Card from American Express… read full answer and Blue Cash Everyday® Card from American Express, for example, as well as the The Amex EveryDay® Credit Card from American Express and others. Some even offer 0% introductory APRs.

On the other hand, you do have to pay some American Express cards in full every month. That includes The Platinum Card® from American Express, American Express® Gold Card and American Express® Green Card. But there are exceptions. If you have one of those cards and use it responsibly, American Express may offer to let you pay for certain purchases over time. Interest will apply to such purchases, though, at a rate that won’t be disclosed until Amex extends an offer.

You can check out WalletHub’s review of the best American Express credit cards to find a good option for carrying a balance. Just don’t expect to find a low regular APR. American Express credit cards are known more for rewards than low rates.

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Answer 1 · 2021-10-14 21:19:55

Keyaira Sutton, WalletHub Analyst

@keykey • 10/14/21 This answer was first published on 04/23/21 and it was last updated on 10/14/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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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. 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, unlike Amex charge cards. Paying in full will help you maximize your savings from rewards, however.

The Blue Cash Everyday card from American Express gives 3% cash back at U.S. supermarkets (up to $6,000 spent per year), 2% back at U.S. gas stations and select U.S. department stores, and 1% back on all other purchases, earned as statement credits. Blue Cash Everyday also has an introductory APR of 0% for 15 months on purchases. If you’re planning any big upcoming purchases that you want to pay off over a period of time, making the purchase on a Blue Cash Everyday card could save you a lot in interest charges. Make sure you pay your balance before the regular APR kicks in, as it has the possibility to be quite high – at 13.99% - 23.99% (V), based on creditworthiness.

The other card, called Blue Cash Preferred, 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 the Blue Cash Preferred card comes with an annual fee of $95 ($0 intro for the first year).

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.

How does the American Express Blue Cash card work?

Keyaira Sutton, WalletHub Analyst

Blue Cash Everyday® Card from American Express

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