The
Blue Cash Preferred® Card from American Express is one of the best cash back credit cards on the market and
easily worth its
$95 annual fee (charged from the second year on). Amex Blue Cash Preferred is especially good for people with good credit or better who spend a lot on groceries at U.S. supermarkets, U.S. streaming services, transit, and U.S. gas stations.
What I Like About Amex Blue Cash Preferred
Great initial bonus offer
The Blue Cash Preferred Card from American Express currently offers as high as $
300 cash back for spending
$3,000 on eligible purchases within
6 months of opening an account. Welcome offers vary and you may not be eligible for an offer. Here’s how it works:
- Apply and find out if you’re approved, along with your exact welcome offer amount.
- Accept the card with your offer.
- Spend at least $3,000 within 6 months.
- Receive your cash back.
It’s important to note that the cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
That’s a good deal if you can comfortably afford the spending requirement. The average cash rewards card that comes with an initial bonus offers
$238.74, according to our research.
One of the best for groceries & streaming services
This card offers
6% cash back on the first $6,000 that you spend at U.S. supermarkets each year. No credit card offers a higher earning rate on groceries, according to WalletHub’s database of 1,500+ offers. And the annual spending cap shouldn’t be too much of a concern, considering that
the average person only spends about $4,500 on groceries per year, according to our research.
Blue Cash Preferred also adds unlimited
6% cash back on select U.S. streaming services to the mix. The list includes pretty much everything you might think of, from Amazon Music, Apple Music and Audible to Hulu, Netflix, Spotify, various YouTube services, and more.
Great for gas & transit purchases
Amex Blue Cash Preferred is very rewarding at the gas pump, offering 3% cash back at eligible U.S. gas stations. This is about three times the market average.
Fortunately for cardholders, that 3% rate extends to a whole range of other transit expenses, too, from trains, taxis and ridesharing services to parking, tolls, and subway fare. So, even if you don’t have a car, you can still save while you get where you need to go.
No annual fee the first year
American Express Blue Cash Preferred doesn't charge an annual fee the first year. That’s like a second initial bonus, saving you an extra
$95.
0% intro APR promotions
New cardholders can get a 0% introductory rate on both new purchases and balance transfers for the first
12 months. You have to like that, considering how high most credit card interest rates are these days. But you don’t have to love it. Plenty of other cards offer 0% intro rates on these types of transactions for at least as long, and most of them don’t charge annual fees. There is also a balance transfer fee of
3% (min $5) to keep in mind. And Blue Cash Preferred’s regular APR is nothing special, either:
19.49% to 28.49% (V).
What I Don’t Like About Amex Blue Cash Preferred
Annual fee starting year two
The Amex Blue Cash Preferred Card’s standard annual fee is
$95 per year, and it applies starting the second year your account is open. This makes Blue Cash Preferred over
three times more expensive than the average credit card offer, according to our database of 1,500+ cards.
But even with this fixed cost taken into account, Blue Cash Preferred is still one of the most rewarding cards on the market. The average person, who makes about
$36,506 in purchases that can be paid for with a credit card each year, would earn more than $1,400 in net rewards value over the first two years of use, according to WalletHub calculations.
Not the best choice for carrying a balance
Although this card has a 0% introductory APR, it only lasts for
12 months. That brings the high regular APR into the equation sooner than it would with the best 0% credit card offers. Blue Cash Preferred charges
19.49% to 28.49% (V), and you definitely want to pay your balance in full every month when that rate is in effect. You can avoid interest charges if you do that.
Balance transfer fee
If you transfer a balance to Amex Blue Cash Preferred, you’ll have to pay a
3% (min $5) fee. It’s a pretty standard fee, but plenty of cards with similar fees have longer 0% interest periods.
Average rewards on most types of purchases
Any purchases you make with this card that don’t qualify for its bonus categories, including supermarket spending in excess of $6,000 per year, will get you just
1% cash back.
That’s roughly the market average for a cash rewards card, according to WalletHub’s latest
Credit Card Landscape Report, and an average rate isn’t ideal for someone with above-average credit. So Blue Cash Preferred works best as a bonus-rewards specialist.
Good or excellent credit needed
Not everyone can get Amex Blue Cash Preferred, considering that it's reserved for people with
good credit or better. So you may want to
check your latest credit score for free here on WalletHub to get a better idea of your chances before submitting an application.
Bottom Line: Is Amex Blue Cash Preferred Worth It?
The bottom line is that Blue Cash Preferred is an elite rewards card that provides the prestige of having an Amex and can save you a lot of money. You just need to pay the bill in full monthly when the regular APR is in effect, or else expensive interest charges will eat away at your rewards savings. If you’re able to earn lots of bonus cash and avoid interest, this card is definitely worth it.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
