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. You can also earn a $
250 statement credit if you meet the initial spending requirement.
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 savings.
What I Like About the American Express Blue Cash Preferred Card
Earn a $250 initial bonus
The Blue Cash Preferred Card from American Express currently offers a $
250 statement credit for spending
$3,000 on eligible purchases within
6 months of opening an account. That’s a good deal if you can comfortably afford the spending requirement. The average cash rewards card that comes with an initial bonus offer of
$236, according to our research.
One of the best for groceries & streaming services
The American Express Blue Cash Preferred 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 and transit purchases
Amex Blue Cash Preferred is very rewarding at the gas pump, offering 3% cash back at eligible U.S. gas stations. 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
Amex Blue Cash Preferred offers 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 the American Express Blue Cash Preferred Card
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 about
four times more expensive than the average credit card offer, according to our research.
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 Blue Cash Preferred has a 0% introductory APR, it’s only about average in length. That brings Blue Cash Preferred’s high regular APR into the equation sooner. It’s
19.49% to 28.49% (V), depending on factors such as your credit history, income and debt.
None of the possibilities are that appealing, so it’s best to pay your balance in full every month. If you do that, you won’t accrue interest charges.
Balance transfer fee
If you transfer a balance to Amex Blue Cash Preferred, you’ll have to pay a fee of
3% (min $5). 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, which isn’t ideal for someone with above-average credit. So Blue Cash Preferred is 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.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
