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finder.com’s rating: 4.0 / 5.0
★★★★★
$250
Welcome offer
Up to 6%
Cash back
$95
Annual fee
0%
Intro Purchase APR
for the first 12 months (then 14.49% to 25.49% variable)
| Product Name | Blue Cash Preferred® Card from American Express |
|---|---|
| Card type | American Express |
| Annual fee | $95 |
| Purchase APR | 0% intro for the first 12 months (then 14.49% to 25.49% variable) |
| Balance transfer APR | 0% intro for the first 12 months (then 14.49% to 25.49% variable) |
| Balance transfer fee | $5 or 3% of the transaction, whichever is greater |
| Cash advance rate | 26.74% variable |
| Cash advance fee | $10 or 5% of the cash advance amount, whichever is greater |
| Penalty APR | 29.99% variable |
| Foreign transaction fee | 2.7% of the transaction value |
| Interest free period | Up to 25 days |
| Late payment fee | Up to $39 |
| Returned payment fee | Up to $39 |
| Additional cardholder fee | $0 |
| Rates & fees | rates & fees |
Review by
Kliment Dukovski is a credit cards writer. He's written over 600 articles to help readers find and compare the best credit cards. Kliment has also written on money transfers, home loans and more. Previously, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.
American Express recently made changes to some of the Blue Cash Preferred® Card from American Express‘s benefits, which took effect on January 1, 2020:
Get 6% cash back at US supermarkets on up to $6,000 in purchases each year, with your rate reverting to 1% after. You’ll also earn 3% cash back at US gas stations, 6% cash back on US streaming services, 3% on transit purchases and 1% on all other purchases. Earn cashback rewards faster by adding authorized users for your family to your account.
The Blue Cash Preferred® Card from American Express occupies a unique position in the credit-card industry, as it’s the only card that offers 6% cash back.
There are cards that come close. The Chase Freedom® credit card offers strong cash back in rotating categories. And the U.S. Bank Cash+™ Visa Signature® Card offers cash back on up to $2,000 per quarter you activate in combined purchases in two categories of your choice, and after that.
Get a valuable 0% intro APR on purchases for the first 12 months your account is open and 0% intro APR in that same 12 months on balance transfers you make within 60 days of opening your account (see rates & fees). A 14.49% to 25.49% variable APR applies after the promotional period ends. If you’re planning to make a large purchase or transfer a balance from another card, the intro period could help you avoid paying unnecessary interest.
Spend $1,000 on purchases in the first 3 months your account is open to get $250 in statement credit. Relatively easy to obtain, the welcome offer can offset your annual fee for two years.
The Blue Cash Preferred® Card from American Express is incredibly valuable if you spend just within $6,000 a year on US supermarket purchases and a large amount on gas from US stations.
Here’s the cashback you might earn based on this hypothetical budget:
In total, you’d earn $528 cash back in a year. If you factor in the card’s annual fee, you effectively earn $433 cash back.
What really makes a difference is the excellent rewards rate you’ll get at US supermarkets. Evaluate your grocery budget; if it comes out to around $6,000 a year, you’ll earn excellent rewards.
Get free two-day shipping on purchases from more than 100 online retailers with a complimentary ShopRunner membership. You can also extend warranties on covered purchases, and if you damage your phone or another eligible item, it’s covered for up to $1,000 per item.
If you notice fraudulent activity on your card, call the number on the back of your American Express immediately and you won’t be held responsible for the unauthorized charges.
You may not have to worry if something happens to your rental car while driving on vacation. You’re covered from theft and damage when you pay for a car rental with your card.
When traveling more than 100 miles from home, you’ll have 24/7 access to medical, legal, financial and other emergency services you may need. However, you’ll have to pay for any third-party services.
The Blue Cash Preferred® Card from American Express comes with a $95 annual fee.
When traveling abroad, you might want to keep this card at home: It has a 2.7% foreign transaction fee.
You get 6% at US supermarkets — but on up to $6,000 in purchases only. After that, you’ll earn 1% cash back. Also, not every market qualifies for the 6% cash back. Ask American Express customer service or your favorite market to find out whether the place you shop at most often qualifies for the 6% cash back.
Because this card is backed by American Express, you may find it difficult to use internationally, where Visa and Mastercard are more widely accepted.
Late or returned payments could saddle you with a penalty APR of up to 29.99% variable. Not to mention that each late and returned payment fee can cost up to $39. (See rates & fees.)
The Blue Cash Preferred® Card from American Express offers 6% cash back at US grocery stores on up to $6,000 in purchases (then 1%). To break even with the annual fee, you’ll need to spend some $1,600 a year on groceries — or about $30 a week, which is an easy bar to clear for almost anyone looking for a rewards credit card.
You’ll need gas to get to work and take the kids to soccer practice. If you’re like the average American family that spends around $2,500 a year on gas, you can expect about $75 cash back from the Blue Cash Preferred® Card from American Express. Add the 1% cash back you’ll get from all other purchases, and the card’s annual fee will likely pay for itself a few times over when used regularly.
Best American Express Cash Back Cards
To apply for the Blue Cash Preferred® Card from American Express, you must be at least 18 years old and a resident of the United States.
When you apply, you’ll have to provide such information as your:
You can apply with a fair credit score of 570. But to get the lowest APR on purchases and balance transfers and a high credit limit, apply with a good to excellent credit score of 670 or higher.
To increase your chances of approval, apply with a good to excellent credit score of 670 or higher.
Negative customer reviewers generally complain of the low credit line they received and the 6% cash back not available at all supermarkets. Positive customer reviews praise the overall cash back potential and solid customer service.
American Express is accredited by the Better Business Bureau with a rating of A+ and a composite score of 3.78 out of 5 stars. Trustpilot, on the other hand, scores the credit company a 3 out of 10.
American Express can get you a decision on your application within minutes if the information you provide is accurate. Applications that need additional review may take several business days to process.
Once approved, your card will arrive by mail in seven to 10 business days.
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Head to your American Express online account and click Use reward dollars. You can redeem for statement credit when your reward dollars balance is $25 or more.
Occasionally, American Express will let you redeem your balance for other rewards such as gift cards or merchandise.
Best cash back credit cards for excellent credit
The Blue Cash Preferred® Card from American Express is strong in two categories: gas and groceries. If you spend up to $6,000 a year at eligible US supermarkets and at least $3,000 on US gas, you’ll benefit from the card’s excellent cashback features.
These two categories may not what you’re looking for, however. To find a card that better matches your needs, compare other American Express cards and learn about other card providers.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
Images: AmericanExpress.com
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