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Blue Cash Preferred® Card from American Express review

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Blue Cash Preferred® Card from American Express
4.3
★★★★★
Finder score
Terms and conditions apply. Rates and fees
Welcome offer
$250
Cash back
Up to 6%
Annual fee intro for the first year ($95 thereafter)
$0
Intro purchase APR for the first 12 months (then 19.24% to 29.99% variable)
0%
Terms apply to American Express benefits and offers. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit

Our verdict

Earn up to 6% cashback as statement credit with this family rewards card.

The Blue Cash Preferred® Card from American Express is a busy family’s best friend. It offers 6% cash back as statement credit at U.S. supermarkets on up to $6,000 per year in purchases and 1% on eligible purchases after that. Spending $500 each month at U.S. supermarkets can earn you $360 annually in this category alone, which is the highest reward rate on groceries you can get with a credit card.

What's more, this isn't the only high cashback rate category. Earn 6% back on select U.S. streaming services and 3% back at U.S. gas stations and transit purchases. For all other eligible purchases, you'll earn 1% back.

The only consideration is a $95 annual fee. But the annual fee only applies after the first year you own the card — for the first year, the card's intro offer means you'll pay $0 to own the card. After the first year, you can easily offset the $95 annual fee with everyday spending.

Despite the annual fee, this is one of the most rewarding credit cards you can currently get. The card's earning categories make it an excellent fit for an average-sized family, solo or duo city-dwellers who can take advantage of both the supermarket earnings as well as transit earnings.

Pros

  • Welcome offer. Earn a $250 statement credit after spending $3,000 in purchases during your first 6 months of card membership.
  • Earn cash back. Earn 6% cash back at U.S. supermarkets on up to $6,000 per year. After that, you'll earn 1% back. You'll also earn 6% on select U.S. streaming services and 3% on transit purchases. At U.S. gas stations, you'll earn 3% back. For all other eligible purchases, you'll get 1% back.
  • Intro APR period. Enjoy a 0% intro APR period on purchases and balance transfers for the first 12 months of account opening. After that, a variable APR of 19.24% to 29.99% applies.

Cons

  • Annual fee. The card comes with a $95 annual fee after the first year intro.
  • Cashback cap on groceries. Your 6% cashback rate at U.S. supermarkets is capped on up to $6,000 each year, and 1% after that.

In this guide

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  • Details
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    • Fees
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finder.com's rating: 4.3 / 5

★★★★★

  • Get this card if you want to earn the highest cashback rate on groceries.
  • Pick something else if you want to earn rewards on takeout or at restaurants.
  • Apply with a good to excellent credit score of 670 or higher.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Details

Features

Annual fee $0 intro annual fee for the first year ($95 thereafter)
Annual fee conditions $0 intro annual fee for the first year, then $95.
Welcome offer $250 statement credit after spending $3,000 in the first 6 months
Rewards 6% on select U.S. streaming services, 3% on transit and U.S. gas stations, 6% at U.S. supermarkets on up to $6,000 annually, then 1% after that and on other eligible purchases (redeem as statement credit)
Purchase APR 0% intro for the first 12 months (then 19.24% to 29.99% variable)
Balance transfer APR 0% intro for the first 12 months (then 19.24% to 29.99% variable) Either $5 or 3% of the amount of each transfer, whichever is greater
Minimum credit score 670
Issuer American Express

Fees

Balance transfer fee Either $5 or 3% of the amount of each transfer, whichever is greater
Cash advance rate 29.99% 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 $40
Returned payment fee Up to $40
Additional cardholder fee $0
Security deposit N/A
Rates & fees Terms apply, see rates & fees

How to apply for the Blue Cash Preferred® Card from American Express

To apply for the Blue Cash Preferred® Card from American Express, you’ll just need to do the following:

  1. Select Go to site.
  2. Fill out your personal information and choose Submit.
  3. To qualify for the Blue Cash Preferred, you’re going to want to apply with a good to an excellent credit score of 670 or higher.

Blue Cash Preferred® Card from American Express benefits

  • Rewards. The Blue Cash Preferred® Card from American Express can net value on groceries from U.S. supermarkets, unlike any other card. With 6% cash back as statement credit on up to $6,000 annually, reverting to 1% after reaching the cap, this is the highest rate you can earn in this category. You also earn 6% back on select U.S. streaming services and 3% back at U.S. gas stations and on transit purchases. For all other eligible purchases, you’ll receive 1% back. We’ve created a full list of included services for easy reference on what these categories include.
  • Welcome offer. Earn up to $250 in statement credits as a welcome offer. Earn a $250 statement credit when you spend $3,000 in your first 6 months. The six-month time frame for earning this bonus is notable since it’s helpful for families who might need the extra wiggle room because of financial strains and it’s a rare feature to find on many reward card signup bonuses.
  • Intro APR. This card’s intro APR on purchases and balance transfers is another strong feature that helps make this card a strong choice for families. With 12 months to pay off your purchases and balance transfers under the intro APR, you can make some large or important purchases up front with time to comfortably pay it off.
  • Plan It. Plan It is an interesting feature that lets you create payment plans to split up large payments into monthly installments. Creating this plan usually carries a fee of up 1.33%, but for the first 12 months of account opening you can create these plans with an intro 0% plan fee. (Terms apply, see rates & fees)
  • Complimentary ShopRunner membership. Enjoy free two-day shipping and extended warranties on covered purchases through ShopRunner after enrollment.

Blue Cash Preferred® Card from American Express drawbacks

  • Rewards cap. The Blue Cash Preferred® Card from American Express‘s U.S. supermarket earning rate is great — until you spend $6,000 on groceries in a calendar year. After that, the rate falls to a paltry 1% cash back.
  • Not widely accepted abroad. The Blue Cash Preferred® Card from American Express is an Amex card, which means it isn’t as widely accepted overseas as a Mastercard or Visa. However, the earning categories on this card also work strictly within the US. That means if you do happen to travel abroad and use this card, you won’t necessarily earn cash back on your purchases unless you find a merchant that accepts Amex.
  • Gas and supermarket limitations. One of the most important things to look at before applying for this card is the list of eligible supermarkets and gas stations. Under the American Express retail category information page, Target and Wal-Mart are labeled as “superstores” and not supermarkets, for example. Other types of specialty stores such as wine and cheese shops, or warehouse clubs like BJ’s Club are also not included. These fussy details pertain to gas stations too — only merchants that are “in the primary business of selling gasoline to consumers” are eligible for the increased earning rate. Mobil, Shell and Exxon are a few listed examples. This means if you won’t earn the 3% cash back if get your gas at Costco or Target.

Compare Blue Cash Preferred to similar credit cards

There’s a lot of competition in the everyday rewards space, so here’s a breakdown of the Blue Cash Preferred vs. two similar cards to give you a sense of how the Blue Cash Preferred stacks up.

Blue Cash Preferred® Card from American Express

Blue Cash Everyday® Card from American Express

★★★★★

Finder rating 4.3 / 5

★★★★★

Finder rating 4.6 / 5

Go to site
Terms apply, see rates & fees
Go to site
Terms apply, see rates & fees

Minimum credit score

670

Minimum credit score

670

Annual fee

$95 after the first year intro

Annual fee

$0

Purchase APR

0% intro

Purchase APR

0% intro

Balance transfer APR

0% intro for the first 12 months (then 19.24% to 29.99% variable) Either $5 or 3% of the amount of each transfer, whichever is greater

Balance transfer APR

0% intro for the first 15 months (then 19.24% to 29.99% variable) Either $5 or 3% of the amount of each transfer, whichever is greater.

Rewards

Up to 6% cash back

Rewards

Up to 3% cash back

Welcome offer

$250 statement credit after spending $3,000 in the first 6 months

Welcome offer

Earn a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months.

Go to site

How much money can you make with the Blue Cash Preferred® Card from American Express?

Here’s a quick example of the kind of cashback you might in a month earn using the Blue Cash Preferred® Card from American Express, assuming some common spending values.

CategorySpendingCashback earned
U.S. supermarkets (6% on up to $6,000 annually, then 1%)$500$30
U.S. gas stations and transit (3%)$200$6
U.S. streaming services (6%)$50$3
Other purchases (1%)$2,000$20

Total cashback in one month = $59 in statement credits. If you keep the same spending amounts, that’s $708 back in one year.

Blue Cash Preferred® Card from American Express customer reviews and complaints

As of August 2021, American Express sports an A+ rating from the Better Business Bureau and has been accredited since 1948. It has received 3,331 customer complaints, all of which the provider has addressed and closed out.

Trustpilot rates the provider a bit lower with a 1.9 out of 5.0. A majority of the negative customer reviews on the site mention American Express customer service as the primary pain point.

Users on social media, such as Reddit, tend to praise this card for the large earning rate and solid customer service American Express offers. Those less satisfied with the card point to supermarket and gas station restrictions as a big point to watch out for — especially if you often shop at stores like Target and Walmart.

How to make the most out of your Blue Cash Preferred® Card from American Express

Amex makes it easy to make the most out of your Blue Cash Preferred® Card from American Express so long as you spend it on the right categories. Here are a few quick tips for maximizing rewards using the card:

  • Spend up to the cap. The Blue Cash Preferred® Card from American Express‘s big claim to fame is the 6% back on U.S. supermarkets, so take it for all its worth. Spending at least up to the $6,000 annual cap helps ensure you make the most of what the card offers and will more than make up for the annual fee. After you reach the cap, you’ll earn 1% back in this category.
  • Don’t forget about streaming. This card also earns 6% back on select U.S. streaming services. You probably spend considerably less on Netflix and Hulu than you do on groceries, but this value can still add up.
  • Review eligible merchants. To earn the cashback rate listed on the card, you’ll need to make purchases at eligible merchants,supermarkets and gas stations. Review the card’s terms and conditions to make sure you’re not missing out.

What services count as streaming and transit?

Under transit, you’ll get rewards for:

  • Trains
  • Taxicabs
  • Rideshare services
  • Ferries
  • Tolls
  • Parking
  • Buses
  • Subways

Current supported streaming services include:

  • Amazon Music Unlimited
  • Apple Music
  • Apple TV+
  • AT&T Now
  • Audible
  • CBS All Access
  • Disney+
  • ESPN+
  • Fubo TV
  • HBO Now
  • Hulu
  • iHeartRadio
  • Kindle Unlimited
  • Luminary
  • MLB.TV
  • NBA League Pass
  • Netflix
  • NHL.TV
  • Pandora
  • Prime Video
  • Showtime
  • Sling TV
  • SiriusXM Streaming and Satellite
  • Spotify
  • Stitcher
  • YouTube Music Premium
  • YouTube Premium
  • YouTube TV

Bottom line

If you’re looking for a superb cashback card designed for the modern day family, look no further than the Blue Cash Preferred® Card from American Express. While there are other grocery and gas cashback cards out there, none offer up to a 6% rate like Blue Cash Preferred® Card from American Express. The raw earning power of this card across a variety of categories and flexible welcome offer make it a great choice for families who want a rewards card.

If you’re looking for more than just cash back on your rewards card, however, compare your other plenty of rewards card options to find one that best fits your financial needs.

How we determined the value of Amex Membership Rewards points

To determine the average value of an Amex Membership Rewards point, we looked at the equivalent dollar value a redemption option would cost in the Amex Membership Rewards program. We calculated this average across all redemption options available through Amex to reach the approximate value you can expect when redeeming these points on average. In this case, the average value of a single Membership Rewards point came out to 2 cents per point.

Remember that your points could be worth more or less depending on what you redeem them on, so this value should be used as a general guide.

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.

Insurance benefit note: Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Images: AmericanExpress.com

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