Is the American Express Blue Cash Preferred Card Worth Your Money

The American Express Blue Cash Preferred Card is a popular choice for those looking to earn cash back on their everyday purchases. It offers a generous 6% cash back on groceries, 3% on gas, and 1% on everything else.

To put this into perspective, let's say you spend $500 per month on groceries. With the Blue Cash Preferred Card, you'd earn $30 per month in cash back rewards, which adds up to $360 per year. That's a significant amount of money back in your pocket.

The card also has a $0 annual fee for the first year, but it increases to $95 after that. However, considering the rewards you can earn, it might be worth paying the fee.

The Blue Cash Preferred Card from American Express offers a range of benefits that can enhance your financial experience.

With Amex Offers, you can get discounts at participating merchants, such as restaurants, clothing stores, and hotels, when you meet spending requirements and other terms. Enrollment is required.

You can also enjoy free two-day shipping on eligible items at over 100 online stores through ShopRunner, also with enrollment required.

Travel insurance and protections are available when you pay for travel expenses with your card, including car rental loss and damage insurance and a global assist hotline.

Purchase protection is also offered, which helps if you try to return an eligible item within 90 days from the date of purchase and the merchant won't take it back. The coverage is limited up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year.

Instant card number is available for eligible applicants, allowing them to use the new card before it arrives in the mail.

Here are some of the additional benefits of the Blue Cash Preferred Card:

The Blue Cash Preferred Card from American Express comes with a $0 intro annual fee for the first year, then $95 after that. This fee is worth it if your spending habits align with the card's bonus categories.

You can break even on the annual fee with the rewards from your grocery purchases alone if you spend about $1,600 each year at U.S. supermarkets (or roughly $30 per week).

There's also a foreign transaction fee of 2.7% of each transaction after conversion to U.S. dollars, making this not the best card for frequent travelers. You'll also pay a balance transfer fee that's either $5 or 3% of the amount of each transfer, whichever is greater, and a late payment fee.

Here are the fees associated with the Blue Cash Preferred Card:

With the Amex Blue Cash Preferred Card, you can get reimbursed for stolen or damaged items, up to $1,000 per purchase.

This protection covers eligible purchases made with the card, and you can file a claim up to 90 days from the purchase date.

You can receive up to $50,000 in reimbursement per calendar year, which is a significant amount of protection.

If you're worried about losing or damaging something you bought with the card, this purchase protection can give you peace of mind.

The Blue Cash Everyday Card from American Express has a foreign transaction fee of 2.7%, making it not the best choice for frequent travelers.

New cardholders can take advantage of 0% intro APR for 15 months on purchases and balance transfers, but the APR is 18.24%-29.24% variable after that.

The balance transfer fee is either $5 or 3% of the amount of each transfer, whichever is greater.

There's also a late payment fee, but it's avoidable if you pay your balance off in full each month.

The Amex Blue Cash Preferred Card has a $0 intro annual fee for the first year, then $95, but you can recoup the fee with rewards if you spend a minimum of $1,584 annually at U.S. supermarkets.

The card also has a 2.7% foreign transaction fee if you use it abroad.

Here are the fees associated with the Amex Blue Cash Preferred Card:

The Amex Blue Cash Preferred Card offers a generous earning structure, with cardholders earning 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, then 1% back. This can add up quickly, especially for families who spend a lot on groceries.

You can also earn 6% back on select U.S. streaming subscriptions, including popular services like Netflix, Hulu, and Spotify, and 3% back at U.S. gas stations. Transit purchases can also earn 3% back, worldwide.

Here are some key earning categories to keep in mind:

The earning structure is straightforward, with clear limits and exclusions in some cases, such as superstores, convenience stores, and meal-kit delivery services.

The Amex Blue Cash Preferred Card offers a generous earning structure, with cash back rewards in popular categories. You can earn 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, then 1% back.

To maximize your rewards, focus on spending in the 6% categories, such as groceries, streaming services, transit, and gas. For example, if you spend $10,000 per year at Kroger or Whole Foods, you'll earn $360 in cash back on the first $6,000 and another $40 back earning 1% beyond the $6,000 cap each year.

Here are the eligible streaming services that earn 6% cash back:

You can also earn 3% cash back on transit and 3% cash back at U.S. gas stations, excluding superstores, supermarkets, and warehouse clubs.

Return Protection is a valuable feature that can save you headaches when shopping with your Amex Blue Cash Preferred Card.

You can get up to $300 per eligible item if the original seller won't accept a return, with a maximum of $1,000 per calendar year.

This coverage is only available on eligible items and has a time limit of 90 days from the purchase date.

The specific details of this benefit, including eligibility and benefit levels, can be found on the American Express website, americanexpress.com/benefitsguide.

The Amex Blue Cash Preferred Card offers a welcome bonus of a $250 statement credit after spending $3,000 in eligible purchases within the first six months from account opening.

This bonus can help jump-start your cash back earnings, but it's worth noting that the biggest opportunity to earn cash back may lie in regular purchases you make over time.

The welcome bonus requires a minimum spend of $3,000 in eligible purchases within the first six months from account opening to qualify for the $250 statement credit.

To make the most of the welcome bonus, focus on making large purchases in the first six months of having the card.

The Amex Blue Cash Preferred Card also comes with access to the Amex Offers program, which can get you cash back or bonus points when you shop with specific retailers and travel brands.

You can view all your available offers by logging into your card account and scrolling down, but eligibility for these offers is limited and enrollment is required in the Amex Offers section of your account before redeeming.

This means you'll need to actively check your account and enroll in offers to take advantage of them.

If the Blue Cash Preferred Card's annual fee is too expensive, consider these alternatives.

The Blue Cash Everyday Card from American Express is a great option for grocery shoppers on a budget, offering 3% back at U.S. supermarkets on the first $6,000 spent each calendar year, then 1% back.

The Capital One Savor Cash Rewards Credit Card could be a good option if you eat out a lot instead of cooking at home, but it's not mentioned what kind of rewards it offers.

If you prefer earning points over cash back, the American Express Gold Card is another option, with a higher annual fee of $325, but it offers 4x points at U.S. supermarkets on up to $25,000 in purchases per year, then 1x.

Here are some key differences between the Blue Cash Preferred Card and its alternatives:

We reviewed the best credit cards by comparing them on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as required credit and customer reviews when available.

Our team analyzed 234 of the most popular credit cards available in the U.S. to determine which ones offer the best value. We considered additional perks, the application process, and how easy it is for the consumer to redeem points.

We partnered with location intelligence firm Esri to get the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. This data helped us create a sample annual budget of approximately $22,126 in retail spending.

The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862), and general purchases ($3,953). We used this budget to estimate how much the average consumer would save over the course of a year, two years, and five years.

To evaluate the Amex Blue Cash Preferred Card, our experts compared it to similar cash-back cards and other rewards cards with a similar annual fee. They considered factors such as simplicity, rewards earning potential, benefits, and annual fee.

Here are the main criteria that factored into our review of the Amex Blue Cash Preferred Card:

Note that while the offers mentioned in this article are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.

If the annual fee for the Blue Cash Preferred Card from American Express is too expensive, consider the Blue Cash Everyday Card from American Express, which has no annual fee and is great for grocery shoppers on a budget.

The Blue Cash Everyday Card earns 3% back at U.S. supermarkets on the first $6,000 spent each calendar year, then 1% back.

If you eat out a lot instead of cooking at home, the Capital One Savor Cash Rewards Credit Card might be a good option, offering a cash-back rewards program that can be a better fit for your wallet.

Approval Odds for these cards can be determined by Credit Karma, which compares your credit profile to other members who were approved for the card.

Approval Odds are not a guarantee of approval, and may be affected by factors such as your income and employment.

Here are some alternatives to consider:

Keep in mind that Approval Odds are not a guarantee of approval, and may be affected by factors such as your income and employment.