Blue Cash Preferred® Card from American Express review: Unbeatable cash back on everyday spending

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The Blue Cash Preferred® Card from American Express offers industry-leading cash back rates on everyday spending categories, including 6% cash back on U.S. supermarkets (up to $6,000 per year, then 1%) and select U.S. streaming services. 

With added bonus categories like 3% cash back on transit and U.S. gas stations, the Blue Cash Preferred rewards you on your daily spending. This powerhouse cash back card also offers a $0 intro annual fee for the first year ($95 after), a solid intro APR offer, and a competitive welcome bonus. See rates and fees.

The Blue Cash Preferred card is best for those who spend on groceries, streaming services, and gas. But it may not be ideal for travelers or dining enthusiasts due to its lower rewards rate at restaurants and foreign transaction fees.

Blue Cash Preferred® Card from American Express overview 

The Blue Cash Preferred® Card from American Express offers a wide range of benefits that can appeal to most consumers. Here are the key things to know about this card:

• Rewards: 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit, including taxis/rideshare, parking, tolls, trains, buses, and more, 3% cash back at U.S. gas stations, and 1% cash back on all other purchases.
• Welcome bonus: Earn $250 cash back after you spend $3,000 in purchases within the first six months of card membership
• Annual fee: $0 introductory annual fee ($95 after). See rates and fees. 
• Introductory APR offer: 0% APR on purchases and balance transfers for 12 months from the date of account opening, followed by a variable APR of 19.24% to 29.99%. 
• Redemption options: The cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
• Additional benefits: Up to $84 in annual Disney Bundle streaming service statement credits ($7 monthly statement credit), access to exclusive discounts and bonus rewards at various retailers and restaurants via Amex Offers, purchase protection, return protection, extended warranty coverage, car rental loss and damage insurance, and access to the Global Assist Hotline for emergency assistance while traveling

Blue Cash Preferred® Card from American Express rewards 

In today's economy, American families are increasingly conscious of their spending, especially when it comes to essential expenses like groceries, gas, and transportation. 

The Blue Cash Preferred allows you to earn cash back on everyday purchases, potentially saving hundreds of dollars each year.

Earning rewards 

The Blue Cash Preferred is designed to reward you for your most common expenses — whether that be stocking your fridge, streaming the latest hit show, or filling up your tank. Here’s a closer look at this card’s rewards:

• 6% cash back on U.S. supermarket purchases (up to $6,000 per year, then 1%) 
• 6% cash back on select U.S. streaming subscriptions
• 3% cash back at U.S. gas station
• 3% cash back on transit purchases 
• 1% cash back on all other purchases

The standout feature of the Blue Cash Preferred is its 6% cash back rate at U.S. supermarkets, up to $6,000 annually. If you spend $500 monthly on groceries, you'll earn $360 in cash back over a year. Remember that superstores like Target and Walmart, wholesale clubs like Costco, and convenience stores are not eligible for the 6% rate. 

The Blue Cash Preferred Card also offers 6% cash back on select U.S. streaming services with no spending cap. This includes popular platforms like Netflix, Hulu, Disney+, and Spotify. This benefit can add up if you're a cord-cutter or enjoy streaming your favorite content. 

Commuters and frequent drivers will also appreciate the Blue Cash Preferred Card's 3% cash back on transit and U.S. gas stations. Transit includes taxis, rideshares, parking, tolls, trains, and buses. Gas station purchases exclude those made at superstores, supermarkets, or warehouse clubs. 

How much cash back could you earn? 

According to the most recent Consumer Expenditure Survey, U.S. households spent an average of $475 on groceries and $260 on gas. They also spent an average of $61 per month on streaming services, according to a Deloitte report. 

Using the Blue Cash Preferred, you significantly boost your savings through cash back. Let's break down the potential earnings based on average annual spending:

Over the year, this would add up to $713.52 in total cash back earned. 

How do these cash back rewards stack up? 

The Blue Cash Preferred card is the best grocery credit card on the market. The 6% rate at U.S. supermarkets surpasses competitors like the Capital One SavorOne Cash Rewards Credit Card (which offers only 3% cash back on groceries).

The Blue Cash Preferred’s 3% cash back rate at U.S. gas stations is competitive, though some cards may offer higher rewards. Take the Costco Anywhere Visa® Card by Citi, which offers 4% cash back on eligible gas and EV charging purchases, including gas at Costco.

One area where the Blue Cash Preferred Card falls short is in dining rewards. Unlike the American Express® Gold Card (4X points at restaurants) or the Capital One SavorOne Cash Rewards Credit Card (3% cash back on dining and entertainment), the Blue Cash Preferred Card only earns 1% cash back on restaurant purchases.

Redeeming rewards 

Cardholders have two options to redeem cash back:

• Statement credit: Apply your cash back directly to your account balance. There is no minimum redemption amount, and the credit will post to your account immediately.
• Amazon purchases: get your cash back to cover all or part of your Amazon purchases at checkout. You'll receive the full value of your cash back when redeeming through Amazon.

These redemption options are somewhat limited compared to other cash back cards that may offer gift cards, charitable donations, or travel rewards.

Blue Cash Preferred benefits 

The Blue Cash Preferred card offers a range of benefits that can help cardholders save money and protect their purchases. 

Sign up bonus

New cardholders can earn $250 cash back after spending $3,000 on eligible purchases within the first six months of account opening. This averages out to about $500 monthly in spending over the six months. 

The Blue Cash Preferred's welcome bonus is relatively generous compared to other cash back cards. You’ll often find cash back bonuses between $150-$200, though the spending requirement is typically much lower. 

Additional perks

The Blue Cash Preferred Card also offers a few ways to save on everyday purchases:

• Disney Bundle statement credit: If you're a Disney+, Hulu, and ESPN+ fan, you can save up to $84 per year with the Blue Cash Preferred Card. When you spend at least $9.99 monthly on an eligible subscription (including all three services), you'll receive a $7 monthly statement credit. You must enroll your card through the Amex Offers portal to activate this benefit.
• Amex Offers: As a cardholder, you can access a rotating selection of discounts and bonus rewards from various retailers, restaurants, travel companies, and subscription services. These offers can help you save money on purchases you plan to make. To take advantage of an offer, simply add it to your card and make the qualifying purchase.

This card also comes with several built-in safeguards for your purchases:

• Purchase protection: If an item you bought with your card is accidentally damaged or stolen, you may be eligible for a repair, replacement, or reimbursement of up to $1,000 per occurrence and $50,000 per calendar year.
• Return protection: If you try to return an item within 90 days of purchase and the merchant won't accept it, American Express may refund the full purchase price (up to $300 per item, $1,000 per year).
• Extended warranty: American Express will provide up to one additional year of coverage on eligible purchases with warranties of five years or less.

While many cash back cards offer some form of purchase protection and extended warranty coverage, the Blue Cash Preferred Card's benefits are among the most comprehensive. 

0% APR offer

The Blue Cash Preferred offers a 12-month 0% APR introductory offer on purchases and balance transfers. This means that for the first year, you can make large purchases or transfer high-interest balances without incurring interest charges. This is followed by a high variable APR of 19.24%-29.99%. 

Balance transfers must be made within the first 60 days of account opening. You must also pay a balance transfer fee of either $5 or 3% of the transferred amount, whichever is greater.

Additionally, cardholders will have access to Amex's Buy Now, Pay Later feature, called Plan It, with no fees for the first year. Plan It allows you to split large purchases into smaller, monthly installments with a fixed fee. After the first year, Plan It fees will apply, up to 1.33% of each purchase amount. (See rates and fees.)

Blue Cash Preferred fees & charges 

When evaluating the Blue Cash Preferred, you should factor in the various fees associated with this card. While some of these costs can be avoided, others cannot. 

Annual fee 

Because American Express waives this fee for the first year of card membership, you can try out the card's benefits and see if they align with your spending habits before committing.

American Express also offers a no-annual-fee version of this card, the Blue Cash Everyday® Card from American Express. While the Everyday card has a similar rewards structure, it offers lower cash back rates on bonus categories (3% at U.S. supermarkets on up to $6,000 per year, 2% at U.S. gas stations and select U.S. department stores, and 1% on other purchases). 

Consider your typical spending habits to determine whether the Blue Cash Preferred's annual fee is worth it.

For example, spending $500 monthly at U.S. supermarkets would earn $360 in cash back annually with the Blue Cash Preferred. After subtracting the annual fee, you'd still come out ahead with $265 in total cash back. You’d only earn $180 in cash back using the Blue Cash Everyday card. 

Interest rates

The Blue Cash Preferred has a typical APR range — 19.24%-29.99%, depending on your creditworthiness. If you have strong credit, you may qualify for the lower end of the range, which is the same for purchases and balance transfers. 

Paying your balance in full each month is crucial to avoid accruing interest charges. If you consistently carry a balance, the high APR can quickly negate the value of any cash back rewards you earn.

The card also has a high APR for cash advances (29.99%) and a higher penalty APR that may apply for at least six months if you make a late payment or have your payment returned.

Other fees

The Blue Cash Preferred card also charges some added fees, including: 

• Cash advance fee: $10 or 5% of the cash advance amount, whichever is greater
• Late payment fee: Up to $40
• Returned payment fee: Up to $40
• Foreign transaction fee: 2.7% 

It's important to be aware of these fees to avoid incurring unnecessary charges. For example, it's smart to avoid taking out cash advances, which come with high fees, and start accruing interest immediately. 

Similarly, try to pay at least the minimum on time each month to avoid late fees and potential damage to your credit score.

How the Blue Cash Preferred® Card from American Express compares 

To help you determine whether the Blue Cash Preferred Card best suits your needs, let's compare it to two other popular cash-back credit cards: the Capital One SavorOne Rewards Credit Card and the Citi Custom Cash® Card.

Blue Cash Preferred vs. Capital One SavorOne Rewards Credit Card

The Capital One SavorOne Rewards Card is another strong contender in the cash back credit card market. It offers unlimited 3% cash back on dining, entertainment, popular streaming services, and grocery store purchases (excluding superstores like Walmart and Target), as well as 1% cash back on all other purchases. 

Like the Blue Cash Preferred Card, the SavorOne has no annual fee and offers a comparable welcome bonus. 

While SavorOne's 3% cash back on groceries is half of what the Blue Cash Preferred Card offers, it does not have an annual spending cap in this category. Plus, the SavorOne offers cash back on dining, which the Blue Cash Preferred Card does not.

Blue Cash Preferred Card vs. Citi Custom Cash® Card

The Citi Custom Cash Card takes a unique approach to cash back rewards. It offers 5% cash back on your top eligible spend category each billing cycle (up to $500 in purchases, then 1% cash back). 

Eligible categories include restaurants, gas stations, grocery stores, select travel and transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. All other purchases earn 1% cash back.

While the 5% cash back rate on U.S. supermarkets is competitive with the Blue Cash Preferred Card's 6%, the Custom Cash Card's $500 monthly spending cap may be limiting. 

But, if your spending is more varied and you don't hit the $500 cap in any one category, the Custom Cash could offer more flexibility in earning bonus cash back.

Who should consider the Blue Cash Preferred Card credit card? 

Grocery shoppers, streamers, and commuters are all good candidates for the Blue Cash Preferred Card. If you happen to be all three, then this card is a no-brainer. 

• Grocery shoppers: If you're constantly stocking up on groceries, the Blue Cash Preferred Card is hard to beat. With an industry-leading 6% cash back at U.S. supermarkets (on up to $6,000 per year, then 1%), this card can help you earn a significant amount of cash back.
• Commuters: Whether you drive to work, take public transportation, or use ridesharing services, the Blue Cash Preferred has you covered. Cardholders earn unlimited 3% cash back on transit expenses. Plus, the card offers 3% cash back at U.S. gas stations, making it an excellent choice for those who spend a lot on fuel.
• Streaming enthusiasts: If you love streaming services like Netflix, Hulu, Disney+, or Spotify, the Blue Cash Preferred Card's 6% cash back on select U.S. streaming subscriptions can help you save money on your entertainment expenses. 
• Amazon shoppers: While the Blue Cash Preferred only offers two redemption options – statement credits and Amazon purchases – the latter can be particularly appealing for frequent Amazon shoppers. 

If you don't spend much within the bonus categories, the Blue Cash Preferred Card might not be the best fit for you. Additionally, if you're a frequent traveler or enjoy dining out, you may want to consider a card that offers rewards in those categories, as the Blue Cash Preferred Card does not provide bonus cash back for travel or restaurant purchases.

How we rated this card

Every credit card review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all credit cards on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here. 

The bottom line 

The Blue Cash Preferred is an exceptional choice for those who spend significantly on everyday expenses like groceries, gas, transit, and streaming services. With its generous cash back rates, welcome bonus, and additional perks, this card can provide significant value to the right cardholder.

You can squeeze even more value by taking advantage of the welcome bonus, Amex Offers, and the Disney Bundle statement credit. Plus, the card's introductory APR offer can be helpful if you need to make a large purchase or transfer high-interest debt from another card.

Paying your balance in full each month is crucial to truly making the most of this card and avoiding losing your rewards to interest charges. By practicing smart credit habits and aligning your spending with the card's bonus categories, you can maximize your cash back and enjoy significant savings on your everyday expenses.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.

*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