Blue Cash Preferred Card from American Express 2021 Review

While the Blue Cash Preferred Card from American Express earns high rewards on everyday spending, the Chase Sapphire Preferred Card can be a good pick for travel and dining. With the Blue Cash Preferred Card from American Express, you can earn rewards including 6% cash back on up to $6,000 in U.S. supermarket purchases each calendar year and 6% cash back on certain U.S. streaming service subscriptions. Rewards with the Chase Sapphire Preferred Card include five points per dollar when you book travel with Chase Ultimate Rewards and three points per dollar on dining.

The Chase Sapphire Preferred Card comes with a $95 annual fee, while the Blue Cash Preferred Card from American Express has a $0 introductory annual fee for the first year, then $95.. You won’t get a 0% introductory APR with the Chase Sapphire Preferred Card, while the Blue Cash Preferred Card from American Express offers a 0% APR on purchases for one year.

Foreign transactions will cost less with the Chase Sapphire Preferred Card, which does not charge a foreign transaction fee. With the Blue Cash Preferred Card from American Express, you’ll pay a 2.7% fee on foreign transactions after they are converted to U.S. dollars.

Both the Chase Freedom Flex and the Blue Cash Preferred Card from American Express are highly rated cash back credit cards. The Chase Freedom Flex’s maximum rewards rate is 5%, while the Blue Cash Preferred Card from American Express earns 6% back in select categories. The Blue Cash Preferred Card from American Express’s welcome offer is worth up to $350, while new members can earn a $200 bonus with the Chase Freedom Flex.

You won’t have to pay an annual fee with the Chase Freedom Flex, while the Blue Cash Preferred Card from American Express has a $0 introductory annual fee for the first year, then $95. Both cards offer a 0% introductory APR on purchases, but the Chase Freedom Flex’s introductory period lasts 15 months, three months longer than the Blue Cash Preferred Card from American Express’s.

Both cards offer benefits such as car rental protection, travel assistance services and protection against fraudulent purchases. With the Blue Cash Preferred Card from American Express you’ll also have access to entertainment options through American Express Experiences. You’ll need good to excellent credit to qualify for either card.

The Blue Cash Preferred Card from American Express and the Blue Cash Everyday Card from American Express come with similarly structured rewards programs. Both cards earn extra cash back on up to $6,000 in spending at supermarkets in the U.S. each calendar year, for example, but the Blue Cash Preferred Card from American Express earns 6% back while the Blue Cash Everyday Card from American Express earns 3%.

You won’t pay an annual fee with the Blue Cash Everyday Card from American Express, while the Blue Cash Preferred Card from American Express has a $0 introductory annual fee for the first year, then $95. Both cards offer a 0% introductory APR on purchases. The promotion lasts 15 months with Blue Cash Everyday Card from American Express and 12 months with the Blue Cash Preferred Card from American Express.

The Blue Cash Preferred Card from American Express’s welcome offer is worth up to $350, while the Blue Cash Everyday Card from American Express has a welcome offer worth up to $250.

Approximate annual rewards value: $483

First-year rewards value: $833

These are the rewards you can earn with this card:

This rewards structure can be great if you spend a lot in the high-earning categories, but the rewards category restrictions can make it less appealing.

If you do the majority of your grocery shopping at superstores or warehouse clubs, you won’t benefit as much from the 6% cash back at grocery stores, as these don’t count as supermarkets. If you reach the $6,000 limit on this reward category, you’ll earn just 1% cash back for the rest of the calendar year.

Similarly, if your U.S. streaming service is bundled with another product or billed through a third party, you may not qualify for the 6% cash back reward, and airfare, car rentals and cruises are not eligible for the 3% transit reward.

It’s also worth noting that supermarket and gas station rewards only apply to purchases made within the U.S. Outside the U.S., purchases incur the 2.7% foreign transaction fee.

You can earn 20% back on Amazon.com purchases in the first 6 months of Card Membership, up to $200 back. Plus, earn $150 back after you spend $3,000 in purchases on the Card within the first 6 months of Card Membership, which is competitive for a cash back card.

How much you can earn with the Blue Cash Preferred Card from American Express will depend on how much you spend in the rewards categories. Based on average spending data from the U.S. Bureau of Labor Statistics and analysis on streaming service and public transit expenditures, Blue Cash Preferred Card users can earn about $833 in their first year. In subsequent years, you can expect to earn closer to $400 in cash back after netting the annual fee.

Values for each spending category are based on average data from the 2019 U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. Most categories are rounded to the nearest $100.

Cash back rewards on the Blue Cash Preferred Card from American Express are redeemable as statement credits. AmEx may occasionally offer other redemption options, such as gift cards or merchandise, at its discretion. You can redeem rewards whenever your reward balance is $25 or more. Rewards cannot be used to make your minimum payment.

The Blue Cash Preferred Card from American Express offers a 0% introductory APR on purchases, so you’ll pay no interest on purchases for 12 months. After that, you’ll have an APR of 13.99% – 23.99% Variable, depending on your creditworthiness and other considerations.

If you need to spread out payments over time after the promotional period ends, you can consider the card’s Pay It Plan It feature. With Pay It, you can quickly tap in the mobile app for a purchase that is less than $100 to make payments throughout the month. In contrast, Plan It lets you select purchases that are $100 or more and split them into monthly payments for a fixed monthly fee. This can be a good deal if the monthly fee is less than you would pay in interest. Of course, an even better strategy would be to pay off your balance in full every month so you never have to pay more for your purchases.

For rates and fees of the Blue Cash Preferred Card, please click here

Q: Is the Blue Cash Preferred Card from American Express worth it?

A: The Blue Cash Preferred Card from American Express has a $0 introductory annual fee for the first year, then $95. To make the card worth the fee after the first year, you’d need to earn more than $95 in rewards. The best way to decide if a credit card is worth it is to do the math based on your spending history. Calculate how much you expect to earn in cash back, subtracting the annual fee, then compare that to how much you’d earn on a comparable card with no annual fee.

Q: Is the Blue Cash Preferred Card from American Express a charge card?

A: The Blue Cash Preferred Card from American Express is not a charge card. Cardholders are not required to pay the full balance each billing payment, but you will be charged interest on any remaining balance at an APR of 13.99% – 23.99% Variable.

A: The Blue Cash Everyday Card from American Express offers lower rewards than the Blue Cash Preferred Card from American Express, but does not charge an annual fee. With the Blue Cash Preferred Card from American Express you pay a $0 introductory annual fee for the first year, then $95.(See Rates & Fees) You’ll get 6% back on up to $6,000 in spending at supermarkets in the U.S. each calendar year, 6% back on eligible U.S. streaming services, 3% back on eligible transit, 3% back on gasoline purchases at gas stations in the U.S., and 1% back on all other purchases. The Blue Cash Everyday Card from American Express has no annual fee but only gives 3% back on up to $6,000 in spending at supermarkets in the U.S. each calendar year, 2% back on gasoline purchases at gas stations in the U.S. and at select department stores in the U.S., and 1% cash back on all other purchases. If you won’t be able to earn at least $95 more in rewards with the Blue Cash Preferred Card from American Express than you would with the Everyday Card, the Everyday Card may be a better choice for you.

Q: Is the Blue Cash Preferred Card from American Express a good credit card?

A: At 6% cash back, the Blue Cash Preferred Card from American Express earns a higher rate of rewards in its highest bonus categories than many other top cash back cards do. If you spend a lot on eligible groceries or streaming services, or on purchases in the card’s 3% rewards categories, this card could be well worth the annual fee. Plus, American Express is known for its customer service.