Blue Cash Preferred® Card from American Express Review
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Pros and cons
- Generous cash back rewards
- One of the most rewarding cards for U.S. supermarket purchases
- Rewards easily redeemed for statement credits
- Valuable welcome offer
- Intro APR on purchases
- Limit on higher cash back rate
- Annual fee
- Foreign transaction fee
- Limited redemption options
Is the Blue Cash Preferred® Card from American Express worth it?
The Blue Cash Preferred® Card from American Express is worth it if you spend a good amount on U.S. supermarket purchases, U.S. streaming subscriptions, transit or U.S. gas stations — all common spending categories. Once you spend about $1,580 on groceries alone, you’ll have paid for the card’s annual fee once the intro period ends.
Since this card comes with a solid earning rate and generous welcome offer, this card will likely be worth it for people looking for a cash back card that covers many of their everyday expenses.
Quick facts
- Click APPLY NOW to apply online.
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Low Intro APR: 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 20.24% - 29.24%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don’t have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you’ll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, Hulu.com, or Plus.espn.com U.S. websites. Subject to auto-renewal.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- Rates & Fees
- Recommended Credit
Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion
- Car rental loss and damage insurance
- Global Assist® Hotline when traveling more than 100 miles from home
- Return protection
- Purchase protection and extended warranty
- $84 Disney Bundle credit
- $120 Equinox+ credit (enrollment required)
- Return protection
- Access to ticket presales and exclusive events with American Express Experiences
Intro Purchase APR
0% on purchases for 12 months
Regular Purchase APR
20.24%-29.24% Variable
Intro BT APR
0% on balance transfers for 12 months
Regular BT APR
20.24%-29.24% Variable
Annual Fee
$0 intro annual fee for the first year, then $95.
Cash Advance Fee
Either $10 or 5% of the amount of each cash advance, whichever is greater.
Foreign Transaction Fee
2.7% of each transaction after conversion to US dollars.
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
What we like about the Blue Cash Preferred® Card from American Express
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Generous cash back rewards
Earn Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Note that the card’s transit and streaming categories include a large number of vendors and services:
Qualifying transit purchases Qualifying streaming purchases Trains, taxi cabs, ride-share services, ferries, tolls, parking, buses, subways Amazon Music Unlimited, Apple Music, Apple TV+, Audible, DirecTV Stream (formerly known as AT&T TV or AT&T TV now), Disney+, ESPN+, Fubo TV, HBO Max, HBO (standalone streaming subscription only, formerly known as HBONow), Hulu, iHeartRadio, Kindle Unlimited, Luminary, MLB.TV, NBA League Pass, Netflix, NHL.TV, Pandora, Peacock, Paramount+, Prime Video, Showtime, Sling TV, SiriusXM Streaming and Satellite, Spotify, Stitcher, TIDAL Music, YouTube Music Premium, YouTube Premium, YouTube TV If you max out the $6,000 spend threshold at U.S. supermarkets each year, you’ll earn $360 back annually on those purchases alone — which more than covers the card’s annual fee each year.
You receive cash back on the Blue Cash Preferred® Card from American Express in the form of reward dollars that you can redeem as a statement credit, with no minimum redemption amount.
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Valuable welcome offer
Yet another reason to give this card a try: New cardmembers earn a $250 statement credit after you spend $3,000 in eligible purchases on your new card within the first 6 months. We should note that this six months is a particularly notable benefit — in order to earn the welcome offer, most cards will require you to reach the spend threshold within just the first three months of card membership.
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Intro APR on purchases
If you need to finance a big purchase, it’s helpful that the Blue Cash Preferred® Card from American Express offers an intro APR of 0% on purchases for 12 months. After, a 20.24%-29.24% variable APR applies.
Not every card offers an intro APR, so this can be a big pro for people that may not be able to pay off an entire balance right away. Its intro APR period is on the low end, however, as there are cards with 0% intro APRs for as long as 21 months.
What to look out for with the Blue Cash Preferred® Card from American Express
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Limit on higher cash back rate
After you spend $6,000 at U.S. supermarkets, the cash back you earn on the Blue Cash Preferred® Card from American Express for that category drops from 6% to 1% for the rest of the year.
Despite there being a cash back cap, it’s still a quite generous one. The average American spends $5,259 on groceries each year, according to 2022 data from the Bureau of Labor Statistics — so the cap is a bit above that.
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Annual fee
This card charges an annual fee of $0 intro annual fee for the first year, then $95. If you spend $1,585 on purchases eligible for 6% cash back, you’ll earn enough to recoup amount of the annual fee.
However, if you don’t spend enough in the cash back categories to make the annual fee worth it, you may prefer the Blue Cash Everyday® Card from American Express, which also earns rewards on purchases at U.S. supermarkets (though at a lower rate) and has a $0 annual fee.
*To see rates & fees for Blue Cash Preferred® Card from American Express, please click here.*To see rates & fees for Blue Cash Everyday® Card from American Express, please click here. -
Foreign transaction fee
When traveling abroad, it’s better to leave this card at home, because there’s a foreign transaction fee of 2.7% of each transaction after conversion to US dollars. Many cards that offer annual fees don’t charge foreign transaction fees, so this is an uncommon exception.
*To see rates & fees for Blue Cash Preferred® Card from American Express, please click here. -
Limited redemption options
With the Blue Cash Preferred® Card from American Express, you can only redeem your cash back as a statement credit. Some other cash back cards offer more flexibility with redemption options.
For example, the Discover it® Cash Back allows you to redeem your rewards for cash (a deposit into your bank account), PayPal and Amazon rewards, gift cards and charitable donations, on top of statement credits. The Wells Fargo Active Cash® Card lets you use cash back to offset recent purchases, withdraw from ATMs in $20 increments, gift cards and qualifying Wells Fargo checking accounts and mortgages — also on top of statement credits.
Alternate cash back card to the Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express vs. Blue Cash Everyday® Card from American Express
The Blue Cash Everyday® Card from American Express may be better if you don’t want to deal with an annual fee. It’s basically a toned-down version of the Blue Cash Preferred® Card from American Express: You can earn Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout. Like the Blue Cash Preferred® Card from American Express, your rewards are redeemable for statement credits.
It’s a better option if you’re looking for an intro APR on purchases or balance transfers. It offers an intro APR of 0% on purchases for 15 months, then a 20.24%-29.24% Variable APR. It also offers an intro APR of 0% on balance transfers for 15 months, then a 20.24%-29.24% Variable APR.
But if groceries is a heavy spending category for you, then you may be better off with the Blue Cash Preferred® Card from American Express despite the annual fee.
Blue Cash Preferred® Card from American Express vs.
If a card that rewards dining and entertainment, as well as grocery store purchases, is more your speed, the could be a better fit for your needs.
It’s a better option for foodies than the Blue Cash Preferred® Card from American Express, since it offers a bonus on both restaurants and grocery stores. You can earn .
The also lets you earn . You can redeem your cash back for a larger variety of options, including statement credits, checks, credits toward previous purchases, and gift cards, or to shop online with PayPal using the PayPal Pay with Rewards feature.
Blue Cash Preferred® Card from American Express vs. Discover it® Cash Back
If you don’t want to pay an annual fee and would rather earn bonus rewards in a variety of categories that change each quarter, then the Discover it® Cash Back might be right for you. It lets you 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
This card also offers its unique Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. This could be valuable if you’re a heavy spender, since you can earn a larger bonus by spending more.
However, the Discover it® Cash Back‘s categories change each quarter and may not always match up with your spending. If you spend heavily at U.S. supermarkets all year long instead of just one quarter, then the Blue Cash Preferred® Card from American Express is likely a better fit.
Compare the Blue Cash Preferred® Card from American Express to similar cards
| Credit Cards | Our Ratings | Annual Fee | Welcome Offer | Rewards Rate | Recommended Credit Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion | |
|---|---|---|---|---|---|---|
Blue Cash Preferred® Card from American Express
|
$0 intro annual fee for the first year, then $95. | Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. | Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout. | Good / Excellent | ||
Blue Cash Everyday® Card from American Express
|
$0 | Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. | Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout. | Good / Excellent | ||
Discover it® Cash Back
 Apply Now
on Discover's secure site Rates & Fees |
$0 | Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. | 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically | Good / Excellent |
Apply Now
on Discover's secure site Rates & Fees |
Is the Blue Cash Preferred® Card from American Express right for you?
The Blue Cash Preferred® Card from American Express offers one of the most generous cash back rewards around for purchases in the supermarket category. In addition, it’s a great choice for commuters — whether you travel by train, bus, or car — thanks to its transit and gas rewards. Just do the math and make sure you spend enough in the cash back categories to recoup the annual fee after the first year of having this card.
If you can’t match the annual fee, then a no-annual-fee grocery credit card may be the better way to go.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
To see rates & fees for American Express cards mentioned on this page, visit the links provided below:
The information related to the Wells Fargo Active Cash® Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
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