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Amex Blue Cash Preferred Review: Worth the Annual Fee for Families
This card is great for families thanks to its exceptional cash back rates on groceries, streaming services and gas. We score it a 4.3 out of 5 as a cash back card and give it a 5 out of 5 for grocery rewards.
Doug Milnes, CFA
Head of Credit Cards at MoneyGeek
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets. Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
Casie McCoskey
Content Editor
Casie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
Doug Milnes, CFA
Head of Credit Cards at MoneyGeek
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets. Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
Casie McCoskey
Content Editor
Casie McCoskey is a professional editor passionate about providing people with accessible information on personal finance. Before MoneyGeek, she worked in the legal field, drafting and editing briefs and motions.
Updated: October 8, 2024
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- PROS
- High cash back on supermarkets and streaming
- Unlimited cash back on gas and transit
- Intro APR for purchases and transfers
CONS- Annual fee after first year
- Spending caps and exclusions on supermarket purchases
Introductory Offer Details
- Enjoy a $0 intro annual fee for the first year, then $95 after that.
- Earn a $250 statement credit after spending $3,000 on eligible purchases within the first six months.
- Benefit from 0% intro APR on purchases and balance transfers for 12 months from account opening. After that, a variable APR of 18.74% to 29.74% applies.
Cash Back Details
- Earn 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 at U.S. gas stations.
- Earn 3% cash back on transit, including taxis/rideshares, parking, tolls, trains, buses and more.
- 1% cash back on all other purchases.
- Cash back is provided as Reward Dollars, redeemable as a statement credit or at Amazon.com checkout.
Other Benefits
- Earn a $84 Disney Bundle Credit: Spend $9.99 or more each month on an auto-renewing Disney Bundle subscription with your enrolled Blue Cash Preferred Card to receive a $7 monthly statement credit. Valid only at DisneyPlus.com, Hulu.com or Plus.espn.com in the U.S.
- Terms apply.
- See rates and fees
Is the Blue Cash Preferred Card Worth It?
Yes, the Blue Cash Preferred® Card from American Express is worth it if you’re looking for a family-friendly card with high cash back on everyday purchases. It offers high cash back on U.S. supermarkets, select streaming services, U.S. gas stations and transit. Its 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (1% after that) is hard to beat. This is despite the spending limits and the $95 annual fee that kicks in after the first year. You can use our Blue Cash Preferred cash back calculator to assess whether the cash back is worth the annual fee based on your spending habits.
We rate the card a 4.3 out of 5 for cash back cards, and it is the best grocery rewards credit card in our rankings (earning a 5 out of 5).
If you compare the Blue Cash Preferred to the Blue Cash Everyday® Card from American Express, the no-annual-fee version with lower cash back rates, the Blue Cash Preferred is worth it if you spend more than $60 a week at eligible U.S. supermarkets. However, one notable benefit of the Blue Cash Everyday is its bonus cash back category for U.S. online retail purchases, which the Blue Cash Preferred doesn't offer.
Blue Cash Preferred Cash Back Rewards
The Blue Cash Preferred offers a tiered cash back rewards program with high cash back on popular spending categories. We rate the Blue Cash Preferred a 4.3 out of 5 for the effective rewards rates on the strength of its bonus cash back categories.
Cardholders earn 6% back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. The 6% back also applies to select U.S. streaming subscriptions. It offers 3% cash back at U.S. gas stations and on transit expenses, including taxis and rideshares. All other eligible purchases earn the base 1% cash back rate.
Here’s how American Express defines Blue Cash Preferred®’s categories:
Category | Details |
---|---|
U.S. Supermarkets | Includes purchases at supermarkets located in the U.S., but excludes superstores, convenience stores, warehouse clubs and meal-kit delivery service. |
U.S. Streaming | Applies to purchases from select U.S. streaming subscription services such as Netflix, Disney+, Apple Music, MAX and YouTube Premium, among several others. The full list of qualifying providers is available on Amex’s website. |
Transit | Includes purchases related to transit, including trains, taxicabs, rideshare services, ferries, tolls, parking, buses and subways. Excludes airfare, car rentals or cruises. |
U.S. Gas stations | Applies to purchases of gasoline at gas stations located in the U.S. Does not include fuel purchases at superstores, supermarkets and warehouse clubs that also sell gasoline. |
The cash back you earn from the Blue Cash Preferred® Card is in the form of Reward Dollars, which you can redeem as a statement credit or use to pay for eligible items at Amazon.com. Rewards never expire and can be redeemed for any amount.
Are the Blue Cash Preferred Cash Back Rates Worth the Annual Fee?
Blue Cash Preferred Cash Back Calculator
Estimate the value of the cash back you could earn with the Blue Cash Preferred to see if the annual fee would be worth it. Input your spending in different categories and see how much cash back you can earn.
Important Disclaimers:
- This calculator is for planning and evaluation purposes and is not sponsored or endorsed by American Express.
- Some of your purchases may not be eligible for earning points.
How much do you spend at U.S. supermarkets per MONTH up to $500 ? (6% cash back up to $6,000/year)
How much do you spend at U.S. supermarkets per MONTH beyond $500? (1% cash back)
How much do you spend on U.S. streaming subscriptions per MONTH? (6%)
How much do you spend at U.S. gas stations per MONTH? (3%)
How much do you spend on transit per MONTH? (3%)
How much will you spend on other purchases per MONTH? (1%)
Blue Cash Preferred Introductory Offers
The Blue Cash Preferred's introductory offers are decent — however, many other cash back cards score higher in these categories. The card's value lies in its enhanced cash back categories.
Welcome Bonus: Earn a $250 statement credit after spending $3,000 on eligible purchases within the first six months. Due to the high spending requirement, we rate this offer as a 1 out of 5.
0% APR Intro: Enjoy a 0% intro APR on purchases and balance transfers for 12 months from account opening. After that, the card's regular variable APR of 18.74% to 29.74% applies. We rate the intro purchase APR offer a 2 out of 5 and the balance transfer offer inclusive of the balance transfer fees a 2.8 out of 5.
Annual Fees and Costs of Blue Cash Preferred
Like most cards, the Blue Cash Preferred's fees and interest rates can be demanding. It's wise to stay on top of your balances and avoid late payments if you want to maximize your cash back.
Here's the rundown on the Blue Cash Preferred's fees and charges:
- $95 annual fee, waived for the first year. While no annual fee is preferable, the card's high cash back rates on groceries and streaming services justify the cost.
- The variable regular APR of 18.74% to 29.74% is, unfortunately, competitive with other rewards cards.
- 3% of the amount of each balance transfer, or $5, whichever is greater. Most rewards cards or cards offering an introductory 0% APR charge 3% or 5%, so Blue Cash Preferred's balance transfer fees are competitive.
- Up to $40 in late fees and imposes a penalty APR of up to 29.99% for late payments. While not uncommon for a reward card, this is the most punitive structure for late payment fees and negatively impacts how we rate the card.
- The 2.7% foreign transaction fee and the lack of bonus categories for travel-related purchases like dining and flights make this card less ideal for frequent travelers.
How Blue Cash Preferred Compares
Despite its attractive rewards, the Blue Cash Preferred® Card from American Express has a few drawbacks to consider. The annual fee, lack of travel rewards and grocery spending cap are key areas where other cards may offer better options. We compare the Blue Cash Preferred with other cash back cards to help you find the best one for your needs.
Blue Cash Preferred vs. Blue Cash Everyday
The Blue Cash Everyday® Card from American Express is the no-annual-fee downgrade from the Blue Cash Preferred. It offers 3% cash back at U.S. supermarkets, U.S. online retail and U.S. gas stations (up to $6,000 per year for each category, then 1%; terms apply). The Blue Cash Everyday has lower rates and more spending caps on cash back categories similar to the Blue Cash Preferred, except for U.S. online retail. If you're spending enough on groceries, the upgrade from Blue Cash Everyday to Blue Cash Preferred is worth it.
Check out our full head-to-head review: Blue Cash Preferred Card from American Express vs. Blue Cash Everyday Card from American Express
Blue Cash Preferred vs. Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card offers 3% cash back on dining, entertainment and grocery stores with no spend caps and no annual fee. If you’re looking for unlimited cash back on categories that the Blue Cash Preferred® doesn’t cover, the SavorOne is a strong choice.
Check out our full head-to-head review: Blue Cash Preferred Card from American Express vs. Capital One SavorOne Cash Rewards Credit Card
Blue Cash Preferred vs. American Express® Gold Card
The American Express® Gold Card is designed for high-spending consumers who want to earn rewards for grocery and travel spending. The Gold Card earns Membership Rewards® points, which are usually best redeemed with travel partners, often at rates above 1 cent.
For grocery rewards, the Gold Card offers 4X points at U.S. supermarkets (up to $25,000 per year, then 1X), which can be more lucrative than the Blue Cash Preferred's rewards because of the $6,000 per year spending cap. The Gold Card's other bonus rewards earning categories are 4X at restaurants worldwide (up to $50,000 per year, then 1X), 3X on flights and 2X on prepaid hotels. Combined with no foreign transaction fees, it's the stronger card for travel expenses.
For all these additional rewards, the American Express® Gold Card's annual fee is $325, compared to the Blue Cash Preferred's $0 intro annual fee for the first year and then $95. While they are both great cards, the Gold Card is designed for consumers who spend a lot more.
All Blue Cash Preferred Card Comparisons
- Blue Cash Preferred Card from American Express vs. Capital One QuicksilverOne Cash Rewards Credit Card
- Blue Cash Preferred Card from American Express vs. Bank of America Unlimited Cash Rewards Credit Card
- Blue Cash Preferred Card from American Express vs. Discover it Cash Back Card
- Blue Cash Preferred Card from American Express vs. Citi Double Cash Card
- Blue Cash Preferred Card from American Express vs. US Bank Cash Visa Signature Card
- Blue Cash Preferred Card from American Express vs. Chase Freedom Flex Card
- Blue Cash Preferred Card from American Express vs. Wells Fargo Active Cash Card
- Blue Cash Preferred Card from American Express vs. Chase Freedom Unlimited
- Blue Cash Preferred Card from American Express vs. Citi Custom Cash Card
Cards to Pair With the Blue Cash Preferred® Card
Pairing the Blue Cash Preferred® Card from American Express with a flat-rate cash back card can be a smart move. The Blue Cash Preferred® offers high rewards in categories like U.S. supermarkets, U.S. gas stations and transit (terms apply), while a flat-rate card can complement it by providing consistent rewards on your other purchases.
For this strategy, we recommend finding a card with no annual fee and a base cash back rate higher than Blue Cash Preferred’s 1%. The Capital One Quicksilver Cash Rewards Credit Card fits the bill, offering unlimited 1.5% cash back on all purchases and no annual fee.
Additionally, because the Blue Cash Preferred® provides exceptional cash back at U.S. supermarkets and U.S. gas stations, you can pair it with a card that offers high cash back on your other high-spend categories. If eating out and entertainment make up a significant part of your budget (on top of groceries and gas), the Capital One SavorOne Cash Rewards can work well with the Blue Cash Preferred®.
Is Blue Cash Preferred® Cash Back Right for You?
The Blue Cash Preferred® Card from American Express is a prime pick for families who frequently spend on groceries, streaming services and gas. Its 6% cash back at supermarkets is difficult to match, and with just this category, you can still gain substantial cash back even after you account for the $95 annual fee.
However, if your spending in the Blue Cash Preferred®’s bonus categories is low or you're averse to paying an annual fee, this card might not be the best fit.
Want to see cash back cards besides the Blue Cash Preferred®? Check out our list of the best cash back credit cards so you can make an informed decision when getting a card.
Getting the Blue Cash Preferred Card
To apply for the Blue Cash Preferred, you'll need a good to excellent credit score, typically in the range of 670 or higher. The higher credit score requirement is consistent with other cash back cards but does negatively impact how we rate the card overall.
Like other credit cards, approval odds are generally favorable if you have a solid credit history with timely payments and low credit utilization. Other factors like your income, existing debt and whether you already have an Amex card may influence approval.
Amex's current approval process lets you avoid a hard credit pull through a pre-approval process. Fill in your application, and Amex will let you know if you're approved. If you decide to accept the card, then Amex will make a hard credit inquiry.
How We Evaluated the Blue Cash Preferred® Card
The Blue Cash Preferred® Card from American Express was evaluated against a set of criteria reflecting the card's value to consumers. The evaluation process included 60 cards and considered the following weighted factors, listed from highest to lowest percentage:
- Effective Reward Rate (50%): Measures the cash back or rewards earning rate.
- Balance Transfer Offer (10%): Assesses the terms of balance transfer options.
- Annual Fee (10%): Considers the cost of the card's annual fee.
- Issuer Satisfaction (5%): Based on customer satisfaction with the card issuer.
- Penalties (5%): Evaluates the severity of penalty fees and rates.
- Regular APR (5%): Examines the long-term interest rate for balances.
- Foreign Transaction (5%): Considers fees for international transactions.
- Intro Purchase (5%): Rates the introductory 0% APR offer on purchases.
- Recommended Credit (5%): Reflects the card's accessibility to various credit scores.
These factors were carefully weighed to determine the card's overall Cash Back Score.
Blue Cash Preferred Card Details
Features | Details |
---|---|
Card Uses |
|
Annual Fee | $0 intro annual fee for the first year, then $95 |
Introductory Offer | Earn a $250 statement credit after spending $3,000 in the first six months. Terms apply. |
Introductory APRs | 0% intro APR on purchases and balance transfers for 12 months, then a variable APR of 18.74% to 29.74% after that |
Rewards |
|
Regular APRs | 18.74% to 29.74% variable |
Penalty APR | 29.99% variable. See rates and fees. |
Balance Transfer Fees | Either $5 or 3% of the amount of each transfer, whichever is greater. See rates and fees. |
Late Fees | Up to $40. See rates and fees. |
Foreign Transaction Fee | 2.7% of each transaction after conversion to U.S. dollars. See rates and fees. |
Other Perks |
|
For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.
For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
sources
- American Express. "Blue Cash Everyday® Card." Accessed October 8, 2024.
- American Express. "Blue Cash Preferred® Card." Accessed October 8, 2024.
- Capital One. "Quicksilver from Capital One." Accessed October 8, 2024.
- Capital One. "SavorOne Rewards from Capital One." Accessed October 8, 2024.
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