Blue Cash Preferred® Review: Outstanding Cash Back for Families

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

If you’re looking for a family-friendly card, the Blue Cash Preferred® Card from American Express offers high cash back on U.S. supermarkets, U.S. gas stations, and transit. Its 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%) is hard to beat, despite the spending limits and the annual fee after the first year. This card can be very lucrative if you spend at least $132 per month on supermarket purchases.

The Blue Cash Preferred® Card from American Express is an outstanding option for those who spend heavily on groceries and gas. Offering an impressive 6% cash back at U.S. supermarkets (on up to $6,000 annually, then 1%) and U.S. streaming services, plus 3% cash back at U.S. gas stations and on transit, this card aligns with the spending habits of a modern household.

Additionally, the card features a 0% intro APR on purchases and balance transfers for 12 months, then a variable APR of 19.24% - 29.99% after that, providing new cardholders with financial flexibility for managing debt or making significant purchases.

Although there is no annual fee in the first year, this card requires a $95 fee in the second year. However, the potential cash back you earn from this card remains substantial: spending $132 monthly at U.S. supermarkets can offset the annual fee, and all other eligible purchases earn cash back that goes towards your savings.

If your spending is not enough to justify the annual fee but you still want a high rate of rewards for groceries and gas, consider the more budget-friendly Blue Cash Everyday® Card from American Express as an alternative.

>> MORE: MoneyGeek's Best Cash Back Credit Cards

The Blue Cash Preferred® Card from American Express offers a tiered cash back rewards program that offers high cash back on popular spending categories.

Cardholders earn 6% back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%, and 6% back also applies to select U.S. streaming subscriptions. It also 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:

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.

The Blue Cash Preferred® Card from American Express excels in rewarding your family’s daily expenses.

Supermarket Cash Back: It’s rare to find a card offering 6% cash back at U.S. supermarkets. Despite the $6,000 annual spending limit, you can still earn up to $360 if you hit that cap, which not only covers the $95 annual fee but also leaves you with a significant chunk of change.

High Cash Back on Streaming, Gas and Transit: The same impressive 6% cash back applies to select streaming providers. Moreover, the card also provides unlimited 3% cash back at U.S. gas stations and transit purchases. You’d be hard-pressed to find another card that matches these rates.

Intro APR Period: The card offers a 0% intro APR on purchases and balance transfers for the first 12 months. This provides a buffer for big-ticket items or to manage existing debt without the added burden of interest.

Welcome Offer: The card provides a $250 statement credit after you spend $3,000 in the first six months. It’s effectively an 8% discount on your purchases. You can also consider it as two-year's worth of the annual fee.

Despite its attractive rewards, the Blue Cash Preferred® Card from American Express has a few drawbacks to consider before applying.

Annual Fee: After the first year, you'll pay a $95 annual fee. One way of thinking of it is the first $1,584 you spend at supermarkets (or the first $3,167 you spend at gas stations and on transit) goes toward breaking even from the annual fee. If your spending doesn’t reach these amounts but you still want big cash back at supermarkets and gas stations, the Blue Cash Everyday® card is a no-annual-fee option.

Spending Caps on U.S. Supermarkets: The 6% cash back at U.S. supermarkets is limited to $6,000 yearly. If your weekly grocery bill exceeds $115, you'll hit the cap quickly and drop to the base cash back rate. Additionally, superstores like Walmart and Costco are excluded from this category and only get 1% cash back. This may limit the rewards you can earn, especially during the end-of-year holidays.

It's worth noting that most cards offering 5% to 6% cash back on groceries usually have a spending cap of $6,000 per year. Nonetheless, the Capital One SavorOne Cash Rewards Credit Card offers unlimited 3% cash back on groceries, but that rate is half of the 6% you get from the Blue Cash Preferred®.

We compare the Blue Cash Preferred® with other cash back cards to help you find the best one for your needs.

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 that’s higher than 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®.

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.

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%): Looks at 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.

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.