If you’re a savvy spender focused on maximizing returns on daily expenses like groceries, gas, and streaming services, the Blue Cash Preferred® Card from American Express could be your financial powerhouse.
With its high rewards rates in everyday categories and beneficial perks for families and commuters, it presents a compelling case despite its annual fee.
$0 intro annual fee for the first year, then $95
1%-6%
$250
Excellent/Good (690 – 850)
CreditFinder’s Rating: 4.9/5
Blue Cash Preferred® Card from American Express Overview
Recognized widely for its exceptional cash back rates at U.S. supermarkets, the Blue Cash Preferred® Card offers a versatile financial tool for anyone looking to maximize their spending on groceries and household needs. However, its benefits extend far beyond the kitchen, offering substantial returns on gas, transit, and select streaming services.
Key Features and Benefits
- Annual Fee: $0 intro annual fee for the first year, then $95.
- Welcome Offer: Earn a $250 statement credit after spending $3,000 in purchases within the first six months.
- Cash Back Rewards: Earn 6% at U.S. supermarkets (on up to $6,000 per year, then 1%), 6% on select U.S. streaming subscriptions, 3% at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), and 1% on other purchases.
- Intro APR: 0% on purchases and balance transfers for 12 months, then a variable APR of 19.24% to 29.99%.
- Additional Perks: Includes return protection, car rental loss and damage insurance, a global assist hotline, and exclusive access to ticket presales and cardholder-only events.
Detailed Reward Structure
The Blue Cash Preferred® Card from American Express shines with its reward structure, especially at U.S. supermarkets and for streaming services, making it an invaluable card for everyday family life. With 6% cash back on supermarket purchases (up to $6,000 annually) and unlimited 6% back on services like Netflix and Spotify, it covers significant ground. The added 3% return on transit and gas extends its utility to commuters, enhancing its value proposition further.
Why Consider the Blue Cash Preferred® Card?
For Families and Everyday Spenders: The card’s high reward rates at supermarkets make it ideal for families and anyone spending a significant portion on groceries and household items. The inclusion of streaming services and gas stations as high-reward categories adds versatility, appealing to a broad range of consumers.
For Commuters: With 3% cash back on transit, which includes a wide variety of transportation modes from taxis to trains, it’s also a strong candidate for those with daily commuting costs.
Comparing Costs and Benefits
Despite the $95 annual fee after the first year, the card’s benefits can offset the cost for those who take full advantage of the reward categories. For instance, spending $3,200 annually at U.S. supermarkets at 6% cash back alone would cover the fee in rewards.
Potential Drawbacks
The Blue Cash Preferred® Card is less appealing to those who don’t spend heavily in its bonus categories or who primarily shop at superstores and wholesale clubs that aren’t categorized as supermarkets by American Express.
Comparison With Other Cash Back Cards
When compared to other top cash back cards like the Citi® Double Cash Card, which offers up to 2% cash back on all purchases (1% when you buy and 1% as you pay), the Blue Cash Preferred® offers a higher return rate but with category restrictions and an annual fee. The choice between the cards depends on your specific spending habits.
Who Should Get the Blue Cash Preferred® Card?
Supermarket Shoppers: Those who spend a significant amount at U.S. supermarkets will find the 6% cash back highly rewarding. Family Budget Managers: Families looking to maximize returns on routine household spending will benefit across multiple categories. Regular Commuters: Individuals who spend regularly on gas and public transit will appreciate the 3% cash back in these categories. Streaming Enthusiasts: With 6% back on select U.S. streaming subscriptions, this card is perfect for anyone with subscriptions to services like Netflix, Hulu, or Spotify.
Conclusion
The Blue Cash Preferred® Card from American Express offers compelling value for a wide range of consumers, especially those who can maximize the benefits offered by its focused reward categories. Its annual fee is justifiable through generous cash back rates and additional cardholder benefits, making it a top contender for anyone looking to earn substantial rewards on their everyday spending.
