Blue Cash Preferred® Card from American Express 2024: While many cash back credit cards provide bonus rewards on groceries, the Blue Cash Preferred® Card from American Express stands out with its exceptional offerings. Cardholders can enjoy an impressive 6% cash back on up to $6,000 of annual spending at U.S. supermarkets and select U.S. streaming subscriptions. Additionally, users earn 3% cash back at U.S. gas stations and on transit purchases, along with 1% cash back on all other purchases.
These elevated earning rates make the card a formidable contender for maximizing rewards on both everyday spending and bills. Although there is an annual fee of $95 after the first year, the introductory annual fee is $0, providing cardholders with a waived fee for the initial year.
With its stellar bonus earning rates, the Blue Cash Preferred® Card from American Express offers a swift way to maximize rewards on everyday spending and bills. However, its potential is constrained by reward caps, particularly in grocery spending. The 6% cash back on up to $6,000 in annual spending at U.S. supermarkets (then 1% back) translates to just $500 in monthly expenditure on food and household supplies. This limit may prove restrictive for many families who typically spend more over a 12-month period.
Once the bonus maximums are reached, the standard rewards rate of 1% cash back becomes relatively underwhelming. Nonetheless, the bonus rewards on U.S. gas station and transit purchases, alongside the card’s welcome bonus and additional benefits like the annual $84 Disney Bundle credit, can provide supplementary value.
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Blue Cash Preferred® Card from American Express: Pros & cons
Pros:
- High rewards rate for eligible supermarket, streaming subscription, and gas station purchases in the U.S.
- Introductory APR offer
- Generous welcome bonus
- Annual Disney Bundle credit
- Purchase and return protection on eligible purchases for cardholders
Cons:
- Bonus earning rate of 6% on groceries capped at $6,000 annual spend
- Introductory APR offer duration shorter compared to other cash back credit cards
- Foreign transaction fees apply
- Approval requires good-to-excellent credit
- Annual fee of $0 for the first year, then $95 thereafter
- Limited redemption options for rewards
Who is the card for?
The Blue Cash Preferred® Card from American Express caters primarily to families with substantial grocery and gasoline expenses. However, due to its requirement for good-to-excellent credit, not everyone may qualify for this card.
For those seeking an appealing welcome bonus, the Blue Cash Preferred® Card from American Express delivers. New cardholders can earn a $250 statement credit after spending $3,000 on purchases within the first 6 months. Meeting this requirement and maximizing spending in the 6% cash back categories can yield significant rewards. Moreover, the welcome offer includes a waiver of the $0 intro annual fee for the first year, followed by a $95 annual fee.
Notably, the 6% earning rate on select U.S. streaming subscriptions presents an attractive opportunity, given the multitude of eligible platforms included. American Express provides a comprehensive list of eligible streaming services on its website, encompassing options such as Amazon Music Unlimited, Apple Music, Disney+, Hulu, Kindle Unlimited, Netflix, YouTube Premium, YouTube TV, and more.
However, it’s essential to acknowledge that the Blue Cash Preferred® Card from American Express offers fewer redemption alternatives compared to many rival cards. Reward Dollars are the sole redemption option, limited to statement credits.
Features Blue Cash Preferred® Card from American Express 2024
The Blue Cash Preferred® Card from American Express offers additional benefits that enhance its overall value:
- $84 Disney Bundle Credit: Cardholders receive a $7 monthly statement credit when using their card to purchase a monthly subscription (auto-renewing) of $9.99 or more to the Disney Bundle, or any other monthly subscriptions or add-ons bought at DisneyPlus.com, Hulu.com, or Plus.espn.com in the U.S.
- Global Assist Hotline: Cardholders have access to this hotline for emergency assistance, including medical or legal referrals, translation services, and more.
- Introductory APR: Cardholders enjoy a 0% APR on purchases for the first 12 months, followed by a variable APR ranging from 19.24% to 29.99%.
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The Blue Cash Preferred® Card from American Express entails a standard array of potential fees and charges, which include:
- Balance Transfers: While a 0% introductory APR offer applies to purchases and balance transfers, a balance transfer fee of 3% of the transferred amount (with a minimum of $5) is applicable.
- Carrying a Balance: Once the introductory offer expires, any remaining balances incur a variable APR ranging from 19.24% to 29.99%.
- Cash Advances: Utilizing this card for cash advances can swiftly accumulate expenses. There’s an upfront charge of 5% (with a minimum of $10) for cash advances, alongside a cash advance APR of 29.99%, with no grace period.
- Late Payments: Both late and returned payments may result in a fee of up to $40.
- Foreign Transaction Fees: For international transactions, this card imposes a 2.7% foreign transaction fee, making it less favorable for use during international travel.
Additional Hidden Perks:
This credit card also offers several built-in consumer protections, which include:
- Purchase Protection: Cardholders automatically receive coverage for damage or theft of eligible items purchased with the card, extending up to 90 days. This coverage provides reimbursement of up to $1,000 per occurrence and up to $50,000 per calendar year.
- Return Protection: This coverage assists in obtaining reimbursement for items within 90 days of the purchase date when the merchant refuses to accept returns. It provides coverage of up to $300 per item and up to a maximum of $1,000 per year per account.
What could be improved?
Apart from the bonus-rewards caps on grocery spending, there are several other noteworthy downsides to consider. Firstly, you’re limited to redeeming your rewards solely for statement credits. This presents a significant disadvantage compared to other cash back credit cards that offer redemption options such as gift cards, merchandise, and travel rewards.
Additionally, it’s essential to acknowledge that many alternative cash back credit cards provide a longer timeline for a 0% APR on purchases and balance transfers. Opting for a card with an extended introductory APR offer can prove beneficial for debt consolidation purposes and avoiding interest on new purchases for an extended period.
Car alternatives
| Blue Cash Preferred® Card from American Express | Blue Cash Everyday® Card from American Express | Capital One SavorOne Rewards Credit Card | |
|---|---|---|---|
| Annual fees | $0 intro annual fee for the first year, then $95.Rates & Fees | $0Rates & Fees | $0 |
| Credit score needed | Good, Excellent | Good, Excellent | Excellent, Good |
| Intro APR | 0% on purchases 12 months | 0% on purchases 15 months | 0% intro on purchases 15 months |
| Bonus rewards | Earn a $250 statement credit | Earn a $200 statement credit | $200 Cash Back |
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Frequently asked questions (FAQs)
Q.1 Is the Blue Cash Preferred® Card from American Express worth it?
The Blue Cash Preferred® Card from American Express proves advantageous for consumers who frequently make substantial purchases at U.S. supermarkets, U.S. gas stations, and popular subscription services. This is particularly beneficial, especially within the first year, when the annual fee is waived.
Q.2 Is the Blue Cash Preferred® Card from American Express hard to get?
This card is designed for consumers with good-to-excellent credit, meaning not everyone may qualify for it.
Q.3 What is the credit limit on the Blue Cash Preferred® Card from American Express?
American Express does not provide specific details regarding a minimum or maximum credit limit for this card. Instead, your credit limit will be determined based on factors such as your income, credit history, and other relevant criteria.
Q.4 What are the benefits of the Blue Cash Preferred® Card from American Express?
Review of American Express Blue Cash Preferred: Possibly the Ultimate Family Card. Earn 6% cash back at U.S. supermarkets on up to $6,000 in annual spending, along with 6% cash back on select U.S. streaming services, and 3% cash back at U.S. gas stations and eligible transit.