in US supermarkets
on Select US Streaming Services
at US gas stations
Annual fee: $ 0 annual introductory fee for the first year, then $ 95
| Conditions apply.
Personally, I love accumulating points on my credit card spending, although understandably a lot of people prefer making money back. Finally, you can get cash back for anything you want, including travel. Most importantly, we are seeing some people switching to cashback cards due to the pandemic, which is causing many to rethink their credit card strategy.
While American Express is known for its great scoring cards (especially those that collect Membership Rewards points), the issuer also has several great cashback cards.
In this post I wanted to take a closer look at one of these cards, which even has an increased bonus and at the moment waives the annual fee. This card could seriously be worth picking up.
Amex Blue Cash Preferred Card Basics For February 2021
The American Express Blue Cash Preferred® card is a premium cashback credit card that offers a great welcome bonus, offers up to 6% cashback, and gives you access to several other potentially useful benefits.
However, this card is not for everyone. So let’s take a closer look at who should and shouldn’t be considering the Blue Cash Preferred for spending.
Welcome bonus of USD 300
The Blue Cash Preferred offers a welcome bonus of a $ 300 credit after spending $ 3,000 on purchases on your new card in the first six months.
$ 0 annual introductory fee for one year, then $ 95
The Blue Cash Preferred has one $ 0 annual introductory fee for one year, then $ 95 (Pricing & Fees) which puts it in line with many other mid-range credit cards, but it has the advantage that you can test the card for a year before paying an annual fee.
Card authorization & authorization
The Blue Cash Preferred welcome bonus is only available to people who have not yet had the card.
I find Amex cards to be pretty easy to approve for those with excellent credit. Just make sure you know:
- They can be approved for a maximum of two Amex cards within 90 days
- You can have a maximum of four American Express credit cards at any one time (this does not apply to hybrid cards). This limit used to be five cards, but it seems to have been reduced to four for now
2.7% foreign transaction fees
I would not recommend using Blue Cash Preferred outside of the US (or for purchases in foreign currency) as the card incurs 2.7% foreign transaction fees for each transaction after converting it to US dollars (prices and fees). There are plenty of other great cards out there with no foreign transaction fees.
Amex Blue Cash Preferred Card Rewards
If you are considering getting that Blue Cash Preferred CardThe reason for this lies in the excellent cashback bonus categories that the card offers. This card allows you to earn anywhere from 1% to 6% cashback depending on the category you are spending money in.
Let’s take a closer look at how this works.
6% cash back on groceries
The Blue Cash Preferred offers 6% cashback in US supermarkets for spending up to $ 6,000 per calendar year. After that you will earn 1% cashback. For me, this is the best cashback credit card for grocery spending.
Earn 6% cashback on groceries (so you can cook from the United Polaris cookbook)
6% cash back on streaming
The Blue Cash Preferred offers 6% cashback on select US streaming subscriptions. For those wondering which US streaming subscriptions are eligible for 6% (subject to change), here is the current list:
- Amazon Music Unlimited
- Apple Music
- Apple TV +
- AT&T TV now
- CBS All Access
- Disney +
- ESPN +
- Fubo TV
- HBO max
- HBO now
- I was listening to the radio
- Kindle Unlimited
- NBA League Pass
- Prime Video
- show time
- Sling TV
- SiriusXM streaming and satellite
- TIDAL music
- YouTube Music Premium
- YouTube Premium
- YouTube TV
3% cash back on transit
The Blue Cash Preferred offers 3% cashback on transit, including taxis, ridesharing, parking, tolls, trains, buses and more.
Earn 3% cashback on carpooling
3% cash back on gas
The Blue Cash Preferred offers 3% cashback at US gas stations with no caps. Note that this does not include gas purchased from supermarkets, supermarkets, and storage clubs that sell fuel. That makes this card one of the better cards for gas station purchases.
1% cash back on other purchases
Blue Cash Preferred offers 1% cashback for purchases outside of the above categories. While the bonus categories offer some great returns, the 1% cashback is disappointing. There are other cards that offer 2% + cashback on all your expenses.
Redeeming Blue Cash Preferred Rewards
With the Blue Cash Preferred you earn Blue Cash Rewards Dollars. You can redeem these dollars for bank statement balances if your available balance is $ 25 or more.
You cannot pay back your minimum due with cash.
Purchase and warranty protection
The Amex Blue Cash Preferred Card offers potentially valuable purchase protection and an extended guarantee. While you might want to review your card membership agreement for all the details, here are some things you can expect:
- Purchase Protection, which provides protection for eligible purchases that have been accidentally damaged, stolen, or lost; Valid for up to 90 days and $ 1,000 per event and $ 50,000 per calendar year
- Extended warranty, where you can add up to an additional year to the original manufacturer’s warranty, for warranties of five years or less
With Blue Cash Preferred, you get access to the phenomenal Amex Offers program, which is a great way to save money on purchases from various retailers. Getting as many Amex cards as possible is very valuable so that you can get these deals on multiple cards. Across all cards, this benefit saves me hundreds of dollars a year.
Is the Amex Blue Cash Preferred worth it?
If you are someone who wants to make money back and is spending a lot in supermarkets, this is it Blue Cash Preferred Card is an exceptional choice in my opinion – 6% cashback adds up quickly. Add in the waived annual fee for the first year and the terrific bonus and this card pickup becomes even more convincing.
The 6% cashback for streaming and 3% cashback for transit and petrol stations will also add up quickly. However, this is not the card I would use for your daily expenses as you would only earn 1% cashback in the no bonuses categories.
So let’s take a look at what other cards you might want to consider.
Showdown: Blue Cash Everyday Vs. Blue Cash Preferred
Amex has both Blue Cash Everyday® card from American Express (Review) and Blue Cash Preferred. What are the differences and would you be better off with Blue Cash Everyday?
- Blue Cash Everyday has an ongoing annual fee of $ 0 (prices and fees) compared to a $ 95 annual fee that you pay $ 0 on the Blue Cash Preferred after the first year of card membership
- The Blue Cash Everyday offers a welcome bonus of $ 200 versus a welcome bonus of $ 300
- The Blue Cash Everyday offers 3% cashback at US supermarkets (up to $ 6,000 per year, then 1%), 2% cashback at US gas stations and select US department stores, and 1% cashback on other purchases
In my opinion, the Blue Cash Preferred is well worth the ongoing annual fee as the 3% increase in cashback on groceries will add up quickly.
You can also apply for Blue Cash Preferred at any time. If after a year the card stops working for you, you can downgrade it to Blue Cash Everyday.
Simple Cash Back Card with no annual fee
If you’re just looking for the easiest cash back credit card available, it is tough to go wrong with credit card Citi® Double Cash Card (Review). The card offers 1% cashback when you make a purchase and 1% cashback when you pay for that purchase. Best of all, you can even convert these rewards into thank you points at a rate of one cent per point.
Blue Cash Preferred Bottom Line
If you want to spend a lot on groceries and make money back, this is it Blue Cash preferred is for you. Personally, I don’t have this card because I value earning rewards for travel, but for those who don’t want to get into the complexities of miles and points this is an excellent card.
This is an especially good time to pick up the card as the welcome bonus has been improved and the annual fee has been waived for the first year.
If you would like to learn more about the Blue Cash Preferred Card or to apply for it, follow this link.
The following links will take you to the prices and fees for the American Express cards mentioned. These include: Blue Cash Everyday® card from American Express (prices and fees) and Blue Cash Preferred® card from American Express (prices and fees).