Blue Cash Preferred Review: Worth Annual Fee?
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If you are looking to get cashback rewards on common household categories like purchases at U.S. supermarkets and U.S. gas stations, consider the Blue Cash Preferred® Card from American Express. Amex created the Preferred card as an upgrade to the Blue Cash Everyday.
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Overall Score | 3.9 | ||
Rewards | 4.5 | ||
Interest Rates | 3.0 | ||
Fees | 4.0 | ||
Benefits | 4.0 | ||
Pros and Cons
- 6% at U.S. supermarkets (up to $6k/year in purchases, then 1%)
- 3% at U.S. gas stations
- Bonus cash back promotional offer
- Annual fee
- Not a Visa/MasterCard
Bottom Line
Excellent cash back credit card for families
Attention Shoppers
American Express Blue Cash Preferred Card earns 1% Cash Back on most categories and has a $0 intro annual fee for the first year, then $95 (See Rates & Fees). Nothing to get excited too about, right?
But here's the kicker: for certain purchases, you have the potential to earn a lot more...
- 6% Cash Back at U.S. supermarkets (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.
- 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, and buses).
Note: Cash back is received in the form of Reward Dollars that can be redeemed for statement credits.
For practical families, this is one of our favorite credit cards for groceries and gas.
Who This Card Is Good For
- Weekly grocery shoppers: Do you always find yourself spending too much on groceries?
If you have many mouths to feed, you'll enjoy the boost you'll get with this card's 6% cash back on items you're probably already buying at U.S. supermarkets (on up to $6,000 worth of purchases, then 1%).
- Commuters: Do you drive to work?
Some cards give you extra rewards on gas but only for 3 months out of the year. With this card, you get 3% back for what you pay at the pump at U.S. gas stations year-round.
Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Typically, AMEX has higher credit score requirements. Most Blue Cash Preferred cardholders have good to excellent credit scores over 700.
Why This Card
- Consistent Rewards: With Blue Cash Preferred card, there's no need to memorize special categories that change every 3 months like other popular cash back credit cards.
- Nice bonus offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
To take advantage of this promotion, visit American Express' secure website.
- Low intro APR: 0% intro APR on purchases and balance transfers for 12 months from the date of account opening, then a variable rate, currently 19.24% - 29.99% Variable (See Rates & Fees).
Supermarket List
You might be wondering what exactly qualifies as a "U.S. supermarket".
American Express considers a supermarket to be a store that offers a variety of food and household products, including produce, meat, and dairy as well as cleaners and pet food.
Chances are if a store sells clothes and electronics in addition to groceries, it is not - in Amex's view - a supermarket. So-called "big-box stores" (like Wal-Mart and Target), online superstores (like Amazon), and warehouses (like Costco) are NOT considered supermarkets. Your mom-and-pop corner convenience store or specialty shop that only sells cheese or meat are also NOT considered supermarkets. Retailers that qualify include Whole Foods, Meijer, Shoprite, Winn-Dixie, Stop and Shop, Vons, Pathmark, and online supermarket FreshDirect, among others.
Gas Station List
The good news about this card's cash back for gas station purchases is it goes beyond just gas. If the gas station you frequent also has a convenience store, consider using your Amex both at the pump and inside the store to get your milk or other last-minute items.
Amex views qualifying gas stations as those in the United States that primarily sell gasoline, so supermarkets (like Safeway) and warehouse clubs (like Costco) do NOT fall under this category even if they have their own pumps. Shell, Mobil, Hess, Exxon, Gulf, and Murphy are some examples of gas stations where you can get 3% back with this card.
Streaming Subscriptions List
Earn 6% cash back on select U.S. streaming subscriptions. You can earn cash rewards for purchase made from these specific providers:
- Amazon Music
- Apple Music
- Audible
- Paramount Plus
- Direct TV Now
- ESPN+
- Fubo TV
- HBO Now
- Hulu
- iHeartRadio
- Kindle Unlimited
- MLB.TV
- NBA League Pass
- Netflix
- NHL.TV
- Pandora
- Prime Video Unlimited
- Showtime
- Sling TV
- SiriusXM Streaming and Satellite
- Spotify
- YouTube Music Premium
- YouTube Premium
- YouTube TV
Pros:
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- Earns bonus cash back on specific categories: 6% U.S. supermarkets on up to $6,000/year in purchases (then 1%), 3% U.S. gas stations
- Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Cons:
- $0 intro annual fee for the first year, then $95
- Not as widely accepted as Visa/Mastercard
- 2.7% foreign transaction fee
How it Compares
With the Blue Cash Preferred, you have the potential to earn at least $360 a year in rewards just for doing your regular grocery shopping (if you spend at least $500 per month at U.S. supermarkets).
If you want a no annual fee credit card:
For a side-by-side comparison, here is how the Blue Cash Preferred stacks up against the Blue Cash Everyday, it's no annual fee sibling (See Rates & Fees).
Blue Cash Preferred | Blue Cash Everyday | |
|---|---|---|
Interest Rates and Fees | ||
| Introductory APR for Purchases | 0% introductory APR on purchases for 12 months | 0% introductory APR on Purchases for 15 months |
| Introductory APR for Balance Transfers | 0% introductory APR on balance transfers for 12 months | 0% introductory APR on Balance Transfers for 15 months |
| Purchase APR | 19.24% to 29.99% Variable based on your creditworthiness and other factors | 19.24% to 29.99% Variable based on your creditworthiness and other factors |
| Balance Transfers APR | 19.24% to 29.99% Variable based on your creditworthiness and other factors | 19.24% to 29.99% Variable based on your creditworthiness and other factors |
| Annual Fee | $0 intro annual fee for the first year, then $95 | |
| Terms Apply. | Terms Apply. | |
Benefits and Features | ||
| Cash Back Deal | Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. | Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. |
| Cash Back | 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. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. | 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. |
| Gas | 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). | 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. |
| Grocery | 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). | 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. |
| Apply Now | Apply Now | |
If you want to earn Membership Reward points (instead of cash back):
You may want to consider the American Express Gold Card (review), which earns Membership Rewards points.
Why would you want Membership Rewards points instead of cash back? Well if you like to travel, you can transfer Membership Reward points to a number of airline transfer partners and hotel partners. To learn more, read our beginner's guide to airline miles.
Compared to the Blue Cash Preferred card, the American Express Gold Card has the edge in terms of how rewards can be used (see Blue Cash Preferred vs American Express Gold for an in-depth comparison).
Blue Cash Preferred | American Express Gold | |
|---|---|---|
| Foreign Transaction Fee | 2.7% of each transaction after conversion to US dollars. | No foreign transaction fee |
| Annual Fee | $0 intro annual fee for the first year, then $95 | |
| Terms Apply. | Terms Apply. | |
| Cash Back Deal | Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. | |
| Bonus Deal | Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership. | |
| Cash Back | 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. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. | |
| Airline | 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com. | |
| Points | Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com. | |
| Gas | 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). | |
| Grocery | 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). | Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). |
| Restaurant | Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S. $120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required. | |
| Airline Transfer Partners | Airline transfer partners include Delta, Hawaiian Airlines, Aeromexico, Air Canada, Air France, Emirates, Cathay Pacific (Asia Miles), Virgin Atlantic, Singapore Airlines, Etihad, Alitalia, All Nippon Airways and more. | |
| Apply Now | Apply Now |
Bottom Line:
In our opinion, families who spend a lot on purchases at U.S. supermarkets and U.S. gas stations should consider the American Express Blue Cash Preferred Card. Since this card charges an annual fee, you need to use your card often to justify this cost.
If you do not pay by credit card often, you are better off with the no annual fee American Express Blue Cash Everyday Card. Remember, as with all credit card offers, terms and limitations apply.
Next Step: View the issuer's official application, terms, and details
David R is a contributing writer at CreditDonkey, a credit card comparison and reviews website. Write to David R at davidr@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through the Advertiser's affiliate programs.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.
For rates and fees of the Blue Cash Everyday card, please click here.
For rates and fees of the Blue Cash Preferred card, please click here.
For rates and fees of the American Express Gold card, please click here.
