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Few cards offer a more lucrative cash back earning structure than the Blue Cash Preferred® Card from American Express. For those who spend frequently on U.S. streaming services, U.S. supermarkets, transit, and at U.S. gas stations, look no further. The Blue Cash Preferred could be a lucrative addition to your wallet.
Here's what you need to know about the Blue Cash Preferred to help you decide if the card is right for you.
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments with a fixed fee. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 20.24% - 29.24%.
- 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 and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred® Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- Rates & Fees
- 6% Cash Back on select U.S. streaming subscriptions
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back at U.S. gas stations
- 1% Cash Back on other purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
Page Contents
Blue Cash Preferred Pros
- Numerous high cash-back earning categories.
- Access to Amex Offers.
- $0 intro annual fee for the first year, then $95 (Rates & Fees).
Blue Cash Preferred Cons
- 6% cash-back earnings at U.S. supermarkets caps at $6,000 in spending, then 1%.
- You can't convert Reward Dollars to Amex Membership Rewards.
- Has foreign transaction fees — 2.7% of each transaction after conversion to U.S. Dollars (Rates & Fees).
Blue Cash Preferred Welcome Offer
As a new applicant for the Blue Cash Preferred, you can earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. Additionally, there's no annual fee during the first year of card membership; you'll pay $95 starting in year two (Rates & Fees).
To put this offer into perspective, a $250 welcome bonus translates to more than an 8% return on the first $3,000 you spend on eligible purchases.
Objectively, this is a solid welcome offer, but it's not the best we've ever seen for this card. While you might find value in waiting for a higher offer, there's no guarantee one will come around. And you'll miss out on cashback earnings in the meantime.
Related: Best Rewards Credit Card Offers This Month
Blue Cash Preferred Benefits
Considering its reasonable annual fee, the Blue Cash Preferred isn't rich in benefits. However, card members can still access a few perks — such as a Disney Bundle credit, intro APR and plan fees, and travel and shopping protections — that punch well above this card's weight.
Disney Bundle credit
Receive a $7 monthly statement credit after using your Blue Cash Preferred to spend $9.99 or more monthly on a Disney Bundle subscription. The credit is valid only in the United States at DisneyPlus.com, Hulu.com, or Plus.espn.com. This translates to $84 annually, nearly offsetting the card's $95 ongoing annual fee.
Enrollment is required for select Amex benefits.
$0 intro Plan It® fees
New accounts can take advantage of the Blue Cash Preferred‘s intro buy now, pay later fees (Rates & Fees). You'll pay $0 in Plan It fees on plans created during the first 12 months from the date of account opening.
Plans created after the first 12 months will have a monthly plan fee of up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
Related: Buy Now, Pay Later Programs — And Why You Should Skip Them
Intro APR
The Blue Cash Preferred also features an introductory Annual percentage rate (APR) of 0% on purchases for 12 months and 0% on balance transfers for 12 months.
After the introductory period, you'll pay a Variable APR of 20.24% - 29.24%. Note that there is a balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater.
Related: Best Credit Cards With No Annual Fee and 0% Introductory APR
Travel protections
- Car rental loss and damage insurance: Blue Cash Preferred cardholders can decline the collision damage waiver (CDW) at the rental company and utilize the card's secondary coverage. Not all vehicle types or rentals are covered. Coverage is unavailable for vehicles rented in Australia, Italy, and New Zealand and does not include liability coverage.
- Global Assist Hotline: If you are over 100 miles from home and need assistance, Global Assist provides a 24/7 hotline offering emergency assistance and coordination services, including medical and legal referrals, emergency cash wires, and missing luggage assistance. This service provides coordination only, and you'll be responsible for the costs of any third-party services you use.
Shopping protections
- Purchase protection: If you make a purchase with your card, it's covered against damage or theft for 90 days from the date of purchase. Coverage is limited to up to $1,000 per purchase and up to $50,000 per card member per calendar year.
- Return protection: This benefit allows you to return eligible purchases to American Express if the seller won't take them back — for up to 90 days from the date of purchase. American Express may refund the total purchase price, excluding shipping and handling, up to $300 per item and up to a maximum of $1,000 per calendar year per card account.
- Extended warranty: If you make a purchase with your card that has a manufacturer's warranty of five years or less, this benefit will add an additional year. Coverage for the item is up to the actual amount charged to your card — up to $10,000 per item and up to $50,000 per card member per calendar year.
Blue Cash Preferred Earning Rates
The Blue Cash Preferred‘s earning rates cement it as one of the strongest cash-back credit cards on the market. Here are the card's cash-back earning rates:
- 6% Cash Back on select U.S. streaming subscriptions
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back at U.S. gas stations
- 1% Cash Back on other purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
The main focal point in the card's earning categories is the ability to earn 6% cash back at U.S. supermarkets. Despite the $6,000 cap on this category, AwardWallet still ranks the card as one of the best for groceries and supermarkets.
If you were to spend $6,000 on groceries per year — an average of $500 per month — on the Blue Cash Preferred, that's a return of $360 annually.
After factoring in the $95 annual fee — which you'll pay at the beginning of the second year of card membership and each ensuing year — you still could come out $265 ahead every year simply by buying your groceries with this card. And that doesn't account for the cash back granted from any other spending on the card, such as transit and gas, or the Disney Bundle savings.
Redeeming Reward Dollars With the Blue Cash Preferred
Cash back earned via the Blue Cash Preferred is denominated in Reward Dollars — not Membership Rewards. You can redeem Reward Dollars in three ways:
- Statement credits (redeemed in increments of $25)
- Gift cards
- Merchandise
To do so, log in to your American Express account and navigate to “Use Reward Dollars.”
Reward Dollars are worth $1 each, no matter what you redeem them for. However, redeeming for statement credits might offer the best value. After all, if you had a gift card in mind that you wanted to purchase, it makes sense to buy it at the grocery store — where you could also earn 6% cash back on the purchase.
Alongside earning cash back, you could redeem Reward Dollars as a statement credit to cover the cost of the gift card after buying it. This option offers a higher rate of return than purchasing the gift card outright with Reward Dollars on American Express' website.
Thankfully, Reward Dollars never expire as long as your account is open and in good standing with American Express.
Application Restrictions
The Blue Cash Preferred‘s welcome offer — including the intro APR and Plan It fees — is only available to those who have never had the card before. This restriction aligns with American Express' general “once-per-lifetime” rule for credit card applications.
When you apply, American Express will also consider the number of accounts you have opened and closed with Amex in the past. Frequent account opening and closing could impact welcome offer eligibility. American Express will generally warn you if you're not eligible for the offer after you apply. After that point, you can either proceed with the application or discard it entirely.
Amex also has other rules you need to keep in mind:
- You can only have five Amex credit cards at one time.
- You can't get more than two Amex cards in 90 days.
Related: Understanding Rewards Credit Card Application Rules and Restrictions
Cards That Compete With the Blue Cash Preferred
While undoubtedly a compelling card based on its earning categories, the Blue Cash Preferred isn't for everyone. If you find yourself intrigued but not sold on it, consider these alternatives as you evaluate what's currently in your wallet and what you want your longer-term credit card strategy to look like.
- If you spend significantly at grocery stores and value transferable points over cash back, consider the American Express® Gold Card. While the card carries a hefty $325 annual fee (Rates & Fees), it earns 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 in purchases per calendar year, then 1X). You can transfer your points to American Express' long list of transfer partners, as well. You can view our full Amex Gold review for more details.
- If you found the Blue Cash Preferred exciting but want to avoid an annual fee entirely, consider the Blue Cash Everyday® Card from American Express. It has a $0 annual fee (Rates & Fees) and can earn 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. While not identical, the card does provide similar earning rates without levying an annual fee. Learn more in our Blue Cash Everyday review.
- If you want a simple approach to cash back from another bank, consider the Chase Freedom Unlimited®(Rates & Fees). You'll earn a minimum of 1.5% on all other purchases cash back on all purchases, won't pay an annual fee, and can combine these rewards with earnings from other Chase credit cards to unlock additional value. Our Freedom Unlimited review has more information.
(Terms apply)
- 4X Membership Rewards® Points at restaurants worldwide, plus takeout and delivery in the U.S. (on up to $50,000 per year in purchases, then 1X)
- 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X)
- 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com
- 2X Membership Rewards® points on prepaid hotels and other eligible travel booked on amextravel.com
- 1X on other eligible purchases
(Terms apply)
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year, then 1%)
- 3% cash back with U.S. online retailers (on up to $6,000 per year, then 1%)
- 1% back on other purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- Earn 5% on purchases through Chase Travel℠
- Earn 3% on dining at restaurants
- Earn 3% on drugstore purchases
- Earn 1.5% on all purchases
Related: Comparing American Express Cash-Back Cards
Bottom Line
Whether you're looking for a cash-back credit card or exploring ways to maximize the return on every dollar you spend, the Blue Cash Preferred is more than worth considering.
Generous earning categories can make this card a quick favorite — and one that can even pay for itself once the annual fee sets in after the first year of card membership. For those who spend considerably on groceries, the Blue Cash Preferred might offer the best return on the market.
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments with a fixed fee. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 20.24% - 29.24%.
- 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 and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred® Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- Rates & Fees
- 6% Cash Back on select U.S. streaming subscriptions
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back at U.S. gas stations
- 1% Cash Back on other purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
For rates and fees of the cards mentioned in this post, please visit the following links: Blue Cash Preferred® Card from American Express (Rates & Fees), American Express® Gold Card (Rates & Fees), Blue Cash Everyday® Card from American Express (Rates & Fees), and Chase Freedom Unlimited® (Rates & Fees)
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