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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 streaming services, U.S. supermarkets, transit, and at U.S. gas stations, look no further. The card could be a lucrative addition to your wallet.
Here's what you need to know about the Amex 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.
- 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 19.74% - 28.74%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, Hulu.com, or Plus.espn.com U.S. websites. Subject to auto-renewal.
- 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 eligible purchases (then 1%)
- 3% Cash Back on eligible transit purchases including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back on eligible purchases at U.S. gas stations
- 1% Cash Back on other eligible 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
- Amex Blue Cash Preferred Card Pros
- Blue Cash Preferred Card Cons
- Blue Cash Preferred Welcome Offer
- Blue Cash Preferred Card Benefits
- Blue Cash Preferred Earning Rates
- Redeeming Reward Dollars With the Blue Cash Preferred Card
- Application Restrictions
- Cards That Compete With the Blue Cash Preferred Card
- Bottom Line
Amex Blue Cash Preferred Card Pros
- Numerous high cash-back earning categories, including U.S. supermarkets and U.S streaming subscriptions.
- Access to Amex Offers and Events with Amex™.
- $0 intro annual fee for the first year, then $95 (Rates & Fees).
Blue Cash Preferred Card Cons
- Spending caps on bonus rewards: 6% cash-back on groceries, up to $6,000 per year in purchases at U.S. supermarkets, 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).
- Intro APR period.
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, new cardholders can get more than an 8% return from this welcome bonus — and that's before factoring in the earnings on the spending to earn the bonus.
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.
Blue Cash Preferred Card Benefits
Considering its reasonable annual fee (Rates & Fees), the Blue Cash Preferred isn't rich in benefits. However, cardmembers can still access a few perks — such as a Disney streaming credit, which includes Disney+ bundle subscription purchases, intro APR and plan fees, and travel and shopping protections — that punch well above this card's weight.
Disney streaming credit
Receive up to $10 monthly Disney streaming credit after using your Amex Blue Cash Preferred to spend on select streaming services. The credit is valid only for U.S streaming subscription purchases, including bundle subscription purchases, at DisneyPlus.com, Hulu.com, or Plus.espn.com. The Disney streaming credit translates to up to $120 annually, offsetting the card's $95 ongoing annual fee.
$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 option, based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
Low Intro APR Period
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 19.74% - 28.74%. Note that there is a balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater.
Car rental loss and damage insurance
Blue Cash Preferred also offers additional benefits for travel booked with the card . Cardholders can decline the collision damage waiver (CDW) at the rental company and utilize the card's secondary coverage. However, restrictions apply, and not all vehicle types or rentals are covered by the card's car rental loss and damage insurance. 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. The Global Assist Hotline service provides coordination only, and you'll be responsible for the costs of any third-party service providers you use.
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
The Return Protection 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. Coverage limits apply to 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 Amex Blue Cash that has a manufacturer's warranty of five years or less, this benefit will add an additional year to the original manufacturer's warranty. Coverage for the item is up to the actual amount charged to your card — up to $10,000 per eligible item and up to $50,000 per card member per calendar year.
Send & Split®
This benefit allows card members to easily split purchases with Venmo or PayPal users directly from the card app. An advantage of this benefit is that you can still keep all the rewards from the full buy. Amex also handles the math to split purchases, sends payment requests, and tracks those payments as they come in.
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 eligible purchases (then 1%)
- 3% Cash Back on eligible transit purchases including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back on eligible purchases at U.S. gas stations
- 1% Cash Back on other eligible 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 on eligible purchases 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 additional cash back on transit, gas, and select streaming subscriptions granted from spending on the card.
Related: Amex Expands Streaming Category on Blue Cash Preferred: Earn 6% Cash Back on These 32 Services
Redeeming Reward Dollars With the Blue Cash Preferred Card
Cash back earned via the Blue Cash Preferred is denominated in the form of Reward Dollars — not Membership Rewards. You can redeem those rewards in three ways:
- Statement credits (redeemed in increments of $25)
- Gift cards
- Merchandise
To do so, log in to your American Express online 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 reclaim 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 a good to excellent credit score and have never had the card before. This last 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.
Cards That Compete With the Blue Cash Preferred Card
While undoubtedly a compelling card based on its earning categories and the lack of fee for the first year (Rates & Fees), 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.
(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 eligible purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year in eligible purchases, then 1%)
- 3% cash back with U.S. online retailers (on up to $6,000 per year in eligible purchases, then 1%)
- 1% back on other eligible 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
- 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). Earn 3% cash back on eligible purchases 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 a cash back card 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. Check the Freedom Unlimited review for more information.
Bottom Line
Whether you're looking for a cash-back credit card or exploring ways to maximize the return on every dollar spent and earn rewards , the Blue Cash Preferred Card from American Express 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. For those who spend considerably on groceries, the Blue Cash Preferred card 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.
- 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 19.74% - 28.74%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, Hulu.com, or Plus.espn.com U.S. websites. Subject to auto-renewal.
- 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 eligible purchases (then 1%)
- 3% Cash Back on eligible transit purchases including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back on eligible purchases at U.S. gas stations
- 1% Cash Back on other eligible 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)
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
