If you’re a frequent spender on groceries, streaming services, gas, and transit, the Blue Cash Preferred® Card from American Express offers compelling benefits that might make it a worthwhile addition to your wallet. Here’s an in-depth look at why this card could be a great fit for you, as well as the factors to consider.
High Lights
The Blue Cash Preferred® Card stands out for its robust rewards program, especially in categories where many people spend a significant portion of their budget:
• 6% Cash Back on Groceries: Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1% thereafter. For families or individuals with substantial grocery bills, this can translate to considerable savings.
• 6% Cash Back on Streaming Services: This high rate applies to select U.S. streaming subscriptions, including popular services like Netflix and Hulu. It’s ideal for households with multiple streaming service subscriptions.
• 3% Cash Back on Gas: Receive 3% cash back at U.S. gas stations, which is beneficial for those who drive frequently.
• 3% Cash Back on Transit: This includes various transportation expenses such as taxis, rideshares, parking, tolls, trains, and buses.
Additionally, you’ll earn 1% cash back on all other purchases, ensuring that you still benefit from rewards on less frequent spending.
Welcome Offer
New cardholders can take advantage of a $250 statement credit after spending $3,000 on eligible purchases within the first 6 months. This generous offer, combined with the $0 introductory annual fee for the first year, makes it an attractive option for those looking to maximize their rewards from the start.
Annual Fee and APR
After the first year, the card has an annual fee of $95. While this fee could be a consideration for those who don’t spend heavily in the bonus categories, the cash back rewards often outweigh this cost for regular users.
The introductory APR is 0% on purchases and balance transfers for the first 12 months. After this period, the variable APR ranges from 19.24% to 29.99%. This makes the card less ideal for those who might carry a balance month-to-month, but if you pay off your balance in full each month, you can benefit from the rewards without incurring interest charges.
Additional Features
• Balance Transfer Fee: 3% of each transfer amount (minimum $5), which is standard for many credit cards.
• Disney Bundle Credit: Enroll in this offer to receive a monthly $7 statement credit for spending $9.99 or more on an auto-renewing Disney Bundle subscription.
• Buy Now, Pay Later: Use Plan It® to split large purchases into monthly installments with $0 intro plan fees for the first 12 months. After that, fees apply based on the plan duration and other factors.
Cash Back Redemption
Cash back earned with the Blue Cash Preferred® Card is received as Reward Dollars, which can be redeemed as a statement credit or at Amazon.com checkout. This flexibility is convenient for managing rewards.
Pros
• High cash-back rewards in several categories of spending
• No enrollment is required, cash back is automatic
• Comes with several travel benefits and protections
Cons
• Charges an annual fee
• 6% cash back at U.S. supermarkets is capped at $6,000 in annual spending (then 1%)
The Blue Cash Preferred® Card is a strong contender for individuals and families who spend significantly on groceries, streaming services, gas, and transit. Its high cash back rates in these categories can lead to substantial rewards, especially if you regularly utilize these benefits.
The card’s $95 annual fee after the first year might be a concern for some, but if you’re able to leverage its rewards effectively, it can be worth the cost. The introductory offers, including the $250 statement credit and 0% APR for the first year, further enhance the card’s value.
Overall, if you’re looking for a credit card that maximizes cash back on everyday spending and can handle the annual fee with your spending habits, the Blue Cash Preferred® Card is definitely worth considering.
