Are you a big spending on groceries and streaming services?

Blue Cash Preferred® Card from American Express: Overview

APR

• Intro: 0% introductory APR for the first 15 months from the date of account opening (after that, the variable APR will be 19.24%–29.99%)
• Purchase: 19.24%–29.99% Variable
• Balance transfer: 0% intro APR on balance transfers for 12 months from the date of account opening on requests within 60 days of account opening (after that, the variable APR will be 19.24%–29.99%) with a fee of $5 or 3% of the amount of each transfer, whichever is greater
• Cash advance: 29.99% with a fee of $10 or 5% of the amount of each cash advance, whichever is greater
• Penalty: up to $40 for late and returned payments

Annual fee: $0 intro annual fee for the first year, then $95

Foreign transaction fee: 2.7% of each transaction after conversion to U.S. dollars

Buy Now, Pay Later: No fee for the first year, then 1.33% of each purchase

The Blue Cash Preferred® Card from American Express helps users overcome the $95 annual fee with high cash back rewards earned on groceries, streaming services, gas, and transit. So if these are your primary spending categories, give this card a look. Just make sure you’ll earn enough in rewards to compensate for the annual fee, which begins after the first year. 

If you use Disney+, Hulu, or ESPN+, the Blue Cash Preferred® Card also gives up to $7 statement credit each month when you spend $12.99 or more through the service. Plus, you can get up to $10 in statement credits each month you pay for a fitness membership to Equinox+ through your American Express account. These added benefits are subject to change or cancellation, so make sure they’re still available before applying.

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.

Blue Cash Preferred® Card from American Express: Rewards

The Blue Cash Preferred® Card from American Express doesn’t bother with rotating categories. Instead, you get 6% cash back on groceries and select streaming services, plus 3% back on gas and transit. All other purchases earn 1% cash back.

There are limitations to each of these categories, however. For instance, you only get 6% back on the first $6,000 in groceries per year, and not all streaming services qualify. You also won’t get the full 6% back if you bundle your streaming service with another product or have it billed by a third party like a cable company. You also won’t earn extra rewards at gas stations associated with supermarkets or warehouse clubs, so don’t take this card to Costco for gas.

Does the Blue Cash Preferred® Card from American Express offer a bonus?

New cardmembers can earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. The bonus comes as a statement credit eight to 12 weeks after you reach the spending threshold, provided your account isn’t past due at the time.

How to redeem Blue Cash Preferred® Card from American Express rewards 

You can only redeem rewards from the Blue Cash Preferred® Card from American Express as a statement credit, making it one of the most restrictive cash-back rewards programs available. Plus, you can only apply rewards to the amount you owe above the minimum payment because you still have to pay the minimum due each month.

Additional benefits

The Blue Cash Preferred® Card from American Express doesn’t stop with its 6% cash back on eligible purchases. Cardmembers are also eligible for the following benefits:

• $84 Disney Bundle Credit: Earn up to $7 statement credit each month (up to $84 back annually) after spending $12.99 or more each month on an eligible subscription to The Disney Bundle which includes DisneyPlus.com, Hulu.com, or Plus.espn.com using your Blue Cash Preferred® Card. Enrollment required.
• $120 Equinox+ Credit: Get up to $10 back each month you pay for an Equinox+ membership through your American Express account.
• Return protection: If a seller won’t accept your return within 90 days of purchase, American Express may refund you up to $300 for a maximum of $1,000 per year.
• Rental car loss and damage insurance: Rent a car with your American Express card, and you’ll be automatically covered for damage to or theft of the car in a covered territory.
• Global Assist hotline: Get 24/7 emergency assistance and coordination whenever you’re more than 100 miles from home.
• Send & Split: Send money and split purchases with another Venmo or PayPal user directly from the Amex App
• Pay It: Pay off small purchases as you go through the Amex App while still earning rewards.
• Plan It: Split up purchases of $100 or more into monthly installments for a fixed finance fee of up to 1.33% of the amount in the plan.

Is the Blue Cash Preferred® Card from American Express right for you?

The Blue Cash Preferred® Card from American Express offers high cash-back rewards, but comes with limitations. While big spenders at grocery stores and streaming services can enjoy 6% cash back, you’ll need to earn enough rewards to compensate for the $95 annual fee. This can be challenging when you only earn 6% cash back on the first $6,000 of grocery purchases each year. For instance, those rewards max out at $180 per year, meaning your monthly grocery bill must be at least $250 to $300 to zero out the annual fee.

The card also only lets you redeem rewards for a statement credit, which may not appeal to all users, such as those who like to use rewards for travel purchases. This probably isn’t the card for frequent travelers, as it offers limited travel benefits and has a 2.7% foreign transaction fee.

Credit cards similar to Blue Cash Preferred® Card from American Express

If you want a cash-back rewards credit card, there are other options that may be a better fit.

Wells Fargo Active Cash® Card vs. Blue Cash Preferred® Card from American Express

The main thing the Wells Fargo Active Cash® Card has going for it over the Blue Cash Preferred® Card from American Express is that the Wells Fargo card has no annual fee. This means all of the cash-back rewards you earn can go straight into your pocket. The Wells Fargo card only earns 2% cash back, but this applies to all purchases, so you don’t have to worry about rewards categories.

You can redeem the Wells Fargo Active Cash® Card rewards in many ways, including statement credits, gift cards, for new purchases or even as a lump sum of cash. So there is a lot more flexibility than with the Blue Cash Preferred® Card from American Express, which only lets you apply rewards towards a statement credit.

The Wells Fargo Active Cash® Card also offers a 15-month 0% introductory APR compared to only 12 months with the Blue Cash Preferred Card. However, the Wells Fargo card is an even less ideal pick for travelers with its 3% foreign transaction fee versus 2.7% on the Blue Cash Preferred® Card.

Capital One Savor Rewards vs. Blue Cash Preferred® Card from American Express

The Capital One Savor Cash Rewards Credit Card is another high-earning cash-back rewards card. It also has a $95 annual fee but gives users an unlimited 4% back on dining, entertainment and select streaming services. So if you spend more eating out than at grocery stores, the Capital One Savor Card may be better for you than the Blue Cash Preferred® Card.

However, there is no intro offer for a $0 annual fee or reduced APR with the Capital One Savor Rewards, so you start paying immediately, whereas you get 12 months of no annual fee and a 0% APR with the Blue Cash Preferred® Card. 

On the other hand, the Capital One Savor Rewards card is better to take when you travel since it has no foreign transaction fees. You also get access to Capital One Travel, where you can book trips for a lower rate and potentially earn more rewards.

Frequently asked questions

What is the 6% limit on the Blue Cash Preferred® Card from American Express?

The Blue Cash Preferred® Card from American Express limits the 6% cash back earned at U.S. supermarkets to the first $6,000 sent each year. After you reach this threshold, you earn only 1% back on supermarket purchases.

How much is the Blue Cash Preferred® Card from American Express?

The Blue Cash Preferred® Card from American Express card charges a $95 annual fee after the first year. In addition to that, you may incur other fees, such as balance transfer fees, cash advance fees, foreign transaction fees, and interest fees.

Is American Express Blue Preferred® Card worth it?

For the American Express Blue Cash Preferred® Card to be worth it, you’d need to earn more than $95 in cash-back rewards each year to cover the cost of the annual fee. People who spend a lot on groceries, streaming services, or Equinox+ may find it easy to reach this amount thanks to the high rewards in these categories.

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Please note that card details are accurate as of the publish date but are subject to change at any time at the issuer’s discretion. Before applying, please contact the card issuer to verify rates, fees, and benefits.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.