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With several cashback rewards opportunities and a 0% introductory APR for the first year, the American Express® Blue Cash Preferred® is a great card for people looking to save big on food, transport, and other day-to-day costs.
Its annual fee of $95 and potentially high APR make this card ideal for people planning on using it often and paying it off on time. Otherwise, you may end up with too many costs and not enough rewards to make the card worth it.
Quick Review
The American Express® Blue Cash Preferred® card offers a long list of cashback opportunities and American Express exclusive benefits, making every one of your purchases and experiences an opportunity to save. You can get:
- 6% back at supermarkets for $6,000 in purchases (then goes down to 1%)
- 6% back on streaming
- 3% back on gas stations and other transit purchases
- 1% back on everything else
- $350 bonus when you spend $3,000 in first 6 months
- 0% APR for first 12 months
The cashback rewards for grocery store purchases are limited, so you’ll only earn $360 back from your first $6,000 in supermarket purchases a year before the rewards drop down to 1% for that category.
The other cashback reward categories are unlimited. This means there’s an opportunity to save anywhere from 1%–6% on every purchase made with the American Express® Blue Cash Preferred® card. The rewards program is relatively easy to understand, which makes it great for novice and experienced credit card holders alike.
The American Express® Blue Cash Preferred® card also offers 0% APR for the first 12 months, which is especially helpful when making large purchases that will take several months to pay off.
The drawbacks for the American Express® Blue Cash Preferred® card are its high APR of 17.74%–28.74% (variable), high spending requirement to unlock the welcome bonus ($3,000 in the first 6 months), and $95 annual fee. If you don’t use the card frequently enough or make your payments on time, this could end up being quite an expensive credit card to own and not worth its high annual fee.
American Express® Blue Cash Preferred® Important Details
Basic Card Details
- Annual fee: $95
- Purchase APR: 17.74%–28.74% (variable)
- Rewards rate: 1%–6%
- Welcome bonus: $350
- Grace period: 25 days
Additional Information
- Fraud dispute resolution services
- Access to American Express Experiences
- Free credit checks with Amex My CreditGuide
American Express® Blue Cash Preferred® Feature Breakdown
Let’s break down the key features of the American Express® Blue Cash Preferred® card to help you determine if this card is right for you and your credit card needs.
Fees
- Annual fee: $95
- Cash advance fee: $10 or 5% (whichever is higher)
- Balance transfer fee: $5 or 3% (whichever is higher)
- Late fee: Up to $40
- Foreign transaction fee: 2.7%
Interest Rates
- Purchase APR: 17.74%–28.74% (variable)
- Balance transfer APR: 0% for first 12 months, then 17.74%–28.74% (variable)
- Cash advance APR: 28.24% (variable)
- Penalty APR: 29.99%
This isn’t the card for users who can’t pay off their credit card debt every month, given the potentially high interest rates. Interest rates stack up quickly, so the American Express® Blue Cash Preferred® card must be used carefully and responsibly in order to avoid falling into debt and hurting your credit score.
However, you can take advantage of the year-long 0% APR period if you have a large upcoming expense that you want to pay back over time.
Rewards
The cashback rewards for the American Express® Blue Cash Preferred® card are quite impressive. Here’s how it works:
- 6% cashback on groceries for $6,000 each year (then goes down to 1%)
- 6% cashback on select streaming services
- 3% cashback at gas stations
- 3% cashback on other transit costs (taxis/rideshare, parking, tolls, trains, buses, etc.)
- 1% cashback on everything else
Although this is quite a generous rewards program, the annual fee of $95 means you have to use the card regularly in order to break even and begin saving. Here’s what you would need to spend per year in each category to make the high annual fee worth it:
- Groceries/streaming: $1,584
- Streaming/gas/transportation: $3,167
- Everything else: $9,500
But don’t let these large numbers intimidate you too much. If you regularly make purchases in all categories throughout the year, you should break even easily. However, if you don’t plan on using your credit card that often, or if you don’t make enough to spend this much on groceries/transportation/and other purchases, a no-annual-fee credit card may be a better option for you.
Welcome Bonus
The American Express® Blue Cash Preferred® card’s welcome bonus of $350 is on the higher side, but you’ll need to spend at least $3,000 in the first 6 months to unlock it. You should consider if this aligns with your current spending habits, as the $350 welcome bonus will go a long way in covering your annual fee.
Cash Advance
A cash advance is when you withdraw cash from an ATM or money order using your credit card, rather than a debit card. While the American Express® Blue Cash Preferred® card allows cash advances, we don’t recommend using the service unless it’s an emergency.
The cash advance fee is $10 or 5% (whichever is higher) and the APR is incredibly high. These types of fees and interest charges can accumulate quickly, so you should only use this credit card for purchases, not cash withdrawals.
Balance Transfers
You can make balance transfers with the American Express® Blue Cash Preferred® card. While the first 12 months come with a balance transfer APR of 0%, you will be charged 17.74%–28.74% (variable) afterward, which can be very high, depending on the interest rate you’re offered.
If you plan on transferring money to pay off another credit card’s debt, make sure you pay the balance within the 12-month 0% APR period.
Other Benefits
As an American Express card holder, you receive exclusive access to American Express Experiences including concerts, sports games, and other events. Some of these experiences are by invitation only, while others simply offer cardholders early access to ticket purchases.
You also have access to the Global Assist® Hotline and Car Rental Loss and Damage Insurance.
If you’re a big streaming fan, the American Express® Blue Cash Preferred® card offers an $84 annual credit for the Disney+ Bundle, which includes Disney+, Hulu, and ESPN+. You can also get $120 in credit a year for Equinox Plus. Both of these perks require enrollment.
Buy Now Pay Later Plan
The American Express® Blue Cash Preferred® card offers users a Buy Now Pay Later Plan, which is perfect for cardholders planning on making large purchases which will take several months to pay off.
The Buy Now Pay Later Plan allows you to create payment plans within the first 12 months of owning the card for $0. Plans created after the first year will also include a fixed monthly plan fee of 1.33%.
Credit Reporting
American Express reports to all three major credit bureaus every month, which means your score will stay up to date while using the American Express® Blue Cash Preferred® card.
You can check your VantageScore with the free Amex MyCredit Guide service.
Authorized Users
Because the spending requirements to break even on the annual fee and unlock the welcome bonus are so high, adding an authorized user to the American Express® Blue Cash Preferred® card could be a great way to spend (and earn) more.
American Express doesn’t charge an extra fee for authorized users for this card. However, you’re still responsible for paying the entire card balance, so add authorized users with caution.
Customer Service
If you want to speak to American Express directly regarding this card, here are the relevant contact numbers:
Customer service
(800) 528-4800
Make a payment
(800) 472-9297
Apply for a credit card
(888) 297-1244
Check application status of new account
(877) 239-3491
Should You Get the American Express® Blue Cash Preferred®?
FinanceJar verdict
Yes, we would recommend this card for families and individuals with higher spending habits. The $95 annual fee, high APR and high spending requirements to unlock the welcome bonus makes this card ideal for people who will spend a good chunk of change each month on a credit card and pay it off on time. Otherwise, you may not be able to fully take advantage of the card’s benefits without ending up with high interest rates and fees.
Who is this card for?
- Families looking for ways to save: Given the cashback rewards on groceries, gas, and streaming, a family who’s always stocking up on groceries and driving the kiddos around would benefit massively from this card.
- Individuals who love shopping and saving: The high spending requirements on this card make it ideal for someone who makes purchases frequently and loves a good deal.
Comparable Cards
See how the American Express® Blue Cash Preferred® card compares to similar cards on the market.
