Credit Cards

A Guide To The Amex Blue Cash Preferred Card

Posted: February 19,2020
by Jestan Mendame
Last updated: October 16,2020

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Is this the right card for me?

You’ve probably heard about the Amex Blue Cash Preferred card before and asked yourself – “Is this the right card for me?” There are countless numbers of credits cards to choose from, and it’s such a pain thinking which one would best suit you.

Stop spending countless hours googling information on the web, because this blog will answer all of your most basic questions about this card. We’ll make it easy for you as we break down the benefits, rewards, pros, and cons.

The video above discusses everything we’ve reviewed below, but if you’re more of a reader than a listener, then keep scrolling down.

Who Can Benefit The Most?

The Blue Cash Preferred Card from American Express is perfect for folks, especially big families, who spend most of their time and money on groceries, gas stations, and US streaming services. CNBC Select analyzed over 200 frequently used credit cards by consumers, and we concluded that American Express clearly has the edge over the others within the last five-year period.

New cardholders who spend at least $3000 on goods and services within the first six months will get a $300 statement credit.

The card is also currently offering a $0 introductory annual fee for the first year then an ongoing annual fee of $95. This is a limited offer and will run through December 12, 2020.

But even if the Amex Blue Cash Preferred annual fee is $95, the welcome bonus is already enough to cover your fees for about two and a half years.

Pros & Cons of Amex Blue Cash Preferred

Let’s weigh down on the pros and cons of the Amex Blue Cash Preferred. The illustration below shows that this card has more advantages.

Amex Blue Cash Preferred - Pros & COns

Big supermarket spenders can benefit a lot from this card. You’re entitled to get a cashback of $324 if you have annual spending of at least $5400 ($450 monthly) for groceries and streaming services.

You’ve already covered your yearly fees on these two categories if you spend this much. Plus, you can still earn a 3% cashback from your gasoline purchases and 1% cashback from your general purchases.

You’ll get your cashback as Blue Cash Reward Dollars. These rewards can then be credited to your account once your balance reaches the $25 threshold. Cardholders can also have the option of redeeming their rewards in the form of merchandise or gift cards.

And did we mention that new cardholders will get a $300 welcome bonus after they spend $3000 in the first three months? This current offer is valid until December and is subject to change.

Amex Blue Cash Preferred VS Everyday

You have to options: the Amex Blue Cash Preferred or the Amex Blue Cash Everyday. Now you’re left with one question, which one should you choose?

Choosing between these two cards isn’t that hard because the deciding factor is whether you want a no-annual-fee card or a card with an annual fee but gives you great rewards on gas and groceries.

Here’s are some of the differences between the two:

Amex Blue Cash Preferred

  • Has a $95 annual fee
  • 6% cashback on groceries
  • 6% cashback on streaming
  • 3% cashback on transit
  • 3% on gas
  • 1% on all other purchases
  • $300 cashback after spending $3000 in the first three months (offer is subject to change)

Amex Blue Cash Everyday

  • No annual fees
  • 3% cashback on groceries
  • 2% cashback on gas
  • 2% cashback on select department stores
  • 1% cashback on other purchases
  • $200 cashback after spending $1000 in the first three months (offer is subject to change)

Read More: Why The Amex Blue Business Plus Is Perfect For Startup Businesses

What We Think of The Amex Blue Cash Preferred

You need to compare the benefits to the lifestyle or spending habits that you have. That’s a rule of thumb when choosing a credit card. Anyways, let’s cut to the chase and figure out whether this card is perfect for you or not.

If you’re a big spender on groceries, gasoline, and streaming services, then this card is for you. A monthly spend of $250-$500 is ideal since this is the spending range that would cover your annual fees. That’s why we would recommend this card for big families.

The Amex Blue Cash Preferred foreign transaction fee is 2.7% so this card might not be suitable for travelers. And if you think that the annual fee is just too much, then don’t get this card.

There’s an alternative card offered by American Express, and that is the Amex Blue Cash Everday. It has no annual fees but has lower cashback rates. We’ll be covering this topic in a future post. 

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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