The Blue Cash Preferred Card from American Express offers a strong cash back rewards program tailored for frequent supermarket and gas station spenders. In this comprehensive review, we’ll explore the top benefits, earnings potential, fees, and approval requirements to help you determine if the Blue Cash Preferred fits your wallet.
Introduction of Blue Cash Preferred® Card
The Blue Cash Preferred from American Express is a cash back credit card with bonus rewards for spending categories like U.S. supermarkets, gas stations, select U.S. streaming services, and transit. With no cap on total rewards, the 6% back earned in the top bonus categories can add up quickly for routine spenders.
Overview of Benefits and Rewards
Here are the main perks and earnings rates offered by the Blue Cash Preferred:
| Benefits & Rewards | Details |
|---|---|
| 6% Cash Back on Groceries | At U.S. supermarkets on up to $6,000 per year, then 1% back |
| 6% Cash Back on Streaming | On select U.S. streaming subscriptions |
| 3% Cash Back at Gas Stations | At U.S. gas stations on up to $6,000 per year, then 1% back |
| 1% Cash Back on Other Purchases | Unlimited 1% back on all other eligible purchases |
| $350 Welcome Bonus | $350 back after spending $3,000 in first 6 months |
| No Cap on Earnings | No maximum limit on total cash back earned |
| Cell Phone Protection | Up to $600 per claim if phone is damaged/stolen |
| Car Rental Insurance | Coverage when renting for up to 30 days |
| Purchase Protection | Covers new purchases against damage/theft for 90 days |
| Extended Warranty | Extends eligible warranties by 1 year |
| Amex Offers Savings | Get statement credits for purchases at select merchants |
| No Foreign Transaction Fees | No fees on international purchases |
For those with regular grocery and gas budgets, the Blue Cash Preferred’s uncapped 6% rewards in those categories can really add up over time. Even non-bonus purchases earn 1% back.
This card also packs useful shopping protections and perks:
- Cell phone protection up to $600 per claim for damage/theft when paying your wireless bill with the card.
- Auto rental insurance when renting for up to 30 days and paying with this card.
- Purchase protection covers new purchases for 90 days against damage or theft, up to $1,000 per claim.
- Extended warranty protection doubles eligible warranties up to 1 extra year on warranties of 5 years or less.
- Access to Amex Offers for statement credits on purchases at select merchants.
- No foreign transaction fees is rare for a cash back card.
Rates, Fees, and Credit Needed
The Blue Cash Preferred Card does come with a few fees:
- There is a 0% intro annual fee for the first year, then a $95 annual fee applies.
- Interest rates range from 13.99% to 23.99% variable APR on purchases and balance transfers.
- Balance transfers incur a 3% fee (minimum $5).
This card recommends good to excellent credit for approval. You’ll have the best approval odds and terms with a FICO score of 700 or above. Reported minimum incomes required are around $50,000 or more.
Comparing to Other Amex Cards
How does the Blue Cash Preferred compare to some other popular American Express cards? Here is a comparison table of the Blue Cash Preferred Card vs. other popular Amex cards:
| Card | Rewards Rates | Annual Fee | Key Differences |
|---|---|---|---|
| Blue Cash Preferred | 6% groceries, 6% streaming, 3% gas, 1% other | $95 (after first year free) | Highest bonus category earnings rates |
| Blue Cash Everyday | 3% groceries, 2% gas, 1% other | $0 | No annual fee but lower rewards rates |
| Cash Magnet | 1.5% on all purchases | $0 | Simple flat-rate cash back, no categories |
| Gold Card | 4X restaurants & groceries, 3X flights, 1X other | $250 | Travel and dining focused, premium perks |
| Platinum Card | 5X flights & hotels, 1X other | $695 | Luxury card with high annual fee, elite benefits |
Earning and redeeming with the Blue Cash Preferred is straightforward, here is a summarizing how earning and redeeming cashback rewards with the Blue Cash Preferred Card works:
| Earning & Redeeming | Details |
|---|---|
| Earn Cash Back | Earn cashback at rates of 6% on groceries and streaming, 3% on gas, and 1% on other purchases. Credited as statement credits. |
| Redemption | Cash rewards can be redeemed as statement credits against your balance anytime. |
| No Expiration | Earned cashback does not expire while account is open. |
| Mobile App | Track earnings and redemptions in real-time using the Amex mobile app. |
| Maximizing Value | Use the card for as many grocery, gas, streaming, and transit purchases as possible. Pay bill in full each month. |
To maximize value, use the card for as many grocery, gas, streaming, and transit purchases as possible. Pay your bill in full each month to avoid interest charges.
| Pros | Cons |
|---|---|
| Lucrative 6% cash back on groceries and streaming services | $95 annual fee after the first year |
| No cap on total rewards earned | 3% foreign transaction fee on international purchases |
| $0 intro annual fee for the first year |
Tips for Getting Approved
To get approved for the Blue Cash Preferred Card, you’ll need good to excellent credit (aim for 700+ FICO Score). Here are some tips:
- Check your credit reports and scores from all three bureaus before applying.
- Pay down balances on other credit cards to reduce your utilization ratio.
- Build your credit history with responsible account management over time.
- Have income from employment, investments, or business ready to document on the application.
If you don’t qualify yet, consider opting for the Blue Cash Everyday or becoming an authorized user to build your credit first before reapplying.
Our Final Verdict
The Blue Cash Preferred Card from American Express makes a compelling option for consumers who spend heavily on groceries and gas. The uncapped 6% cash back in those categories outweighs the $95 annual fee in the right spending scenarios. Just be sure your credit profile meets approval requirements to unlock the card’s full earnings potential and benefits suite.