Blue Cash Preferred® Card from American Express Review
The Blue Cash Preferred® Card from American Express offers impressive cash back rewards on groceries, gas, and major department store purchases. The additional benefits, like Amazon Prime for a year, and initial spending bonus can easily counter the $75 annual fee.
Comprehensive additional benefits
The Blue Cash Preferred® Card includes a wide variety of additional benefits for cardholders. Common benefits in the industry include roadside assistance, car rental insurance, fraud liability, and travel insurance. The Blue Cash Preferred® Card includes all of these, as well as purchase security, price protection, emergency support, and several others. If you’re looking for a card with strong benefits, the Blue Cash Preferred® Card will be an excellent candidate.
Initial spending bonus
The Blue Cash Preferred® Card you get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months. Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same period. As an Amazon Prime member, you get unlimited Free Two-Day Shipping on millions of items.
Diverse ways to earn cash back
If you’re looking for a card that offers cash back for a variety of purchases, the Blue Cash Preferred® Card is a great option. You can earn 6% cash back at U.S. supermarkets up to $6,000 per year in purchases, 3% at U.S. gas stations and select U.S. department stores, and 1% on other purchases. Terms and limitations apply. It is worth noting that cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Having the ability to earn bonus rewards through several purchasing options is a great perk not offered by many different credit cards.
Competitive introductory APR
The Blue Cash Preferred® Card has a 0% intro APR on purchases and balance transfers for 15 months. After that, your APR will be a variable rate, currently 12.99% – 21.99%, based on your creditworthiness and other factors. Terms and restrictions apply. Not all rewards credit cards include an introductory APR, and among those that do, 15 months is one of the better offers. It is worth noting that this card is intended for those with excellent credit.
One drawback of the Blue Cash Preferred® Card is the $75 annual fee. Depending on your purchasing behavior and how you take advantage of the card benefits, this fee may end up being inconsequential. However, if you don’t plan on using your card very often, you will be able to find a credit card with good rewards and no annual fee.
Foreign currency transaction fee
If you know you are going to be traveling internationally, it’s important to note that the Blue Cash Preferred® Card does have foreign currency transaction fees. The 2.7% per transaction rate is lower than some cards on the market, but after several international transactions, it’s easy for this to add up to an unexpectedly large charge.
Cap on grocery rewards
It is impressive that bonus rewards for gas and purchases made at major department stores are not capped, but there is a $6,000 annual cap on grocery purchases. This may be an inconsequential factor, but if you’re planning on racking up cash rewards at the grocery store, it’s important to pay attention to. Once you hit the $6,000 limit, you’ll still be eligible to receive 1% cash back on all your purchases.
Rates and Fees
- Annual Fee: $75
- Cash Advance Fee: $5 or 3% per cash advance
- Cash Advance Rate (APR): 25.24%
- Foreign Currency Transaction Fee: 2.7% transaction
- Introductory Rate (APR): 0% on Purchases for 15 months
- Standard Rate (APR): 12.99% - 21.99% Variable
- Default Penalty Rate (APR): 27.24%
- Late Payment Fee: Up to $35
- Minimum Interest Charge: None
- Over-Limit Fee: None
- Returned Payment Fee: Up to $35
- Introductory Balance Transfer Rate (APR): 12.99% to 21.99% APR on balance transfers requested within 30 days of account opening, based on your creditworthiness and other factors.
- Standard Balance Transfer Fee: $5 or 3% per transfer
- Standard Balance Transfer Rate (APR): 12.99% - 21.99% Variable
- Additional Rewards for Dining: None
- Additional Rewards for Gas: 3% cash back on up to $6,000 spent annually, 1% thereafter
- Additional Rewards for Groceries: 6% cash back at U.S. stand-alone supermarkets for purchases up to $6,000 per year (1% thereafter)
- Additional Rewards for Shopping: 3% cash back at select major department stores
- Additional Rewards for Travel: None
- Bonus Points Offered: None
- Rewards Earnings for All Purchases: 1% cash back on eligible purchases
- Sign-Up Bonus: $100 Reward Dollars after spending $1,000 within first 3 months
- Type of Reward: Cash Back