Amex Blue Cash Preferred Card Review 2023

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The Amex Blue Cash Preferred is one of the best cash-back cards, particularly for consumers who spend a lot of money at U.S. supermarkets, use streaming services, or have lots of commuting and gas expenses. The annual fee of $0 intro for the first year, then $95 is worth it if your typical spending lines up with the card’s bonus categories.

Amex Blue Cash Preferred Review: Is It the Best Card for You?

If you spend a lot on groceries, streaming, or commuting, the Blue Cash Preferred® Card from American Express is one of the best credit cards for getting the biggest return for your purchases.

Along with offering a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months from account opening, the Blue Cash Preferred® Card from American Express earns 6% back on your first $6,000 in U.S. supermarket spending each year (then 1% back), which is the best of any cash-back credit card on the market. You’ll also earn 6% cash back on select U.S. streaming services, 3% back on U.S. gas stations and transit, and 1% back on all other eligible purchases (cash back is earned in the form of Rewards Dollars). 

The card does come with an annual fee of $0 intro for the first year, then $95, but it’s well worth it if your expenses match the card’s bonus categories. If you max out the U.S. supermarkets 6% cash-back category by spending $6,000 per year (or $500 a month, on average), you’d earn $360 in cash back from those purchases alone.

New cardholders also receive a 0% intro APR for 12 months on purchases and balance transfers from the date of account opening (then a 18.74% – 29.74% Variable APR). Other benefits include return protection, purchase protection, and extended warranty, making it a good choice for buying things like pricey gadgets or electronics.

The Blue Cash Preferred® Card from American Express also comes with monthly statement credits for Equinox+** and the Disney Bundle** which can be worth much more than the annual fee.

Before you decide if the Blue Cash Preferred® Card from American Express is right for you, be sure to consider other cash-back cards with bonus categories that might also fit your spending habits. For example, the Chase Freedom Unlimited® offers a bonus of 1.5% cash back in addition to regular earning on everything you buy up to $20,000 spent in the first year (worth up to $300 cash back) and has a $0 annual fee, and it earns 5% back on travel booked through Chase, 3% back on dining and drugstores, and 1.5% back on everything else with no spending caps.

Amex Blue Cash Preferred Rewards

Welcome Bonus

The Amex Blue Cash Preferred is offering a welcome bonus of a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months from account opening. Some cash-back cards don’t come with any sort of intro bonus, but this card ia also one of the few to have an annual fee ($0 intro for the first year, then $95), so the offer sweetens the deal. 

How to Earn Rewards

With a generous earning structure in popular categories, the Amex Blue Cash Preferred is a great option — but keep in mind there are exclusions and limits in some cases. Cardholders earn:

• 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, then 1% back (this doesn’t include superstores, convenience stores, warehouse clubs, and meal-kit delivery services)
• 6% back on select U.S. streaming subscriptions (see eligible services below)
• 3% back at U.S. gas stations (superstores, supermarkets and warehouse clubs that sell gasoline don’t count)
• 3% back on transit (including trains, taxicabs, rideshare services, ferries, tolls, parking, buses, and subways)
• 1% back on all other purchases

The supermarket, streaming, and gas categories are limited to purchases in the US; transit purchases can be worldwide, however. Plus, not every streaming service qualifies to earn 6% cash back, either.

Here’s Amex’s current list of eligible streaming subscriptions:

How to Use Rewards

The Amex Blue Cash Preferred is a straightforward cash-back credit card that doesn’t offer multiple options for redeeming your rewards.

The cash back you earn from the Amex Blue Cash Preferred is issued in the form of reward dollars, which you can apply to your account as a statement credit in any amount. However, you can’t use your rewards toward the minimum payment due.

You can’t redeem your rewards directly for travel like you could if you had an American Express card that earns Membership Rewards points, like the American Express® Gold Card
, or transfer them to airline or hotel partners.

Transferable points, like Amex Membership Rewards or Chase Ultimate Rewards®, are a good pick if you want the flexibility to redeem rewards for statement credits, merchandise, gift cards, or travel (when you’re ready).

If you prefer to only earn cash back, the Amex Blue Cash Preferred is a star. Not only do you earn 6% back on your first $6,000 spent in U.S. supermarkets each year (then 1%), but you also earn 6% back (with no caps) on U.S. streaming services, including Hulu, Netflix, and Spotify. You’ll also earn an unlimited 3% back at U.S. gas stations and on transit, which includes everything from Lyft and Uber to train fares, tolls, and subways.

Suppose you are the average family who spends a lot more than $6,000 per year (or $500 per month) at the supermarket. In fact, you spend $10,000 per year at Kroger or Whole Foods. With the Amex Blue Cash Preferred, you would earn $360 in cash back on the first $6,000 you spent and another $40 back earning 1% beyond the $6,000 cap each year. That’s $400 already in the bank.

Now imagine you spend another $100 per month at U.S. gas stations — at 3% back, that’s another $36 per year. Put $30 per month ($360 per year) in streaming services on the card, and you’re approaching $500 per year — and that’s not counting any other regular spending on the card or the $250 statement credit after you spend $3,000 in purchases on your new card within the first six months from account opening. This is why the annual fee is worth it — especially the first year.

If you maximize the 6% back at U.S. supermarkets, you’ll get $360 in rewards every year at a bare minimum. That’s more than enough to make up for the annual fee — and a lot more than you’d earn with a standard 1% cash-back credit card.

Alternatives to the American Express Blue Cash Preferred

• Citi® Double Cash Card: $0 annual fee, 2x points (2% cash back) on all purchases — 1 point per dollar when you buy, plus 1 point per dollar when you pay your bill (read our Citi Double Cash card review)
• Chase Freedom Flex℠
  : Earn a $200 after spending $500 on purchases in the first three months from account opening,  $0 annual fee, 5% cash back on travel purchased through Ultimate Rewards, 5% cash back on up to $1,500 in purchases each quarter in rotating bonus categories when you activate, 3% cash back on dining and drugstore purchases, 1% cash back on everything else (read our Chase Freedom Flex card review)
• Capital One Savor Cash Rewards Credit Card
  : $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening, $95 annual fee, 4% cash back on dining, entertainment, and popular streaming services, 3% cash back at grocery stores, 1% cash back on all other purchases (read our Capital One Savor card review)

Amex Blue Cash Preferred Benefits and Features

The Amex Blue Cash Preferred doesn’t offer a long list of features like The Platinum Card® from American Express
and other premium cards, but it does offer a handful of helpful perks.

Disney Bundle credits

One of the newest benefits of the Amex Blue Cash Preferred (and the Blue Cash Everyday® Card from American Express) is a monthly $7 credit when you pay for a Disney Bundle subscription of $12.99 or more with your card (enrollment required).

The Disney Bundle includes Disney+, ESPN+, and Hulu, so this is a valuable offer for lots of households. If you already subscribe to these streaming services, this perk could effectively save up to $84 per year.

Equinox+ credits

Fitness buffs can take advantage of $10 per month in statement credits toward Equinox+ membership when they pay with their Amex Blue Cash Preferred through equinoxplus.com (enrollment required). Equinox+ is an on-demand fitness app that costs $40 per month.

This could be worth up to $120 a year if you max out the benefit. Just be sure to pay your bill through Equinox+ online and not through the Equinox+ app, otherwise, you won’t receive the credit.

Intro APR offer

The card offers a 0% intro APR for 12 months on purchases and balance transfers from the date of account opening, followed by a 18.74% – 29.74% Variable APR.

The best 0% credit card offers can save you money if you have big purchases coming up that you’d like to pay for over time without racking up big interest charges, but make sure you have the means and a plan to pay off the balance before the introductory period expires. Otherwise, you may find yourself with a lot of high-interest debt.

Car rental loss and damage insurance

If you rent a car with the Amex Blue Cash Preferred and decline the rental company’s collision damage waiver, you’ll receive secondary auto rental coverage. Some restrictions apply, so be sure to read the limitations. This is secondary coverage, not primary car rental insurance, so it kicks in after your own car insurance policy.

Global Assist Hotline

Amex Blue Cash Preferred members who run into trouble while traveling can access Amex Global Assist Hotline for help with translation services, missing luggage, emergency legal and medical referrals, lost passport assistance, and more. The Global Assist Hotline will help arrange these services, but you’re responsible for any third-party charges.

Return protection

If you purchase an eligible item with the Amex Blue Cash Preferred and the original seller won’t accept a return, this coverage can get you up to $300 per eligible item (with a maximum of $1,000 per calendar year) for up to 90 days from the purchase date.

Purchase protection

If an eligible item you purchased with the Amex Blue Cash Preferred is stolen or damaged, you can get reimbursed, up to $1,000 per purchase and up to 90 days from the purchase date (up to $50,000 per calendar year).

Extended warranty

When you purchase an eligible item with the card, you can get up to one additional year added to original manufacturer’s warranties of five years or less (maximum coverage of $10,000 per item and $50,000 per account per calendar year).

Amex Offers

The Amex Blue Cash Preferred comes with access to the Amex Offers** program. Amex Offers can get you cash back or bonus points when you shop with specific retailers and travel brands. You can view all your available offers by logging into your card account and scrolling down. (Eligibility for these offers is limited. Enrollment is required in the Amex Offers section of your account before redeeming).

How the Blue Cash Preferred Card Compares

Blue Cash Preferred vs Blue Cash Everyday Card

The Amex Blue Cash Preferred and the Blue Cash Everyday® Card from American Express are both cash-back cards, but they differ when it comes to bonus categories, rewards amounts, and annual fees.

While the Amex Blue Cash Preferred has an annual fee of $0 intro for the first year, then $95, the Blue Cash Everyday® Card from American Express has a $0 annual fee. The Amex Blue Cash Preferred has higher cash-back bonus categories, too; the Blue Cash Everyday® Card from American Express earns 3% back at U.S. supermarkets on the first $6,000 spent each calendar year, then 1% back, 3% back at U.S. gas stations on the first $6,000 spent each calendar year, then 1% back, 3% back at U.S. online retailes (also on the $6,000 spent each calendar year, then 1% back), and 1% back on everything else. So the best option for you will ultimately come down to which bonus categories youy prefer and whether you’re willing to pay an annual fee.

Read our comparison of the Blue Cash Preferred Card and Blue Cash Everyday Card for more info.

Blue Cash Preferred vs Amex Gold Card

While the Amex Blue Cash Preferred is a cash-back card with an annual fee under $100 and the American Express® Gold Card earns Amex Membership Rewards points and has an annual fee of $250, the cards are both good options for maximizing your purchases at U.S. supermarkets. 

With the Amex Gold Card, you can earn 4x points at U.S. supermarkets (on up to $25,000 in purchases per year, then 1x). Insider’s points and miles valuations peg Membership Rewards points at 1.8 cents apiece on average, so points have the potential to be significantly more valuable than cash back if you redeem them for travel through Amex or its transfer partners. The Amex Gold Card also comes with more features, such as a monthly dining credit. Read our Amex Gold Card review for more details.

Blue Cash Preferred vs Chase Sapphire Preferred

Like the Amex Blue Cash Preferred, the Chase Sapphire Preferred® Card has a $95, but it’s not waived the first year. The Sapphire Preferred is a rewards credit card that earns Chase Ultimate Rewards points, not cash back, so if you don’t want to redeem rewards for travel it won’t make sense for you.

The Sapphire Preferred comes with more benefits, such as a $50 annual hotel credit, a 10% anniversary points boost, and six months of complimentary Instacart+ membership. It also earns 3x points on dining, 3x points on select streaming services and on online grocery purchases (with no cap), and 1 point per dollar on everything else — so its bonus categories could be more attractive depending on your spending patterns. Read our Chase Sapphire Preferred card review to learn more.

Blue Cash Preferred Annual Fee and Other Costs

Aside from the annual fee, the Amex Blue Cash Preferred has a few other fees you’ll want to be aware of, though most of them are avoidable if you pay your balance off in full each month.

• Intro APR: 0% intro APR for 12 months on purchases and balance transfers from the date of account opening
• Regular APR: 18.74% – 29.74% Variable
• Balance transfer fee: 5% of your transfer amount or $3, whichever is greater
• Cash advance: 10% of your transfer amount or $5, whichever is greater
• Foreign transaction fee: 2.7%
• Late payment: Up to $40

As with most other cards, the Amex Blue Cash Preferred charges fees for late payments, returned payments, and cash advances. It’s not a good choice for international purchases because it adds foreign transaction fees.

Amex Blue Cash Preferred Frequently Asked Questions (FAQ)

Methodology: How We Reviewed the Amex Blue Cash Preferred

Insider’s credit card experts evaluated the Amex Blue Cash Preferred by comparing it to similar cash-back cards and other rewards cards with a similar annual fee. These were the main criteria that factored into our review:

• Simplicity — How easy is the card to use and maximize? Is earning and redeeming rewards a simple process, or are there any hoops to jump through?
• Rewards earning potential — Does the card make it easy to earn significant cash back? Are its bonus rewards categories useful for the average cardholder?
• Benefits — Are the card’s benefits, beyond the rewards, appealing? Can the average cardholder get significant value from them?
• Annual fee — Does the card’s annual fee make sense given its selection of perks and the bonus categories for earning rewards? And does it compare favorably to other similar cards?

Read our full methodology for reviewing credit cards for more information about how we come up with our ratings.