Credit Cards » Credit Card Reviews » American Express Blue Cash Preferred Card Review 2021
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American Express Blue Cash Preferred Card Review 2021

American Express Blue Cash Preferred is a great card for large families that have large grocery expenses. This card also has 3% cashback on gas and department stores that can help with clothing costs and driving around a large family.

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In this Review..

This is an American Express card that sits among the elite of cash-back credit cards and it is one of the most ideal cards for families. The card offers you to Earn 6% cash back at U.S. supermarkets and selected U.S. streaming subscriptions, 3% cash back on transit and gas stations, 1% cash back on other purchases .

The cashback is usually received in the form of reward dollars and can be redeemed as a statement credit whenever the rewards are more than $25. The American Express Blue Cash Preferred offers a $300 back in the form of a statement credit after you spend $1,000 in purchases on your new Card in your first 3 months of Card Membership. .

Premier rewards, however, come at an annual fee of $95, which is quite pricey, especially since their competitors do this for free. But, their high reward standards and rates shall more than make up for this fee to the cardholders, especially people with families. The decision, therefore, becomes a break-even analysis, of the cost and rewards.

AMEX Blue Cash Preferred
AMEX Blue Cash Preferred Card review

On AMEX Secure Website

Rewards Plan

1-6% cashback

Sign up Bonus

$300 statement credit

0% Intro

12 months

PROS

CONS

APR

13.99% - 23.99%

Annual Fee

$95

Balance Transfer Fee

$5 or 3%

Credit Requirements

Good – Excellent Credit

However, this card’s primary allure is its industry-leading cash-back rate on most supermarkets of 6% as noted above, and this is one of the highest. 

Card & Issuer Reputation

  • 4/5  on WalletHub customer reviews (+1500 reviews): WalletHub customer reviews allow customers to post positive, negative or neutral reviews about marketplace experiences.
  • 838/1000 on J.D Power: American Express ranks in the 1st place,  got 838 out of 1000 available points on J.D. Power credit card satisfaction survey. J.D Power offers the most comprehensive and independent study of customer satisfaction of card issuers . The study aims to help consumers and issuers to understand user opinions and ratings of the largest bands. It covers terms, benefits, services, communication, rewards and more.

J.D. Power U.S. Credit Card Satisfaction Study 2020

In order to avoid bias based on a small number of reviews, we present only ratings with at least 200 reviews.

Benefits

Let’s take a look at the benefits of the Blue Cash Preferred card and see if it’s the right one for your wallet or not.

American Express Blue Cash Preferred offers a $300 back in the form of a statement credit after you spend $1,000 in purchases on your new Card in your first 3 months of Card Membership. . This bonus can help cover the annual fee of $95. 

American Express Blue Cash Preferred offers 6% cash back on purchases at U.S. supermarkets, up to $6,000 in total purchases. This can be up to $360 cashback up to the $6,000 limit. Once that limit is hit, grocery purchases are 1%.

American Express Blue Cash Preferred also offers a 3%cash back at all U.S gas stations. The gas cash back reward does not have a limit, so you can earn 1% on all gas purchases. 

American Express Blue Cash Preferred offers 3% cash back at certain U.S. department stores. This also has no limit on purchases. You can find a list of included department stores here.

If you are looking to save money on interest, the American Express Blue Cash Preferred offers a 0% introductory rate for 12 months on balance transfers.

If you have a credit card that you are trying to pay down, you can transfer the account and pay no interest on the transfer for 12 months.

You can also charge up the card and pay no interest for 12 months. This is great if you have a big purchase in mind and want to pay over time, but there are other cards that offer longer 0% APR introductory periods. 

You can redeem your cash back as a credit on your card. You can also use it on merchandise and gift cards.

American Express Blue Cash Preferred has an extended warranty on purchases of items even after the manufacturer warranty has expired, up to 5 years. It includes purchase protection up to 120 days after purchase for broken or stolen items. 

It also includes return protection, meaning that if a merchant does not take back an item within 90 days, American Express will refund the card holder. American Express will also work with card holders on disputed charges.

American Express Blue Cash Preferred holders have access to a roadside assistance hotline, so if you have an emergency on the road you can take comfort in the fact that you can call the hotline for help. Card holders also have rental car loss and damage insurance. 

Travel accident insurance is included when travel costs are paid with the American Express. They also have a global assistance hotline that can help you if have issues abroad, from legal issues to losing your luggage.

American Express has exclusive ticket presales for events such as concerts, Broadway shows, and sporting events. 

You have access to this with the American Express Blue Cash Preferred.

Drawbacks

Let’s take a look at the drawbacks of the Blue Cash Preferred card and see if it’s the right one for your wallet or not.

American Express Blue Cash Preferred has a $95 annual fee. This fee eats into some of the cashback rewards. Many cashback credit cards do not have annual fees.

The APR for American Express Blue Cash Preferred is a 13.99% – 23.99% variable rate, which is high for a card that requires borrowers with good credit histories. Cash advance is 25.24%. It also has a 29.24% penalty APR. 

American Express Blue Cash Preferred has a 12 month 0% APR introductory rate but there are other cards that have longer introductory rates. 

If you are looking to transfer some debts and pay them down or have a large purchase in mind that you want to pay over time, you may want to look at other cards with longer 0% APR introductory rates.

There is a balance transfer fee required if you want to take advantage of the introductory 0% APR rate. The fee is incurred when you transfer debts from one or more credit cards to your American Express Blue Cash Preferred.

This fee is $5 or 3% of the transfer, whichever is bigger.

The fee is upfront and will be added to your debt load when transferred and must be used within 60 days of opening the card to take advantage of the 0% APR intro rate. This fee is the same for any transfer before or after the introductory rate.  

American Express Blue Cash Preferred has a 2.70% fee for each transaction in another country. If you are traveling outside of the U.S. you may want to leave this card at home.

American Express Blue Cash Preferred has minimum redemption amounts of $25 for credit toward your credit card or to use on other rewards. 

There are other cards that do not have a minimum redemption amount and cashback rewards can be used at any time.

American Express is not as widely accepted as competitors like Visa and Mastercard. 

There may be merchants who do not accept the American Express Blue Cash Preferred.

Application Process

Visit the American Express Blue Cash Preferred homepage and click on “Apply Now.”

American Express Blue Cash_Apply now

Fill in your personal details on the next page and click “Next.”

American Express Blue Cash_Apply now

American Express Blue Cash_Apply now

Now, fill in your street address, city, zip code, and choose your birth date, SSN, etc.

American Express Blue Cash_Apply nowAmerican Express Blue Cash_Apply now

The next step is your financial details – you’ll need to share some details about your income and more relevant info such as employment status and annual income.

American Express Blue Cash_Apply now

American Express Blue Cash_Apply now

Next, read through the Terms and conditions and approve them.

Alternatives

There are other credit cards that do offer comparable cash back rewards – we’ve summarized the most popular cards which can use as an alternative to the Blue Cash Preferred:

American Express offers a card very similar to the American Express Blue Cash Preferred called the American Express Blue Cash Everyday Card. The American Express Blue Cash Everyday Card is somewhat like the little brother of the American Express Blue Cash Preferred.

American Express Blue Cash Everyday Card has a cashback bonus of 3% on groceries, 2% on gas and department stores and 1% on everything else.

In addition, there is 0% APR Introductory Rate on Balance Transfers and Purchases in the First 15 Months and you can earn 10,000 Membership Rewards® Points after you spend $1,000 in qualifying purchases on the Card within your first 3 months .

It also has a unique feature in which there is no transfer fee for the first 60 days of opening the card and card holders can take advantage of the 0% APR introductory rate.

The APR for the American Express Everyday Card is a 12.99% – 23.99% and also 2.70%foreign transaction fee. 

Chase Freedom Unlimited is a great cash back card for those with good to excellent credit. The 5% on travel purchased through Chase Ultimate Rewards, 3% on dining at restaurants, including takeout and eligible delivery services, 3% on drugstore purchases and 1.5% cash back on all purchases is one of the highest in the industry without having an annual fee or the hassle of figuring out which month for which type of purchases gets cash back.

In addition, the cash back feature is straightforward, unlike some other rewards cards that require you to jump through hoops to maximize the rewards. You can also get a $200 bonus after you spend $500 on purchases in the first 3 months from account opening + 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year bonus after signing up by spending $500 in purchases after 3 months. This bonus has a low threshold compared to other cards.

If you don't have time for calculations, you spend more than $1,500 monthly and you don't have specific places where you spend you money, the Chase Freedom Unlimited can be a great option for you.  

The Discover It Cashback card is also an alternative credit card to the American Express Blue Cash Preferred.

The Discover It Cash Back credit card is a great option for someone who wants access to 5% cash back rewards on rotating spending categories each quarter and unlimited 1% cash back on all other purchases.

It also offers 0% Intro APR for 14 months on purchases and balance transfers. 0% APR intro period on purchases and balance transfers for  giving you time to pay off your balance without interest. Then 11.99% – 22.99% Standard Variable Purchase APR and 5% balance transfer fee.

The discover cash back card  does not come with an annual fee.  

Is the AMEX Blue Cash Preferred Card Right for You?

American Express Blue Cash Preferred is a great card for large families that have large grocery expenses. This card also has 3% cashback on gas and department stores that can help with clothing costs and driving around a large family.

This card does have limits in that it only offers 1% cash back on all other purchases, so it should be used with other cashback cards to maximize benefits.

This card should be used strictly for groceries, gas, and at a few select department stores. It comes with an annual fee that will eat into your cashback rewards. Consumers that do not have large grocery bills may want to look into other cashback cards that do not have an annual fee.

Also consumers looking to pay off debt may want to look for a card with a longer 0% APR introductory rate.

If you’re looking for cash back on life’s day-to-day purchases, this card can be the groceries and gas credit card for many consumers. 

Credit Card Reviews Methodology

In order to determine the best possible credit cards, we look at things like fees, interest rates and rewards. We do this with companies that are associated with us as partners as well as other offerings. From there, we make a decision about what the best card is related to different categories and needs. We focus on interest rate cost & fees, especially the cost of carrying a balance, rewards – cards accumulate rewards in different currencies—points, miles, cash back—and their values vary widely usability – cards that accept a wide range of credit profiles and offer simple solutions for things like checking your credit score or contacting. We also consider customer reviews.

We look at cards related to good or excellent credit ratings that will then provide a range of different benefits and improvements for someone who has these scores. We also look at low fees when it comes to those who have lower credit scores.