The Blue Cash Preferred® Card from American Express stands out among rewards credit cards by offering substantial long-term value for everyday expenses. While it requires an annual fee of $95 after an introductory period of no fee in the first year, the potential cash-back benefits far outweigh this cost for many users, especially families, commuters, and home chefs. New cardholders can enjoy a welcome offer of a $250 statement credit upon spending $3,000 on eligible purchases within the first six months. Additionally, the card provides an introductory 0% APR for 12 months on both purchases and balance transfers, making it easier for consumers to manage larger expenses without accruing interest during that period.
The card offers an exceptional rewards structure, including 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% at transit and U.S. gas stations, and 1% on other purchases. Cash back is provided in the form of Reward Dollars, redeemable as statement credits or for purchases at Amazon.com. Given the structured rewards categories, families may find that they could potentially earn over $500 in cash back annually, even after accounting for the annual fee. Notably, cardholders should be aware of what qualifies under these categories, ensuring they maximize their rewards without any confusion.
The Blue Cash Preferred also includes perks that, while secondary to cash-back earnings, can offer significant savings. For instance, cardholders can receive a monthly statement credit of $7 for spending at least $9.99 on an eligible Disney Bundle subscription, translating to an annual saving of up to $84. The card also provides benefits such as car rental loss and damage insurance, extended warranty protection on eligible purchases, and purchase protection against damage or theft. These features enhance the card’s value, catering to consumers looking for comprehensive financial tools as part of their credit experience.
While the Blue Cash Preferred offers numerous advantages, it is essential to consider its limitations. The annual fee, while potentially offset by rewards, may not suit all consumers, particularly those who might struggle to utilize the card’s benefits effectively. Moreover, the card’s robust rewards categories are limited to U.S. purchases, making it less beneficial for those who frequently travel abroad. Importantly, international transactions incur a 2.7% foreign transaction fee, which could add significant costs for globally-minded travelers. Consequently, individuals who do not primarily spend in the outlined reward categories may want to explore no-annual-fee alternatives that better fit their lifestyles.
American Express has designed the Blue Cash Preferred Card to be user-friendly for rewards redemption. Cardholders have the flexibility to redeem their cash-back earnings without minimum thresholds, either towards their account balance or via eligible Amazon purchases. This makes it convenient for users who wish to apply their cash-back earnings immediately. Given Amex’s wide acceptance in the U.S. (99% of merchants), consumers are less likely to encounter issues using the card for daily transactions, although international acceptance remains more challenging when compared to cards from other networks.
For those seeking alternatives, several other cash-back credit cards present appealing options. Cards such as the Blue Cash Everyday® Card, which has a $0 annual fee, offer 3% cash back at supermarkets, gas stations, and on U.S. online purchases, along with a comparable welcome offer. The Capital One Savor Cash Rewards Card stands out with no annual fee, a generous cash-back percentage on entertainment and dining, and a solid introductory APR. Lastly, the Chase Freedom Unlimited card provides an excellent welcome offer and ongoing rewards with no annual fees, focusing on essential categories like travel and dining. Each of these alternatives can cater to different financial goals and spending habits, enabling consumers to select a card that best aligns with their needs.