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The American Express Blue Cash Preferred is a standout among cash-back credit cards, particularly for individuals and families who spend heavily on groceries, streaming services, and transit. With a 6% cash back rate at U.S. supermarkets (up to $6000 annually, then 1%) and on select U.S. streaming services, 3% cash back on U.S. gas stations & transit, and a host of other rewards, this card can deliver significant savings over time. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
In this review, we’ll break down all the key features of the American Express Blue Cash Preferred, helping you determine if it’s the right card for your lifestyle and spending habits. We’ll cover its rewards program, fees, welcome offer, additional benefits, and even how it stacks up against other popular cash-back cards. By the end, you’ll have a clear understanding of what this card offers, including the pros and cons, and whether it makes sense for your wallet.
The American Express Blue Cash Preferred is renowned for its high cash-back rates on everyday spending categories, especially for households that spend a significant portion of their budget on groceries and streaming services.
The cash back you earn is received in the form of Reward Dollars, which can be redeemed as a statement credit. While American Express is known for offering more flexible rewards programs for travel cards, the Blue Cash Preferred is straightforward—your cash back goes directly towards lowering your credit card bill.
One potential limitation is that this card does not allow direct deposit of cash back into your bank account, nor can you redeem points for travel or merchandise as easily as with other rewards cards. However, for users focused on getting maximum value from everyday purchases like groceries and streaming, the simplicity of a statement credit is often an advantage.
The American Express Blue Cash Preferred card comes with an annual fee of $0 for the first year, then $95 per year after that. While this fee may be a deterrent for some, the high rewards rates—particularly the 6% cash back at U.S. supermarkets up to $6000 annually (then 1%)—can easily offset the fee for many cardholders. If you spend $31 per week on groceries purchased at U.S. supermarkets, you’ll earn enough cash back to cover the fee. See Rates and Fees.
The American Express Blue Cash Preferred card comes with a welcome offer that can further sweeten the deal for new cardholders. Currently, you can earn a $250–$300 statement credit after spending $3,000 on purchases in the first 6 months of account opening. This offer provides an additional incentive for those looking to maximize their cash back in the short term.
This welcome offer is particularly appealing when compared to other cash-back credit cards that often offer bonuses in the $100-$200 range with similar spending thresholds.
Aside from the strong rewards program, the American Express Blue Cash Preferred also comes with a range of additional cardholder perks:
American Express offers purchase protection for up to 90 days from the date of purchase, covering damage or theft on eligible items up to $1,000 per incident. It also includes an extended warranty, which adds up to one extra year to the manufacturer’s warranty for eligible purchases.
If a retailer won’t accept your return within 90 days, American Express will reimburse you for eligible purchases, up to $300 per item and a maximum of $1,000 per year.
This insurance covers eligible rental cars when you pay for the rental with your card. While not as comprehensive as some other cards that offer primary rental coverage, it’s still a useful benefit for those renting vehicles domestically or abroad.
One of the standout features is the 6% cash back on select U.S. streaming services. If you’re subscribed to services like Netflix, Hulu, Disney+, or Spotify, this benefit can add up quickly.
To get a clearer picture of how the American Express Blue Cash Preferred compares to other similar credit cards, let’s take a look at a few top competitors:
The Blue Cash Everyday® card is a no-annual-fee alternative from Amex. It offers 3% cash back on U.S. supermarket purchases (up to $6,000 per year, then 1%), which is still strong but lower than the Blue Cash Preferred’s 6%. It also gives 2% cash back at U.S. gas stations and 1% on other purchases.
If you don’t want to pay an annual fee and spend less on groceries, the Blue Cash Everyday could be a better fit. However, if you spend heavily on groceries, the Preferred’s 6% rate will more than cover the annual fee.
Read our review of Chase Freedom Flex here.
The Chase Freedom Flex℠ is another top contender, offering a rotating 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter (activation required). It also gives 3% cash back on dining, which the Amex Blue Cash Preferred doesn’t cover. Additionally, it has no annual fee.
However, the Flex’s rotating categories can be hit-or-miss depending on the quarter, and the cash-back earnings cap is lower than the Blue Cash Preferred’s $6,000 limit on groceries.
Read our review of the Citi Double Cash Card here.
The Citi® Double Cash Card offers a simple flat-rate structure: 2% cash back on all purchases (1% when you buy and 1% when you pay). It doesn’t have bonus categories but provides a straightforward way to earn cash back without worrying about which purchases qualify.
This card may be better for those who prefer simplicity or spend across diverse categories. However, if groceries, streaming, and gas are your big expenses, the Blue Cash Preferred offers significantly more value.
The Amex Blue Cash Preferred card is ideal for:
However, this card might not be a good fit if:
The American Express Blue Cash Preferred card is one of the top cash-back credit cards for households with substantial spending on groceries, streaming services, gas, and transit. The 6% cash-back rate on U.S. supermarkets up to $6000 then 1% and streaming services provides exceptional value for families and frequent shoppers. With a valuable welcome offer and additional perks like purchase protection and extended warranties, the card’s $95 annual fee becomes a minor consideration, especially in the face of its potential rewards.
That said, the annual fee, along with the 2.7% foreign transaction fee, might deter those who don’t spend heavily on groceries or want a card that’s travel-friendly. In comparison to competitors, the American Express Blue Cash Preferred consistently offers higher cash-back rates in its target categories, making it a strong contender for those looking to maximize everyday spending rewards.
Ultimately, if you’re looking for a reliable card that delivers substantial rewards in common household spending categories, the American Express Blue Cash Preferred is a top choice to fuel your everyday savings.
Affiliate and Relationship Disclosure: Credit Mileage may receive compensation from affiliate links included in this post at no extra cost to you. This helps support our mission of providing quality financial education and resources. Additionally, Credit Mileage has a direct business relationship with eCreditAdvisor, which may be mentioned or linked in our content. Our opinions and recommendations remain our own, and we only promote products or services that we believe offer value to our readers. We currently do not have any credit card affiliate links on our website.
Editorial note: The views expressed in this article are solely those of the author and do not reflect the opinions of any bank, credit card company, airline, or hotel chain. None of these organizations have reviewed, approved, or endorsed the content in any way.
Legal and Financial Advice Disclosure: Credit Mileage is not a law firm, and this article is not intended to provide legal or financial advice. This information is meant purely for educational purposes. We strive to offer accurate and up-to-date information, but it is not a substitute for professional financial or legal advice. Always consult with a qualified attorney or financial advisor before making any decisions regarding your financial situation.
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