Getting the right cash-back credit card can change your finances in a pretty profound way. When rewards line up with your existing spending habits, it can mean taking advantage of those benefits to chip away at your monthly bills just by spending money normally.
If you’re on the lookout for a cash-back credit card, you should take a long, hard look at the American Express Blue Cash Preferred Card to see if it’s right for you.
In This Review:
- What You Need to Know About the American Express Blue Cash Preferred Card
- The Best Features of the Blue Cash Preferred Card
- Blue Cash Preferred Card Additional Considerations
- Which Potential Users Should Consider The Blue Cash Preferred Card
This card offers great cash-back rates on purchases at U.S. supermarkets and gas stations with a flat 1 percent on all other purchases.
Best for: Cardholders with families and other frequent grocery shoppers; people spending a lot on gas.
The American Express Blue Cash Preferred Card is going to be most useful for people with grocery bills that hit the $6,000 cap each year — spending $500 a month on groceries — to grab the full $360 in cash back. Additionally, the 3 percent back on gas has no cap and can really add up if you drive a lot. There are also select department stores (including Bloomingdale’s, Kohl’s and Macy’s) where you get 3 percent back on eligible purchases.
Keep Saving: 35 Ways to Save Hundreds on Groceries
There’s also the added bonus of $250 cash back after you spend $1,000 in the first three months you have the card, meaning you’re essentially getting a 25 percent-off sale on all your spending for the first $1,000.
Of course, while all of this sounds good, the $95 annual fee means you have to use the card enough to make it worthwhile. If you infrequently use this card — or if you don’t pay your full balance each and every month — you’ll end up losing money on the deal. For an American Express card with good cash-back features and no annual fee, consider the Blue Cash Everyday card.
However, it’s worth noting that reaching $95 in cash back isn’t going to be difficult for most users. If you spend at least $1,583.33 at supermarkets over the course of the year, you’ll be breaking even. That comes out to about $30.45 a week and doesn’t factor in the rewards you’ll also be getting on gas and other purchases.
If you’re already spending at least $6,000 a year on groceries and you buy a lot of gas, the bonus cashback rates this card offers should mean that you can really benefit from it.
If your grocery bill is about $500 a month and you’re spending $100 a month on gas, your annual cash back should total almost $400 just for paying your normal bills with this card. Remember, that’s not counting the additional benefit of getting 1 percent back on all other purchases.
So, if you have a large family and a long commute, the benefits of the Blue Cash Preferred Card will be significant.
Click through for a complete American Express credit card comparison.
More on Credit Card Advice
- What You Need to Know About Credit Card Expiration Dates
- 10 Things You Should Never Put on a Credit Card
- Inventive Ways to Make Money Using Your Credit Card
This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by American Express.