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.
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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.
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