The Blue Cash Preferred® Card from American Express is an excellent option for cardholders looking to earn high rewards on everyday spending, especially groceries, gas, and streaming services. Here’s an overview of the key details:
Key Features of the Blue Cash Preferred® Card:
- 6% Cash Back on U.S. Supermarkets:
- Earn 6% cash back on up to $6,000 per year in purchases at U.S. supermarkets (then 1% after that).
- This is one of the highest earning rates available for grocery purchases, making it ideal for families with high grocery bills.
- 3% Cash Back on U.S. Gas Stations & Transit:
- Cardholders earn 3% back on U.S. gas station purchases and transit (including parking, tolls, buses, trains, and more). This is a significant perk for those who commute or travel frequently by car.
- 1% Cash Back on All Other Purchases:
- For all non-bonus category purchases, you earn 1% cash back, which is fairly standard compared to other cash back cards.
- Introductory Offer:
- New cardholders can enjoy an introductory APR on both purchases and balance transfers for a period of intro_apr_duration at intro_apr_rate.
- This can be a great feature for those looking to consolidate debt or make large purchases without paying interest for a set period.
- Welcome Bonus:
- You can earn bonus_miles_full as a welcome bonus if you meet the spending requirements within the first few months. This is a solid incentive for new cardholders.
- Disney Bundle Credit:
- $84 yearly credit ($7 per month) toward the Disney Bundle (Disney+, Hulu, ESPN+), if you use the card for your subscription purchases. This is a nice perk for entertainment enthusiasts.
Pros:
- High Rewards Rates: 6% back on groceries, 3% on gas and transit, and 1% on other purchases.
- Intro APR: 0% for purchases and balance transfers during the introductory period.
- Generous Welcome Bonus: Potential to earn hundreds of dollars if you meet the spending requirement.
- Disney Bundle Credit: An added benefit for subscribers to Disney+ and other related services.
- Purchase and Return Protection: Coverage for eligible purchases in case of theft or damage, and assistance for returns when the merchant won’t accept items.
Cons:
- Rewards Cap: The 6% cash back on U.S. supermarkets is limited to $6,000 per year. After that, you only earn 1% cash back on groceries, which may not be sufficient for larger households.
- Annual Fee: There’s a fee of annual_fees after the first year, which could offset some of the rewards if you’re not spending enough to maximize the card’s benefits.
- Foreign Transaction Fees: Charges a 2.7% fee on transactions made outside the U.S., so not ideal for international travel.
- Limited Redemption Options: Rewards can only be redeemed as statement credits, which is more restrictive than cards that allow for gift cards, travel, or merchandise redemptions.
Who is the Card For?
This card is perfect for:
- Families with high grocery and gas bills, thanks to the strong 6% and 3% cash back categories.
- Those who are frequent streaming service users, as it offers 6% cash back on eligible streaming subscriptions.
- People with good-to-excellent credit who can qualify for the card.
- Cardholders looking for a solid welcome bonus and some useful perks like the Disney Bundle credit and purchase protections.
What Could Be Improved:
- The reward caps on groceries may limit its usefulness if you spend more than $500 per month on food and household supplies.
- The foreign transaction fee makes this card less desirable for international use.
- Redemption options are limited to statement credits, which is less flexible than other cards that allow for a broader range of rewards redemption.
Bottom Line:
The Blue Cash Preferred® Card is an excellent choice for those who spend heavily on groceries, gas, and streaming services. The high rewards rate in these categories can be very lucrative, especially during the first year when the annual fee is waived. However, the rewards caps, foreign transaction fees, and limited redemption options might make it less appealing for some users.
If you’re particularly interested in maximizing cash back on groceries and gas, and if you’re okay with redeeming your rewards only as statement credits, this card is definitely worth considering. However, make sure to compare it with other cards to see if the annual fee and caps on rewards will suit your spending habits.
