Is Amex Blue Cash Preferred worth it?

The Blue Cash Preferred® Card from American Express is often considered one of the best grocery credit cards, and for good reason. This card offers 6% cash back on up to $6,000 in US supermarket spend per year, as well as unlimited 6% off select US streaming services. 

Cardholders also earn 3% cash back on purchases at transit and US gas stations and 1% cash back on all other purchases. Add to that a generous welcome bonus, and you can get a $250 statement credit after you spend $3,000 in your first six months.

Most experts agree that the Amex Blue Cash Preferred is worth owning based on the grocery category alone. You can maximize this rewards category by spending $500 per month (up to $6,000 per year, plus 1%) on US grocery shopping. An excellent 6% yield earns you $360 in annual cash back rewards.

However, the Amex Blue Cash Preferred offers many other benefits that you should consider before enrolling. This guide explains how the card works, who it's best suited for, and what other cash back or general rewards credit cards you might want to consider.

Amex Blue Cash Preferred Details Amex Blue Cash Preferred has an annual introductory fee of $0 for the first year and $95 thereafter. From there, cardholders can get:

6% back on up to $6,000 in U.S. supermarket purchases per year (1% back thereafter). Select U.S. streaming services cut prices by 6% 3% refund on U.S. gas station and transportation purchases (including taxi or carpool, parking, tolls, public transit). 1% back on everything else

With the Amex Blue Cash Preferred, you can also enjoy an introductory rate of 0% on purchases and balance transfers for 12 months, followed by a variable APR of 16.99% to 27.99%. That makes it an attractive option for cardholders who make large purchases that need to be paid off slowly over time.

Is the American Express Blue Cash Preferred Card worth it? Only you can decide if the Amex Blue Cash Preferred is worth it, or if you should consider another rewards credit card. However, there are a few details to know before you can make a decision, including:

reward potential One of the top reasons to sign up for the Amex Blue Cash Preferred card is its great rewards program, which allows you to earn 6% cash back (then 1% back), 6% back on spending up to $6,000 in U.S. supermarkets per year 3% back on US gas and transportation purchases on select US streaming services and 1% back on everything else.

If you take the time to look at the numbers, it's easy to see where this card benefits, even factoring in an introductory annual fee of $0 for the first year, then $95 after that.

To get a better idea of ​​your rewards potential with Amex Blue Cash Preferred, let's assume you use your credit card to spend $1,108 per month ($13,296 per year) at US supermarkets, which equates to the average "moderate" spending for a family with two parents and two children (one child is 6 years old and the other is 9 years old).

Let's say you spend $1,568 a year on gas, which is the average household spending in 2020, according to the U.S. Bureau of Labor Statistics. On top of that, spend an extra $1,000 per month on various purchases on your card ($12,000 per year).

In this case you will get: Earn $360 on your first $6,000 in U.S. supermarket spend each year. $72.96 in U.S. supermarket shopping rewards after reaching the $6,000 limit. Earn $47.04 in rewards when you shop at US gas stations $120 bonus on all other purchases

This amount equates to $600 in rewards for one year, well above the $95 ongoing annual fee you have to pay. Also, this amount does not include the generous welcome bonus you can get.

redemption option An important factor to consider with the Amex Blue Cash Preferred is the very simple rewards program. This card offers regular cash back on qualifying purchases in the form of "Rewards Dollars," which can be redeemed on your statement when your rewards balance reaches or exceeds $25.

If you want a rewards credit card that you can redeem for gift cards, merchandise, travel, or other flexible options, consider other cash back card options, or even a travel credit card.
annual fee
Amex Blue Cash Preferred has an annual introductory fee of $0 for the first year and $95 thereafter. While the rewards potential could make this card worth the annual fee, keep in mind that there are other Amex credit cards with similar rewards and no annual fee.

For example, American Express' Blue Cash Everyday® Card has no annual fee and you can earn 3% cash back on US supermarket, US gas station and US online retail purchases on purchases of up to $6,000 per calendar category (was 1 %) and 1% cash back on other purchases.

You will receive cash back in the form of settlement credit. Amex Blue Cash Everyday also includes a welcome offer of $200 in credit after you spend $2,000 on your new card within the first six months.
cardholder benefits
When you sign up for Amex Blue Cash Preferred, you also get access to other cardholder benefits including rental car loss and damage coverage, access to the Global Assist hotline, Amex Purchase Protection, Returns Protection, and the Amex Pay It Plan it feature. Make sure you consider the Amex Blue Cash Preferred benefits and whether you will use them before committing.

Should I get Amex Blue Cash Preferred?
While the Amex Blue Cash Preferred works for just about anyone, some customers prefer this card over others. Here are some signs you should sign up for this card, and signs that Blue Cash Preferred might not be worth it:

Who should get the Amex Blue Cash Preferred
Anyone who spends at least $6,000 a year in U.S. supermarkets Commuters spending big bucks at gas stations or transportation in the US Individuals who want to purchase a lower introductory APR in their first year
Anyone who just wants to redeem account balance rewards
People who don't mind paying an annual fee on their credit card after the first year
Consumers with good to excellent credit (FICO Score 670 to 850 or VantageScore 661 to 850)
Who should pass the Amex Blue Cash Preferred
People who rarely spend money on groceries or gas
People who refuse to pay their annual credit card fees
Travel enthusiasts who like to earn rewards for travel-related purchases
People who want a card with better benefits, such as B. Annual travel credits, elite hotel status, or airport lounge access
How to Maximize Your Rewards with Amex Blue Cash Preferred
If you consider yourself an ideal Amex Blue Cash Preferred customer, there are several ways you can maximize your benefits. Follow these tips and earn more rewards throughout the year.

Maximize bonus categories
Using your card for all your regular expenses can get you more bang for your buck throughout the year, but you'll get the most bang for your buck by focusing on using the card in as many rewards categories as possible. Use it on all your US supermarket purchases and be sure to add this card as your preferred payment method on all your US subscription service accounts. Also, be sure to use your card for rideshares, gas, and any other public transportation purchases you make on a regular basis.

Keep an eye out for Amex deals
Amex Offers are a free offer that comes with your American Express credit card. The program includes limited-time offers that you can activate in your account to earn cash back or bonus points when you buy from select retailers and brands. Remember, the cash back you can earn with American Express Offers is separate from the rewards you earn with your credit card.

final result
The Amex Blue Cash Preferred is one of the most popular cash back credit cards on the market today, and worth considering if you spend a lot on groceries, gas, or transportation.
Still, there are plenty of other rewards credit cards to consider, including the American Express credit card with a different earning structure or rewards program.

Even if this card appeals to you, you should verify that you have sufficient credit to qualify or pre-qualify for the Amex Blue Cash Preferred Card. It's best to shop around and find a card that suits you and your financial needs. Before making a decision, be sure to compare several top credit cards from different issuers, and consider combining several credit cards that offer complementary benefits and perks.