Amex Blue Cash Preferred card review: Generous bonus categories and a solid welcome offer
Editor's Note
Blue Cash Preferred Card from American Express overview
The Blue Cash Preferred® Card from American Express is a lucrative cash-back card for several spending categories. If cash back is up your alley — and select U.S. streaming, U.S. supermarkets (up to $6,000 per year), transit and U.S. gas station categories align with your spending habits — then you can't go wrong with the Blue Cash Preferred. Card Rating*: ⭐⭐⭐⭐
*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.
There are pros and cons to picking a cash-back card over a travel rewards card. However, the Blue Cash Preferred could be great for infrequent travelers and those looking to spend their rewards in other ways.
To successfully apply for this card, TPG recommends having a credit score of at least 670 — and preferably above 700. It has an introductory $0 annual fee for the first year, then a $95 annual fee after that (see rates and fees).
Let's look at this card's ins and outs to help you decide if it's right for you.
Amex Blue Cash Preferred pros and cons
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Amex Blue Cash Preferred welcome offer
Cash-back credit cards rarely offer as solid of welcome bonuses as travel rewards cards do, but the Blue Cash Preferred has a decent welcome offer right now: New cardmembers can earn $250 cash back (as a statement credit) after spending $3,000 on eligible purchases in the first six months of cardmembership.
Most people, even low-spenders, should be able to easily hit that spending requirement.
Related: Got a new credit card? Here are 4 tips to help you earn your welcome bonus
Amex Blue Cash Preferred benefits
As a low-annual-fee card, the Blue Cash Preferred doesn't offer luxury perks. However, it does have some quality features worth mentioning.
You can receive up to $7 back each month as a statement credit (up to $84 back each calendar year, subject to auto-renewal) after spending $9.99 or more on an eligible subscription to The Disney Bundle — which includes Disney+, Hulu and ESPN+ — using your card. Note that enrollment is required in advance; terms apply.
You'll also enjoy several travel and shopping protections with the Blue Cash Preferred, including things like secondary rental car insurance when paying for the rental with your card.* You'll also enjoy extended warranty**, purchase protection** and return protection***.
Other cardmember benefits include "Plan It," which allows you to select purchases of $100 or more to split up into monthly payments with a fixed fee, Send and Split, which lets you send money or split purchases with Venmo or Paypal, and access to valuable Amex Offers.
*Eligibility and benefit level varies by card. Not all vehicle types or rentals are covered, and geographic restrictions apply. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company. Coverage is offered through American Express Travel Related Services Company, Inc.
**Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company.
***Eligibility and benefit levels vary by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details.
Related: Your complete guide to shopping protections on American Express cards
Earning cash back on the Amex Blue Cash Preferred
The standout feature of the Blue Cash Preferred is its various cash-back bonus categories:
- 6% cash back on select U.S. streaming subscriptions
- 6% cash back at U.S. supermarkets (up to $6,000 per calendar year, then 1% thereafter)
- 3% cash back on transit (parking, tolls, ride-hailing apps, subway etc.)
- 3% cash back at U.S. gas stations
- 1% cash back everywhere else
Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
While the Blue Cash Preferred is not the first card to offer bonus earnings on streaming subscriptions, its rate of 6% cash back is the industry leader. The Blue Cash Preferred is also a rewarding card at U.S. supermarkets and U.S. gas stations (6% back on up to $6,000 spent in a calendar year for U.S. supermarket purchases, then 1%).
Aside from the U.S. supermarkets category, the other earning categories don't have annual caps on how much you can earn. These are strong earning rates for anyone with regular spending in these categories.
For instance, TPG reader Malka Klein said the Blue Cash Preferred gets a "Great return on groceries, my highest expense category (after rent), no annual fee [$0 intro annual fee for the first year, then $95 each year thereafter]." (via a TPG newsletter survey)
Note: Reader-submitted responses have not been edited, reviewed or approved by the issuers nor reflect TPG's opinions of these cards.
The card's earning rate on spending at U.S. supermarkets is certainly a highlight, especially if you prefer to earn rewards through cash back.
Related: Blue Cash Preferred vs. Blue Cash Everyday: Battle of the cash-back cards
Redeeming cash back on the Amex Blue Cash Preferred
While cash-back cards won't unlock the doors to first-class airplane suites, there's also no pressure to save up for a specific reward. Plus, the Blue Cash Preferred has no minimum redemption amount.
You have two redemption options:
- Receive a statement credit
- Shop with your rewards at Amazon.com
Receiving a statement credit is likely your best option. I always recommend choosing redemption options that offer a lot of flexibility.
Which cards compete with the Amex Blue Cash Preferred?
The main alternatives to this card are other cash back cards that earn bonus rewards on groceries and gas, with no or a low annual fee.
- If you want similar benefits with no annual fee: The Blue Cash Everyday® Card from American Express has no annual fee (see rates and fees) and earns 3% back at U.S. supermarkets, U.S. online retail purchases and U.S. gas stations (on up to $6,000 per year, per category). After that, you'll earn 1% back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. To learn more, read our full review of the Amex Blue Cash Everyday.
- If you want Amex Membership Rewards points instead of cash back: The American Express® Gold Card is a great card for food lovers. It earns 4 points per dollar on U.S. supermarket purchases and dining (up to $25,000 per year for groceries and up to $50,000 per year for dining, then 1 point per dollar). It also comes with a range of food-oriented benefits. To learn more, check out our full review of the Amex Gold.
- If you want rewards with more uses: The Citi Double Cash® Card (see rates and fees) earns 2% cash back per dollar spent — 1% when you buy and another 1% when you pay your bill — on all purchases. If you want a card with a simple earning structure, this is it. To learn more, read our full review of the Citi Double Cash.
For additional options, check out our full list of cards that earn bonus rewards at supermarkets and gas stations.
Related: The complete guide to credit card annual fees
Bottom line
With the enticing bonus categories and a solid welcome offer, many who prefer cash-back cards will have no problem justifying the annual fee after the first year on the Blue Cash Preferred.
This card is best for those who spend regularly on groceries at U.S. supermarkets, streaming services, transit and gas. Disney fans can also find value in this card due to monthly credits for Disney bundle subscriptions (up to $7 each month, up to $84 each calendar year; enrollment is required and terms apply).
Apply here: Blue Cash Preferred
Related: Cash back vs. travel rewards
For rates and fees of the Blue Cash Preferred card, click here.
For rates and fees of the Blue Cash Everyday card, click here.