Amex Blue Cash Preferred® Review: Earn More Cash Back on Groceries and Gas

When it comes to the Amex Blue Cash Preferred® Card, the rewards alone are enough to turn heads:

• 6% back on groceries (up to $6,000 annually) and select streaming subscriptions.
• 3% back at gas stations and transit (taxis, rideshares, tolls, etc.).
• 1% back on everything else.

If you sign up now, you’ll also earn a fantastic welcome bonus: a $400 statement credit (recently increased from $350) when you spend $3,000 on your card within the first six months from opening your account.

But before you take the bait, make sure you understand this card’s pros as well as its cons. For example, the Amex Blue Cash Preferred® has an annual fee of $95, which is more than some competitors. As well, cash back rewards only come in the form of statement credit.

Even still, the Amex Blue Cash Preferred® Card has a lot to offer. Let’s take a look.

Amex Blue Cash Preferred® Card Overview

• Best for – Groceries and gas.
• Sign-up bonus – Earn $400 statement credit when you spend $3,000 in purchases within the first six months from account opening.
• Cash back – 6% back on groceries (up to $6,000 annually) and select streaming subscriptions, 3% back on transit and gas, and 1% back on all other purchases.
• Intro APR – 0% APR on purchases for 12 months.
• Regular APR – 15.49% to 25.49% variable.

Other Features

American Express also offers a program called Plan It®, which enables cardholders to split up large purchases ($100 or more) into monthly installments, interest-free. Instead of paying interest during the plan period, you’ll be given a fixed monthly fee (up to 1.33%), which is shown to you upfront.

If you opt into Plan It® for a purchase, Amex will offer you three different plan durations, dependent on your creditworthiness and account history.

For plans made within the first 12 months from account opening, you’ll get an intro offer of zero fees. After that, it’s the regular fixed fee of up to 1.33%.

In-Depth Analysis of the Amex Blue Cash Preferred®

Rewards

Foodies, listen up. Perhaps the greatest benefit available through the Amex Blue Cash Preferred® Card is the competitive cash back offer for grocery purchases. There is, however, a $6,000 annual cap, after which you’ll earn 1% on groceries.

On top of the generous 6% back on groceries, cardholders earn 6% back on select streaming services, 3% back on gas and transit purchases, and 1% back on everything else.

Read more: Best Cash Back Credit Cards

Bonuses

New cardholders can earn $400 when they spend $3,000 in the first six months after opening their Amex Blue Cash Preferred® Card. This reward comes in the form of statement credit.

Read more: Best Credit Card Sign-Up Offers

APR

Along with the $400 statement credit, the Amex Blue Cash Preferred® includes an intro APR of 0% for the first 12 months. After the first year, the APR increases to a variable rate of 15.49% to 25.49%.

Annual Fee

As you may have suspected, the Amex Blue Cash Preferred® Card does have some drawbacks — in this case, an annual fee of $95.

Read more: Best No Annual Fee Credit Cards

Other Fees

The Amex Blue Cash Preferred® Card also comes with some additional fees:

• Balance transfer fee – Either $5 or 3% (whichever is greater).
• Cash advance fee – Either $10 or 5% (whichever is greater).
• Foreign transaction fee – 2.7%.
• Late fee – $40.

Other Benefits

On top of this card’s impressive rewards system, cardholders can also boost their rewards through Amex Offers.

Amex Offers rewards you for purchases made at a variety of stores and services. You’ll have the option to select featured deals, which you can redeem by spending a set amount before the listed expiration date.

For example, recent Amex Offers have included getting a $25 statement credit when you make a single purchase of $99 at hbomax.com, or a $30 statement credit for spending $150 at Ray-Ban.

Amex Blue Cash Preferred® Card Pros & Cons

Pros

Attractive Rewards

You’ll earn 6% back on groceries (up to $6,000 annually) and select streaming services, 3% back on transit expenses (such as rideshare and parking), as well as 1% back on everything else.

Excellent Welcome Bonus

Receive 0% APR on purchases made in the first 12 months from account opening, as well as $400 statement credit when you spend $3,000 in the first six months.

Amex Offers

Earn more rewards through Amex Offers, which allows you to “clip coupons” within your account for popular brands like HBO Max, Ray-Ban, and more.

Buy Now, Pay Later

Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments.

Cons

Annual Fee

The Amex Blue Cash Preferred® Card has an annual fee of $95, which is hefty compared to some alternative cash back cards.

Rewards Redeemed as Statement Credit

The cash back you earn using your Amex credit card is received in the form of Reward Dollars, which cardholders can redeem as statement credit.

Credit Requirements

To be approved for this credit card, you’ll need an excellent credit score, such as 700 or higher.

Amex Blue Cash Preferred® vs. the Competition

Instead of offering high rewards rates for varying categories, the Citi® Double Cash Card provides a competitive cash back offer for everything.

Many popular cash back credit cards today offer 1% back, or occasionally 1.5%, on everyday purchases, but the Citi® Double Cash Card ups the ante with 2% cash back across the board.

However, the Amex Blue Cash Preferred® Card does have Citi beat when it comes to welcome offers, since the intro bonus is slightly larger.

Read more: Citi® Double Cash Card vs. Chase Freedom Unlimited®

The Chase Freedom Unlimited® provides excellent rewards for travel (5%), dining (3%), and drugstores (3%), as well as a blanket 1.5% back on everything else.

But thanks to their generous welcome offer, every category earns an additional 1.5% on all purchases (up to $20,000 spent in the first year). In other words, you won’t receive just 1.5% back on groceries and gas, but actually 3% in the first year.

Chase Freedom Unlimited® cardholders also receive 0% Intro APR on Purchases for 15 months (followed by the regular APR of 19.74% - 28.49% Variable). And there’s no annual fee.

Read more: Chase Freedom Unlimited® Review

Should You Get the Amex Blue Cash Preferred® Card?

If you know you’ll spend $3,000 during the first six months after opening your card, at least $125 every two weeks at U.S. supermarkets, and/or you’re looking for a credit card that offers excellent cash back for gas, the Amex Blue Cash Preferred® Card is a great option.

This said, keep in mind that your rewards come in the form of statement credit, and you’ll have an annual fee of $95.

How to Apply for the Amex Blue Cash Preferred® Card

First of all, you’ll need an excellent credit score to apply for the Amex Blue Cash Preferred® Card — 700 or higher. After that, the rest is a piece of cake.

You’ll need to provide some basic personal details first, such as your name, date of birth, and contact information. The application will also request your Social Security number and information about your income, so American Express can review your credit history.

American Express will then review your application and reach out to let you know if you’ve been approved.

The Bottom Line

Do you spend hundreds of dollars on groceries each month? What about gas for your work commute or road trips? If either (or both) of these sound like you, you may want to consider applying for the American Express Blue Cash Preferred® Card.

Keep in mind, however, that this cash back card does come with a $95 annual fee, it requires excellent credit to be approved, and your rewards come in the form of statement credit.

Featured image: Mix and Match Studio/Shutterstock.com

Read more:

• Are Amex Cards Worth It?
• Cash Back or Travel Rewards: Which Should You Choose?