Amex Blue Cash Preferred Review
The Blue Cash Preferred® Card from American Express card is the bigger sibling to the Blue Cash Everyday® Card from American Express (review). The Blue Cash Preferred has a $95 annual fee, but in exchange, you get a more robust cash back earning potential with more categories and higher rates. In our Amex Blue Cash Preferred review we will take a look at the card perks, welcome offer and earning structure.
Blue Cash Preferred Welcome Offer
The welcome offer for the Blue Cash Preferred card is as follows:
- Earn $250 cash back after spending $3,000 within the first 6 months of card membership (Rates & Fees).
- The card has a $0 intro offer annual fee and then $95 a year after that.
American Express Application Rules You Should Be Aware Of
The Blue Cash Preferred card is a credit card and not a Pay Over Time card, so it counts towards Amex’s limit of five credit cards.
There is also a once per lifetime rule with American Express. That means if you have carried the card in the last 6 or 7 years you will not be eligible for the welcome offer. It does not matter when you last earned the welcome offer, this is based on when you last had an active card on your account.
If you are not eligible for the welcome offer for any reason then you will be informed at the time of application with the Amex Pop-up. This happens before the application is processed and it will give you a chance to cancel the application if you are not eligible for the welcome offer.
Blue Cash Preferred Earning Rate
The Blue Cash Preferred card earns bonus cash back in the following categories:
- 6% cash back on your first $6,000 of purchases per year at U.S. supermarkets (1x after that)
- 6% on select U.S. streaming subscriptions
- 3% cash back at U.S. gas stations and on transit (such as taxis/rideshare, parking, tolls, trains, and buses)
- The card also earns 1% cash back on all other purchases.
Keep in mind that Amex cash back do not convert into Membership Rewards points. This differs from Chase and Citi, where the cash back earned on some cards can be converted into Ultimate Rewards or ThankYou Points.
Like other cash back cards, the Blue Cash Preferred card does not offer many benefits or perks. However, the card does offer car rental loss and damage insurance. When you use your Blue Cash Preferred card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter, you can be covered for damage to or theft of the rental vehicle. Keep in mind that this coverage is secondary and does not include liability coverage
You can also get $7 back each month after using your card to spend $12.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required.
The card also gives you access to valuable Amex Offers. These are like coupons for certain stores or partners that can save you money on certain purchases. They need to be loaded to your card before using and can be found at the bottom of your American Express account login.
Amex Blue Cash Preferred Review: Our Analysis
The Blue Cash Preferred card is a great cash back card. The strong earning potential makes the $95 annual fee well worth it for those who spend enough on the card. Earning 3% cash back at U.S. gas stations puts this card among the best cash back credit cards for gas spend. 3% cash back for transit is also excellent.
The 6% back on your first $6,000 in spend each calendar year at U.S. supermarkets is the real show stopper though. People may be tempted by the no fee Blue Cash Everyday Card from American Express and the 3% back at U.S. Supermarkets on their first $3,000 in spend each calendar year. But that would only make sense if you spend $3166.66 or less each year at the grocery store ($95 / additional 3% in earnings). After that you would come out ahead using the Blue Cash Preferred.
The Blue Cash Preferred card is a great cash back card. The card’s robust earning potential can justify the $95 annual fee is you spend enough in the bonused categories. The newer addition of a $7 monthly credit towards a Disney Bundle streaming package that will cover the annual fee on its own. This is a card that you should consider only if you are over Chase 5/24 though.
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