American Express Blue Cash Preferred Review USA
This article explains all you need to know about American Express Blue Cash Preferred.
American Express Blue Cash Preferred Features
* Earn 6% cash back at US supermarkets up to $6,000 annually; 1% thereafter.
* 6% cashback on streaming services Streaming services like Amazon Music and Amazon Video are also included. (*Excluding Amazon Prime)
* 3% cash back at US petrol stations
* Get 3% cash back on transit. Excludes cruises, airlines, and other “travel” categories.
* 1% cash back on everything else
* 0% APR for 12 months on purchases. Then, depending on your creditworthiness and other criteria, your APR ranges from 13.99 percent to 23.99 percent. This APR is based on the Prime Rate. (Rates)
* First year fee waived at $95
Get a $100 statement credit when you spend $2,000 in your first 6 months with Blue Cash Everyday. Plus, get 20% back at Amazon.com for 6 months, up to $150.
Benefits of Blue Cash
* 0% APR on new purchases for 15 months after approval for Blue Cash Preferred. Then, depending on your creditworthiness and other criteria, your APR will range from 13.99% to 23.99%. This APR is based on the Prime Rate. (Rates)
No annual fee and 3 percent cash back at US supermarkets for up to $6,000 in annual purchases. 2 percent cash back at US gas stations and certain US department stores (Rates and Fees)
Do you need either card?
The Welcome Bonus offers on both are excellent, especially if you’ve been eyeing one for the actual spending categories. Neither card earns Membership Rewards points; both get cash back. Despite the site’s name, I know many of you still value cash!
To be honest, I’d prefer the Blue Cash Preferred because it offers a greater welcome bonus, no annual charge for the first year, and you can convert it afterwards. You can also earn the bonus on each card once per lifetime.
The Blue Cash Preferred offers more first-year rewards potential, but requires a larger minimum spend to qualify for the promotional bonus.
Get the $150 bonus by spending $3,000 in the first six months, or about $500 each month. Furthermore, to maximize the 20% cash back advantage (up to $200), you must spend $1,000 on Amazon.com within six months of opening your account. That’s roughly $167 every month, which depends on your purchasing habits.
After six months, you can get $100 back if you spend $2,000, or $333 per month. To get the Amazon.com incentive, you’d need to spend $750 in the first six months, or roughly $125 per month.
The Blue Cash Preferred provides a stronger welcome offer, especially since the first year’s annual fee is waived. But keep in mind your budget. If your usual spending isn’t high enough to take advantage of the welcome incentive, you can gain more value from the Blue Cash Everyday.
Again, the Blue Cash Preferred offers better benefits than the Blue Cash Everyday.
With the Blue Cash Preferred, you can earn 6% cash back at US supermarkets up to $6,000 per year (then 1%), 6% on select US streaming services, 3% at US petrol stations and transit, and 1% on other eligible transactions.
The greater earning rate at US supermarkets can more than make up for the $95 annual cost. The 6 percent back at US supermarkets on the Blue Cash Preferred card is capped at $6,000 per year, or $500 per month. At that rate, only this category would award you $360.
To put that in perspective: 3% back on up to $6,000 spend in US supermarkets every year (then 1 percent back). If you spend $500 each month at US supermarkets, you’ll get $180 in cash back every year if you max out this bonus area.
In other words, even with the $95 annual cost (free for the first year), you may earn an extra $85 cash back on US supermarket purchases with the Blue Cash Preferred.
Also consider the cards’ additional bonus categories. However, the Blue Cash Preferred offers slightly more rewards on gas and transit (3 percent vs. 2 percent cash back with Blue Cash Everyday). The Blue Cash Preferred earns 6% back on select US streaming services. It gives 2% cash back at select department stores instead of streaming. These may not be enough to outweigh the 6% benefit at US stores, but they may influence your decision.
Both the Blue Cash Everyday and Blue Cash Preferred cards provide a variable APR and a purchase promotional incentive. Both offer 0% APR for 15 months, then 14.24 percent to 24.24 percent variable APR.
American Express Blue Cash Preferred: Conclusion
Thanks for taking the time to read this blog post on American Express Blue Cash Preferred.