Blue Cash Preferred® Card from American Express Review

Blue Cash Preferred from American ExpressNot many credit cards can match the cash back earning potential that the Blue Cash Preferred® Card from American Express has to offer. With cash back opportunities in popular categories: gas stations, supermarkets, and select department stores in the United States – this card has a lot of appeal.

Let’s take a closer look at the great features that the Blue Cash Preferred® Card from American Express can offer you:

Card Details Summary:

  • $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) – that means spending $60 a week at U.S. supermarkets could earn over $180 back per year.
  • 3% cash back at U.S. gas stations and select U.S. department stores, 1% back on other purchases.
  • Low intro APR: 0% for 12 months on purchases and balance transfers, then a variable rate, currently 14.24% to 25.24%.
  • Expanding merchant acceptance: Over 1 million more places in the U.S. started accepting American Express® Cards in the last year.
  • $95 annual fee
  • Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • Terms Apply.

Credit Type Needed: An Excellent or Good credit score is required to be considered for approval. A good credit score is typically starts around 680.

0% Intro APR: The Blue Cash Preferred® Card from American Express offers a 0% introductory APR for 12 months for those wanting to make a balance transfer or a large purchase. After the introductory APR, the regular APR rate for purchases and balance transfers of 14.24%-25.24% variable will apply. The ongoing APR rate that you receive will depend on your credit worthiness.

Balance Transfer: Balance transfers must be requested in the first 60 days of account opening. There is a $5 or 3% fee of the amount transferred, that does apply to any balance transferred.

To transfer a balance, the request must meet certain qualifications. Your transfer will not process if the transfer would be less than $100, the transfer would cause you to exceed your limit, or if the transfer exceeds 75% or $7,500 (whichever is less). Additional terms may apply, please refer to card application for additional details.

Sign-up Bonus: Receive a $200 statement credit introductory bonus after spending at least $1,000 on purchases within your first 3 months of account opening.

The $200 statement credit will be applied within 6-8 weeks after your account meeting the spend threshold. Other terms and conditions may apply.

Earning Cash Back:  With the Blue Cash Preferred® Card from American Express, there are no rotating categories to keep an eye out for – the spend categories are fixed in popular categories.

Earn 6% cash back at supermarkets in the United States – on purchases up to $6,000 per year. After you reach $6,000 in purchases at supermarkets, then your earnings rate will drop to 1% cash back.

Earn 3% cash back at gas stations and select department stores in the United States, with 1% on other purchases.

This card is a perfect way to earn cash back on purchases you make everyday.

Cash Back Breakdown: Cash back will be earned on eligible purchases, and come in the form of Blue Cash Reward Dollars. Reward dollars can be redeemed in increments of 25, whenever your balance is at 25 or more. Reward dollars cannot be used to pay your minimum amount due.

Reward dollars are calculated based on a percentage of the dollar amount of your eligible purchases during each billing period (Either 6 percent, 3 percent, or 1 percent – depending on purchase type). Cash back percentages are based on a merchant code – please see terms for additional details.

Added Benefits: There are many service and protection benefits that come with having an American Express Blue Cash Preferred® Card – let’s take a closer look at a few of these:

Amex® Mobile App: Available on iOS 9.0+ and Android™ 4.4+: The Amex® mobile app can help you stay on top of your spending, receive real time alerts, save with Amex Offers, and more.

Year-End Summary: Available in January, an online year-end summary will be available for charges posted to your account from January 1st through December 31st of the previous year.

Shop Runner: Receive a complimentary membership from American Express to ShopRunner. A membership to ShopRunner normally retails $79 annually. With ShopRunner, get 2-day shipping from over 140 online stores and 1,000+ brands – for free.

To receive the ShopRunner benefits, you will need to verify your eligibility at www.shoprunner.com/americanexpress and create a ShopRunner membership account. Terms and Conditions may apply.

Lowest Hotel Rates Guarantee: When booking a qualifying prepaid hotel room on amextravel.com – if you find the same room with same booking info (dates, amount of people staying, etc.) for a lower price online before taxes and fees, you will be refunded the difference. To receive the difference, the claim must be submitted before the date of check-in.

Roadside Assistance Hotline: Available 24/7, the Roadside Assistance Hotline will be there to assist you with sending a tow operator or a locksmith to assist you in an emergency situation.

Purchase Protection: Purchase protection from AMEX will help cover your new purchases for up to 90 days after purchase– up to a maximum of $1,000 per occurrence and not to exceed $50,000 per card member account in a calendar year. Additional Terms and Conditions Apply.

Extended Warranty Protection: Receive the ability to extend the time period of a U.S. manufacturer’s warranty by an extra year –on eligible warranties of one to five years. Coverage is limited to a max of $10,000 per occurrence; not to exceed $50,000 per card member account per calendar year. Additional Terms and Conditions may apply.

Interest Rates and Fees: The majority of credit cards in the marketplace come with various rates and fees associated with their product. Let’s take a look at the rates and fees that come along with having the Blue Cash Preferred® Card:

Purchase Introductory Rate: With this card, you’ll receive 0% for the first 12 months on purchases.

Balance Transfer Introductory Rate: Receive an intro rate of 0% for the first 12 months on balance transfers. If you would like to transfer a balance to this card, the transfer must be requested within the first 60 days of account opening.

APR for Purchases and Balance Transfers:  After the intro rate has expired, an ongoing APR of 14.24%-25.24% variable will apply. The ongoing APR rate you receive will depend on your credit history.

APR for Cash Advances: Cash Advances come with an APR of 26.49% variable

Penalty APR: An APR of 29.99% variable, will apply if: you make one or more late payments, OR if your bank returns your payment.

If a penalty APR is applied to your account, it will remain for a minimum of 6 months. After that first 6 months, your account will be then be reviewed by American Express once every 6 months to see if the penalty rate can be removed. The penalty APR will not be lifted until you have made consistent timely payments and no payments have been returned.

Plan Fee: Please see terms and conditions for additional information.

Annual Fee: $95

Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater

Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater

Foreign Transaction Fee: A 2.7% fee of each transaction after conversion to U.S. dollars will apply for transactions made outside the United States.

Late Payment Fee: If you are late, a fee of Up to $38, will apply. Please note, if you pay late, the penalty APR rate will kick in.

Returned Payment Fee: If your payment is returned, a fee of Up to $38, will apply.  Please note, if your payment is returned, the penalty APR rate will kick in.

Overlimit Fee: There is no additional fee for going over your limit, at this time.

Additional Rate and Fee Details

Before submitting your application for any credit card, it is important to read and understand the terms and conditions – so you won’t be surprised later on. 

Our Take: The main downside to this card is the $95 annual fee, but the earnings potential can help to offset this cost.  The Blue Cash Preferred® does come with a 2.7% foreign transaction fee – and the higher cash back rates (6% and 3%) only apply to locations in the United States. So, if you happen to be an avid international traveler – you can find a better cash back credit card to meet your needs.

Overall, the Blue Cash Preferred® Card from American Express offers a great opportunity to earn cash back on everyday purchases. With earnings potential of 6%, 3%, or 1% cash back depending on where you use your card – this credit card is a strong contender in the market today.