Quick highlights
- Rewards rate: 6 percent cash back on U.S. supermarket purchases (up to $6,000 per year, then 1 percent); 6 percent back on select U.S. streaming subscriptions; 3 percent cash back on transit; 3 percent back on U.S. gas station purchases; 1 percent back on all other purchases
- Welcome offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months
- Annual fee: $0 intro annual fee for the first year, then $95
- Purchase intro APR: 0 percent for 12 months
- Balance transfer intro APR: 0 percent for 12 months
- Regular APR: 18.99 percent to 29.99 percent (variable)
Current welcome bonus
New Blue Cash Preferred cardholders can earn a $250 statement credit after spending $3,000 within the first six months of card membership. This is a slight decrease from the card’s previous offer of $350 in statement credits after the same spend in the same timeframe.
This change coincides with a new annual fee structure: New cardholders now get a $0 intro annual fee for the first year, after which the regular $95 annual fee applies. Plus, this offer still beats out many of the bonuses you’ll find on competing cash back cards and offers double the typical timeframe for reaching the bonus spending threshold — six months versus the usual three months.
Rewards rate
The Amex Blue Cash Preferred offers tiered cash back, which means you’ll earn rewards at different rates across multiple categories. Some tiered rewards cards impose spending caps on your high-earning bonus categories, reverting your rewards rate to 1 percent after spending a certain amount. Many cards cap high-tier rewards at $1,500 in purchases per quarter, but the Blue Cash Preferred card’s 6 percent U.S. supermarket category’s limit is $6,000 per year in purchases, then it drops to 1 percent. This gives you year-round flexibility to meet that cap on your terms rather than a quarterly restriction limiting you.
How you earn
Like other cash back cards from American Express, you earn cash back initially as “Blue Cash Reward Dollars,” which you can redeem for a statement credit.
You’ll earn 6 percent cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1 percent) and on select U.S. streaming subscriptions, including Netflix, Hulu, Prime Video and Spotify.
You’ll also earn 3 percent cash back at U.S. gas stations and transit (including taxis or ride-shares, parking, tolls, public transit, etc.) as well as 1 percent cash back on all other purchases.
These high-earning categories have the potential to reap significant rewards since they’re diverse enough to cover a sizable portion of your day-to-day expenses. In fact, if you spend at least $132 each month at U.S. supermarkets, you should earn enough rewards to cover your annual fee.
You can then take advantage of your card’s flexibility and create more opportunities to maximize your cash rewards. Along with its rewards at U.S. supermarkets and gas stations, two categories that most cardholders spend heavily in, the Blue Cash Preferred card may help you earn bonus rewards with the Amex Offers program. Amex Offers are limited-time deals you can activate in your account to earn extra cash back or Membership Rewards points on purchases from participating retailers, such as Hulu or Uber.
How to redeem
Unfortunately, the Blue Cash Reward Dollars you earn don’t provide many redemption options. However, cash back (unlike rewards points and miles) is an incentive system strengthened by simplicity. You can redeem rewards for a statement credit, gift cards ($25 minimum) or merchandise.
Although you can’t redeem your cash back as a gift card, direct deposit or check, redeeming for a statement credit is the most versatile rewards option since it can cover your balance directly.