Blue Cash Preferred® Card from American Express Review 2024

While many cash back credit cards offer bonus rewards on groceries, few cards come anywhere close to the card_name. This card offers a whopping 6% cash back on up to $6,000 of annual spending at U.S. supermarkets and on select U.S. streaming subscriptions. Cardholders also earn 3% cash back at U.S. gas stations and on transit purchases, plus 1% cash back on all other purchases.

The high earning rates give the card a powerful punch when it comes to maximizing rewards on everyday spending and bills. There is a annual_fees annual fee, but it's waived the first year.

TIME’s Take

Due to the stellar bonus earning rates on the card_name, you can quickly maximize your rewards on everyday spending and bills. That said, reward caps limit its potential, especially when it comes to grocery spending. The 6% cash back on up to $6,000 in spending at U.S. supermarkets per year (then 1% back), only works out to $500 in monthly spending on food and household supplies. That's not a big grocery budget to work with, as most families spend a lot more than that over a 12-month period.

Once you’ve reached the bonus maximums, the regular rewards rate of 1% cash back that applies is pretty disappointing. Of course, the bonus rewards on U.S. gas station and transit purchases can help, as can the card's welcome bonus and other benefits like the annual $84 Disney Bundle credit.

Blue Cash Preferred® Card from American Express: Pros & cons

Who is the card for?

The card_name is clearly targeted at families with big grocery and gasoline bills. But because of the requirement of having good-to-excellent credit, not everyone can qualify.

If you’re looking for a generous welcome bonus, the card_name delivers. New cardholders will bonus_miles_full. You'll earn hundreds of dollars in rewards if you can meet this requirement and spend to the cap on the 6% cash back categories. The welcome offer also waives the first year’s annual_fees annual fee.

It’s important to note that the 6% earning rate on select U.S. streaming subscriptions can be quite lucrative, due to the number of streaming platforms included. American Express has a long list of eligible streaming platforms on its website, including options like Amazon Music Unlimited, Apple Music, Disney+, Hulu, Kindle Unlimited, Netflix, YouTube Premium, YouTube TV, and more.

Unfortunately, the card_name offers fewer redemption options than many competing cards. Your only option is to receive Reward Dollars, which can only be redeemed for statement credits.

Features

The card_name has some additional benefits that add to its value. These include:

• $84 Disney Bundle credit: Cardholders automatically get a $7 monthly statement credit when they use their card to purchase a monthly subscription (auto-renewing) of $9.99 or more to the Disney Bundle, or any other monthly subscriptions or add-ons purchased at DisneyPlus.com, Hulu.com, or Plus.espn.com in the U.S.
• Global Assist hotline¹: Cardholders can call into this hotline for emergency assistance with medical or legal referrals, translation services, and more.
• Intro APR: Cardholders automatically get intro_apr_rate,intro_apr_duration, followed by a reg_apr,reg_apr_type.

The fine print

The card_name comes with a standard set of potential fees and charges, including the following:

• Balance transfers: A 0% intro APR offer applies to purchases and balance transfers. If you transfer a balance, there is a balance transfer fee of 3% of the amount transferred (minimum $5)
• Carrying a balance: After the intro offer expires, all remaining balances are charged a variable APR of 19.24% to 29.99%.
• Cash advances: Using this card for a cash advance can become expensive in a hurry. There is an upfront charge of 5% (minimum $10), and a cash advance APR of 29.99% with no grace period.
• Late payments: Both late and returned payments can trigger a fee of up to $40.
• Foreign transaction fees: This card charges a 2.7% foreign transaction fee, so it's not the best option for international travel.

Additional hidden perks

This credit card also has a few built-in consumer protections. These include:

• Purchase protection²: Automatically receive coverage for damage or theft for eligible items purchased with the card for up to 90 days. This coverage is worth up to $1,000 per occurrence and up to $50,000 per calendar year.
• Return protection³: This coverage can help you get reimbursed for items within 90 days of the purchase date when the merchant won't accept them back. This coverage is worth up to $300 per item and up to a maximum of $1,000 per year per account.

What could be improved?

In addition to the bonus-rewards caps on grocery spending, there are a few other notable downsides to be aware of. The first is that you can only redeem your rewards for statement credits. This is a major disadvantage compared to other cash back credit cards that let you use rewards for gift cards, merchandise, travel, and more.

Aside from that, it's worth noting that many other cash back credit cards offer 0% APR on purchases and balance transfers for a longer timeline. Choosing a card with a longer intro APR offer can help when it comes to debt consolidation and avoiding interest on new purchases for as long as possible.

Card alternatives

Bottom line

The card_name is a solid choice if you want to maximize rewards on U.S. supermarket spending and don't mind redeeming your rewards for statement credits. Just remember that the bonus-rewards cap will limit your cash back potential. You may want to have another card handy that earns more than 1% cash back after you hit the annual $6,000 spending threshold.

Frequently asked questions (FAQs)

Is the card_name worth it?

The card_name is worth it for consumers who spend a lot at U.S. supermarkets and U.S. gas stations, as well as on popular subscription services. This is especially true during the first year when the annual fee is waived.

Is the card_name hard to get?

This card is geared toward consumers with good-to-excellent credit, so not everyone can qualify.

What is the credit limit on the card_name?

American Express does not disclose a minimum or maximum credit limit for this card. Instead, it says your credit limit will be assigned based on your income, credit history, and other factors.

What are the benefits of the card_name?

In addition to the welcome offer and high earning rates for bonus spending categories, cardholder benefits include an annual credit for the Disney Bundle, purchase protection, return protection, and an intro APR offer for purchases and balance transfers.

For rates and fees of the card_name, please visit this URL.

¹Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Card Members are responsible for the costs charged by third-party service providers.

²Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

³Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details.