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and are popular options in American Express’s arsenal of cash back credit cards. Both offer generous cash-back rewards on everyday spending, such as grocery and gas station purchases.
You won’t ever pay an annual fee with (Rates & Fees). For , the annual fee is (Rates & Fees). Still, it has a higher welcome offer, and you can earn more cash back, making the our top pick.
How the cards stack up
Take a look at this side-by-side comparison of both cards:
Welcome offer
cardholders . With , you’ll .
The offers more upfront, but you’ll need to spend roughly $500 monthly. If this seems like a stretch, you could be better off with the , as you’ll only need to spend $333 per month to get the welcome offer.
Rewards
In terms of earning potential, also takes the top spot. Cardholders earn 6% cash back at U.s> supermarkets (capped at $6,000 per year), 6% on select streaming subscriptions, 3% on U.S. gas. station and transit purchases, and 1% on all eligible purchases. Terms Apply.
offers 3% cash back on groceries, U.S. online retail purchases and purchases on gas at U.S. gas stations. Once you spend $6,000 in each category, the cash back earnings drop to 1% on all eligible purchases. Terms Apply.
Annual fee
Cardholders enjoy a annual fee for the first year with (Rates & Fees). However, this perk is short-lived. With , you won’t ever pay an annual fee (Rates & Fees).
could still be the better choice here. The annual fee after the first year breaks down to about $7.92 per month. If you enroll for The Disney Plus bundle or Equinox+ home workout program, the statement credits could easily cover the cost.
APR
The APR range is identical on both cards—. However, you’ll get a different introductory APR period for purchases and balance transfers. It’s for (Rates & Fees) and for (Rates & Fees), making the latter the winner of this category.
Foreign transaction fee
Both cards come with a foreign transaction fee of (Rates & Fees; Rates & Fees).
Foreign transaction fee winner: Tie
Additional perks
Cardholders receive significant added perks with either option, so it’s hard to identify a clear winner. Both cards offer:
- $7 monthly Disney Bundle credit. Enrollment Required.
- Car rental loss and damage insurance
- Emergency global travel assistance
- Exclusive access to American Express experiences
- Purchase protections
- Terms Apply.
With , you’ll also get a $10 statement credit each month when you use your card to pay for the Equinox+ membership. Or you can unleash your inner chef and purchase meal solutions from HomeChef.com to get a monthly statement credit of up to $15. Terms Apply.
Additional perks: Tie
Which card earns the most
Although you’ll pay an annual fee after the first year for , your earning potential outweighs the cost. To illustrate, here’s what you earn in each category by spending $500:
| Grocery or supermarket purchases | Streaming subscriptions | U.S. Gas station purchases | Transit purchases | U.S. online retail purchases | Total cash back | |
|---|---|---|---|---|---|---|
$30 | $30 | $15 | $15 | $5 | $95 | |
$15 | $15 | $15 | $5 | $15 | $55 |
Our pick
Why we recommend
If you find yourself in the grocery store often, you can rake in cash back with . Monthly spending of $500 per month equates to $360. Plus, you’ll earn 1% for supermarket purchases once you’ve spent $6,000 on the card.
Regarding the annual fee, the added perks and cash-back bonus categories make it easy for the card to pay for itself. And if you commute to and from work, the fuel or transit costs you incur mean even more cash back for you.
Why you would still opt for
is the better choice if you prefer a cash-back reward without an annual fee. It’s also ideal if your spending is on the lower end and you won’t quite reach the $6,000 threshold needed to maximize the 6% cash back bonus that comes with the .
Bottom line
The and are both solid options for low-cost cash-back rewards credit cards. However, the has the better welcome offer and can earn you the most if you’re able to capitalize on the 6% cash back. Be sure to analyze your spending patterns to determine which card is best for you.
For rates and fees of the card_name, please visit this URL.
For rates and fees of the card_name, please visit this URL.
Frequently asked questions (FAQs)
Can I have both and ?
It’s possible to have both cards at once. You’ll generally need good or excellent credit to qualify. Remember that you could be denied credit if you’ve recently applied for several other cards.
What are alternative cash-back credit cards?
American Express also offers the Cash Magnet Card with no annual fee. Other cash-back credit cards worth considering include , and the .
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