Money Analysed

Maximizing Cash Back: A Comprehensive Guide to the Blue Cash Preferred Card from American Express

Credit cards have become an integral part of most people’s financial management strategies. Whether it’s for everyday expenses or luxury purchases, credit cards offer a convenient way to pay for purchases while earning rewards.

One such card is the Blue Cash Preferred Card from American Express, known for its outstanding cashback rewards. In this article, we’ll do a deep dive into the Blue Cash Preferred Card, discussing its rewards program, suitability for various spending habits, card basics, fees, and other pertinent details.

So, let’s get started!

Rewards Program:

One of the most significant factors that make the Blue Cash Preferred Card so attractive is its reward program. This card has an impressive 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).

Additionally, cardholders get 6% cash back on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases. This card is perfect for those who spend a lot on routine purchases, household expenses, groceries, recurring monthly expenses, and high monthly food costs.

Additionally, it’s an ideal addition to the Amex Trifecta, which includes the American Express Gold Card and The Platinum Card from American Express, for maximum rewards accumulation. Suitability for Different Spending Habits:

The Blue Cash Preferred Card is suitable for a wide variety of spending habits.

However, it’s best suited for individuals who frequently shop at U.S. supermarkets and spend a lot on streaming services. It’s also an excellent option for individuals looking to save money on gas and transportation.

This card is an ideal fit for those with excellent or good credit scores. It requires an excellent credit score for approval, but it’s possible to qualify with a good credit score if you meet other criteria.

Card Basics and Fees:

The Blue Cash Preferred Card from American Express is a credit card that comes with a $250 statement credit after spending $1,000 in purchases within the first three months of opening the account. It has an annual fee of $95, but cardholders can benefit from a $0 intro annual fee for the first year.

This card offers a 6% cash back on U.S. supermarkets which is capped at $6,000 per year, 3% cash back on U.S. gas stations and eligible transit, and 1% cash back on other eligible purchases. It also provides new cardholders a 0% intro APR on purchases for the first 12 months, followed by a variable APR of 13.99% to 23.99%.

The card also has a 0% intro APR on balance transfers for the first 12 months, but there is an upfront fee of 3% of the amount transferred. The Blue Cash Preferred Card has a foreign transaction fee of 2.7%, making it less than ideal for international travel.

Final Thoughts:

The Blue Cash Preferred Card from American Express is an excellent choice for individuals who spend a lot on groceries, streaming services, gas, and transportation. It rewards cardholders generously for their usage and offers great benefits like a welcome offer, intro APRs, and other benefits.

That being said, the card comes with a $95 annual fee, making it less suitable for individuals who don’t spend enough to justify the fee. Additionally, those who prefer to travel internationally may want to consider a card without foreign transaction fees.

All in all, the Blue Cash Preferred Card is a phenomenal option for anyone looking to maximize their cashback rewards. It’s a great fit for those with good to excellent credit scores and who spend a significant amount on routine purchases.

Benefits and Perks:

The Blue Cash Preferred Card from American Express is one of the most rewarding cashback credit cards available. One of the most significant benefits of this card is its strong welcome offer.

After you spend $1,000 on purchases within the first three months of opening the account, you’ll receive $250 in statement credits. This offer is an excellent way to fast track rewards accumulation and get more value out of your spending.

Additionally, the Blue Cash Preferred Card provides generous and fast rewards accumulation. You’ll earn a whopping 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, making it easy to earn cashback rewards on everyday spending.

Add to that the 6% cash back on select U.S. streaming services, 3% cash back at U.S. gas stations and on eligible transit, and 1% cash back on other eligible purchases, and it’s clear that this card is a true cashback powerhouse. Furthermore, if you need to pay down large purchases or balance transfers, the Blue Cash Preferred Card offers a 0% intro APR on both for the first 12 months.

After that, the variable APR will be 13.99% to 23.99%. This intro APR can be a lifesaver if you need to make a big purchase or transfer a balance from another credit card.

The Blue Cash Preferred Card also comes with secondary coverage for car rental loss and damage insurance when you use your card to pay for the rental. This coverage can potentially save you hundreds of dollars on car rental insurance.

However, keep in mind that you’ll need to decline the rental company’s collision damage waiver for the coverage to apply. Another great feature of the Blue Cash Preferred Card is its purchase protection.

If an eligible item is damaged or stolen within the first 90 days of purchase, you may be eligible for a refund of up to $1,000 per occurrence and a maximum of $50,000 in a calendar year. Finally, if you’re a fan of the Disney Bundle, which includes Disney+, Hulu, and ESPN+, the Blue Cash Preferred Card offers statement credits for eligible subscriptions.

You can receive up to $7 back per month on your Disney Bundle purchases, making it even more affordable to enjoy this popular streaming package. Drawbacks:

As with any credit card, there are some drawbacks to the Blue Cash Preferred Card.

One of the most significant drawbacks is its annual fee of $95. While the card does come with a $0 intro annual fee for the first year, this is still not a no-fee card.

You’ll need to consider whether the card’s benefits and perks justify the annual fee before you apply. Another drawback is the card’s foreign transaction fee of 2.7%.

If you frequently make purchases while traveling abroad, these fees can add up quickly. If you’re a frequent traveler, especially internationally, it might be worth looking into a card without foreign transaction fees.

Conclusion:

The Blue Cash Preferred Card from American Express is an incredibly rewarding cashback credit card that’s well-suited for individuals who frequently spend on U.S. supermarkets, streaming services, and gas stations. It comes with a generous welcome offer and fast rewards accumulation, as well as a 0% intro APR for balance transfers and large purchases, car rental insurance coverage, purchase protection, and statement credits for eligible subscriptions.

However, the card’s annual fee and foreign transaction fee are two significant drawbacks that should be taken into consideration before applying. It’s essential to weigh the card’s benefits and perks against its fees to determine whether it’s the right choice for your spending habits and financial goals.

Maximizing Cash Back with the Blue Cash Preferred Card from American Express:

If you’re considering the Blue Cash Preferred Card from American Express, one of the questions you might be asking is, “how much cashback can I really earn?”. The answer depends on how much you spend and where you spend it.

According to the FinanceBuzz Credit Card Rewards Valuation Model, here’s an estimation of how much you could earn in years one and two with the Blue Cash Preferred Card:

In year one, assuming you spend $1,000 per month on U.S. supermarkets, $200 per month on U.S. gas stations and eligible transit, and $200 on other eligible purchases, you would earn a total of 45,200 points, which is equal to $452 cash back. This is factoring in the welcome bonus, annual fee, and statement credit that come with the card.

In year two, assuming you spend the same amount in each category as in year one, you would earn a total of 28,000 points, which is equal to $280 cashback. This is without factoring in the welcome bonus, which is only available in the first year.

Of course, everyone’s spending habits are different, and your earnings potential may vary. However, knowing how much you could potentially earn can help you decide whether the Blue Cash Preferred Card is worth it for you.

The best ways to earn cashback rewards with the Blue Cash Preferred Card are by utilizing its highest rewards categories, including U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases. U.S. supermarkets include select retailers like Gristedes, Foodtown, Meijer, Shoprite, Stop and Shop, Trader Joe’s, Vons, Whole Foods, and Winn-Dixie.

Meanwhile, eligible streaming services include Amazon Music Unlimited, Apple Music, Apple TV+, AT&T Now, Audible, CBS All Access, Disney+, ESPN+, Fubo TV, HBO Now, Hulu, iHeartRadio, Kindle Unlimited, Luminary, MLB.TV, NBA League Pass, Netflix, NHL.TV, Pandora, Prime Video, Showtime, Sling TV, SiriusXM Streaming and Satellite, Spotify, Stitcher, YouTube Music Premium, YouTube Premium, and YouTube TV. By making most of your routine purchases in these categories using the Blue Cash Preferred Card, you can maximize your cash back rewards.

Amex Blue Cash Preferred FAQs:

Is the Amex Blue Cash Preferred worth it? The Amex Blue Cash Preferred is a fantastic cashback rewards card that can be a great option if you want to earn rewards on everyday purchases.

However, it comes with an annual fee of $95, which may not be worth it for some individuals. If you’re looking for a fee-free cashback rewards card, the Capital One Quicksilver Cash Rewards Credit Card may be a better value.

What credit score do I need for the Amex Blue Cash Preferred? You’ll likely need a good to excellent credit score, around 670 or higher, to be approved for the Amex Blue Cash Preferred.

American Express typically looks at your FICO score when deciding whether to approve your application. Is the Amex Blue Cash Preferred a charge card or credit card?

The Amex Blue Cash Preferred is a credit card, not a charge card. Certain American Express cards, like The Platinum Card from American Express, are charge cards that require the balance to be paid in full each month.

With the Amex Blue Cash Preferred, you’ll make a monthly payment based on your credit card statement balance. How does the Blue Cash Preferred Card compare to the Blue Cash Everyday Card?

The Blue Cash Preferred Card offers higher cash back rewards rates than the Blue Cash Everyday Card, but it comes with a $95 annual fee. The Blue Cash Everyday Card has a $0 annual fee but earns lower cash back rates.

The Blue Cash Everyday Card is a good choice if you don’t spend enough on groceries, gas, and streaming services to justify the Blue Cash Preferred Card’s annual fee. Which U.S. supermarkets and streaming services are eligible for rewards?

U.S. supermarkets that are eligible for rewards include select retailers like Gristedes, Foodtown, Meijer, Shoprite, Stop and Shop, Trader Joe’s, Vons, Whole Foods, and Winn-Dixie. Eligible streaming services include Amazon Music Unlimited, Apple Music, Apple TV+, AT&T Now, Audible, CBS All Access, Disney+, ESPN+, Fubo TV, HBO Now, Hulu, iHeartRadio, Kindle Unlimited, Luminary, MLB.TV, NBA League Pass, Netflix, NHL.TV, Pandora, Prime Video, Showtime, Sling TV, SiriusXM Streaming and Satellite, Spotify, Stitcher, YouTube Music Premium, YouTube Premium, and YouTube TV.

Can I add an authorized user to my Amex Blue Cash Preferred Card? Yes, you can add an authorized user to your Amex Blue Cash Preferred Card.

Additional card members must be 13 years old and up and will receive the same cash back rate as the primary cardholder. You can also set spending limits for each authorized user to help manage your total credit limit.

Other Cards to Consider:

While the Blue Cash Preferred Card from American Express is an excellent cashback rewards card, it’s not the only option out there. Here are two other cards to consider:

Chase Freedom Unlimited:

The Chase Freedom Unlimited is a no-annual-fee card that offers a tiered cashback rewards program.

Cardholders earn 5% cash back on Chase travel purchased through Ultimate Rewards, 3% cash back on drugstore purchases and dining at restaurants, and unlimited 1.5% cash back on all other purchases. Additionally, the card has a 0% intro APR on purchases for the first 15 months, followed by a variable APR of 14.99% to 23.74%.

One of the most significant benefits of the Chase Freedom Unlimited is its flexibility. Cardholders can redeem their rewards for cashback, travel, gift cards, or experiences.

The card also offers a welcome bonus of $200 after spending $500 on purchases in the first three months after account opening. If you’re looking for a no-annual-fee card with flexible rewards and a high cashback rate on dining and drugstore purchases, the Chase Freedom Unlimited could be an excellent choice.

Blue Cash Everyday Card from American Express:

Another option for those who want a no-annual-fee card is the Blue Cash Everyday Card from American Express. It has a tiered cashback rewards program similar to the Blue Cash Preferred Card but with lower cash back rates

Popular Posts