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Key takeaways
- We like that the Blue Cash Preferred® Card from American Express earns 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services. This is one of the highest cashback rates available today.
- We recommend taking advantage of this credit card’s generous welcome offer. You can earn a $250 statement credit after spending $3,000 on purchases in the first 6 months.
- The American Express Blue Cash Preferred® comes with intro APR offers on purchases and balance transfers. We recommend using these offers to manage a large purchase or pay down existing credit card debt.
- We think the potential cashback earnings and additional benefits and perks you get with the American Express Blue Cash Preferred® easily offset its annual fee. To have this card, you pay a $0 intro annual fee for the first year, $95 per year thereafter (terms apply).
- One drawback is the cap on earning 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services. If you exceed this cap, we recommend pairing this card with the Chase Freedom Unlimited® to earn an elevated base cashback rate.
Who should get the Blue Cash Preferred® Card from American Express?
We recommend the American Express Blue Cash Preferred® to anyone who wants to earn a significant amount of cashback rewards on routine purchases.
This card, which was launched in 2011, can help you earn rewards fast with 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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.
We consider the American Express Blue Cash Preferred® one of the best credit cards for groceries thanks to the high cashback potential it offers.
Households spend an average of $5,703 at grocery stores, according to the Bureau of Labor Statistics. If you paid this amount with your American Express Blue Cash Preferred® at U.S. supermarkets, you would earn a whopping $342.18 in cashback rewards compared to a $0 intro annual fee for the first year, $95 per year thereafter (terms apply).
That being said, we don’t like that the American Express Blue Cash Preferred® has a cap on the elevated cash back you can earn at U.S. supermarkets. You earn 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services.
If you regularly spend more than that limit, we recommend using this card in tandem with another Amex rewards card within the Amex Trifecta to maximize your rewards. We also recommend having a card such as the Chase Freedom Unlimited® to earn elevated base cash back without worrying about caps or categories.
Card basics
| Card type | Cash back |
| Credit card issuer | American Express |
| Annual fee | $0 intro annual fee for the first year, $95 per year thereafter (terms apply) |
| Welcome bonus | Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months |
| Reward rate | 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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 |
| Recommended credit score | Excellent, Good |
| Foreign transaction fee | 2.7% |
| Intro APR | 0% intro APR on purchases for 12 months, then 19.24% - 29.99% Variable
0% intro APR on balance transfers for 12 months, then 19.24% - 29.99% Variable |
Why we like the American Express Blue Cash Preferred®: benefits and perks
- Strong welcome offer: We like the quick value this card’s welcome offer helps you earn. You can earn a $250 statement credit after spending $3,000 on purchases in the first 6 months.
- Rewards that add up fast: You can earn 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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.
- Statement credits for the Disney bundle: We think many people can benefit from earning $7 back each month in the form of a statement credit after spending $9.99 or more each month on an eligible subscription (subject to auto renewal) with this card. Enrollment is required for this benefit.
- Intro APR offers: With this card, you'll have the opportunity to pay down large purchases and balance transfers over time. You'll have 0% intro APR on purchases for 12 months, then 19.24% - 29.99% Variable and 0% intro APR on balance transfers for 12 months, then 19.24% - 29.99% Variable.
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When I first qualified for the Amex Blue Cash Preferred, I used it to put a $5,000 down payment on my new car. This counted as a purchase at my dealership, which was great for me since it meant I used this card’s intro APR offer on purchases. This helped me pay this balance off over 12 months instead of using a lump sum of my cash for the down payment.
- Purchase protection: Nothing is worse than dropping and breaking your new phone. That’s why we like that the American Express Blue Cash Preferred® offers purchase protection. That means you’re covered for up to 90 days after making a qualified purchase for up to $1,000 per occurrence, up to $50,000 in a calendar year.
- Car rental insurance: Cardholders receive secondary coverage on car rental loss and damage insurance. Just be sure to use your card to pay for your car rental and turn down the rental company’s insurance.
What we don’t like about the American Express Blue Cash Preferred®: drawbacks
- Annual fee: The American Express Blue Cash Preferred® has a $0 intro annual fee for the first year, $95 per year thereafter (terms apply). We think this card’s benefits easily offset its annual fee, but we recommend taking this cost into account. Consider the Blue Cash Everyday® Card from American Express to earn elevated cash back with a $0 annual fee (terms apply).
- Capped cash back on certain categories: We don’t like that this card caps how much you can earn with its 6% cash back. This rate applies at U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services. That’s why we recommend pairing this card with the Chase Freedom Unlimited® or the Blue Cash Everyday® Card from American Express to earn elevated rewards beyond this cap.
Maximizing your cash back with the American Express Blue Cash Preferred®
Potential earnings in years one and two
Here's a look at how your cash back can add up with the American Express Blue Cash Preferred®.
Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.
Year one earnings: $1,218 in the form of a statement credit
Year two earnings: $873 in the form of a statement credit
These values are based on the FinanceBuzz Credit Card Rewards Valuation Model, which takes a look at points earned via spending, the welcome bonus, and the annual fee.
Best ways to earn
The American Express Blue Cash Preferred® offers a higher rewards rate on routine purchases than you’d get with other credit cards. Here's a look at what you'll earn:
| Categories | Rewards rate |
| U.S. supermarkets (for first $6,000 per year, after that 1%) and on select U.S. streaming services | 6% |
| U.S. gas stations and eligible transit | 3% |
| All other eligible purchases | 1% |
With the American Express Blue Cash Preferred®, you can earn 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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.
Eligible U.S. supermarkets for the 6% cashback rate include but are not limited to:
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While these supermarkets cover many popular options, we couldn’t use this card to earn 6% cash back at certain stores outside this list. Stores that aren’t eligible include:
- Specialty stores: Such as bakeries, butchers, cheese shops, fish markets, and liquor stores,
- Superstores: Such as Target or Walmart
- Warehouse clubs: Such as Costco or BJ's Club
- Convenience stores: Such as 7Eleven
- Meal-kit delivery services: Such as Blue Apron, Freshly, and Hello Fresh
Maximizing your redemptions
When you use your card, you earn cash back in the form of Blue Cash Rewards Dollars. You can redeem these dollars for statement credits or at Amazon.com checkout. Keep in mind that you can’t use your Blue Cash Rewards Dollars to pay your minimum monthly payment; you can only use it as a statement credit after paying your minimum.
Other cards to consider
While we like the value that the American Express Blue Cash Preferred® offers, we understand that its annual fee may not be for everyone.
If that’s the case, consider the Chase Freedom Unlimited® or the Blue Cash Everyday® Card from American Express.
Chase Freedom Unlimited®
The Chase Freedom Unlimited is one of our favorite cash back credit cards. It has a $0 annual fee and helps you earn 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases.
This makes it a great credit card for everyday use. It also has no category-specific caps and comes with the following intro APR:
- 0% intro APR on purchases for 15 months, then 20.49% - 29.24% Variable APR
- 0% intro APR on balance transfers for 15 months, then 20.49% - 29.24% Variable APR
Learn more in our Chase Freedom Unlimited® review.
Blue Cash Everyday® Card from American Express
The Blue Cash Everyday® Card from American Express is a great card to go hand in hand with the American Express Blue Cash Preferred®.
It has a $0 annual fee (terms apply), and you can earn 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%); and 1% cash back on other eligible purchases.
Additionally, you can benefit from these intro APR offers:
- 0% intro APR for 15 months on purchases, then 19.24% - 29.99% Variable APR
- 0% intro APR for 15 months on balance transfers, then 19.24% - 29.99% Variable APR
Learn more in our Blue Cash Everyday® Card from American Express review.
Cash Back at U.S. Supermarkets
Why We Like It
Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
See how these cards compare:
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Chase Freedom Unlimited®
- Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year)
- Bonus rewards on eligible travel, dining, and drugstores
- No annual fee
- Intro APR on purchases and balance transfers
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Blue Cash Everyday® Card from American Express
- Earn a $200 statement credit after spending $2,000 in purchases in the first 6 months
- Introductory APR offer for purchases and balance transfers
- 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%)
- Annual fee of $0
- See rates and fees | Terms Apply
American Express Blue Cash Preferred® FAQ
Is the American Express Blue Cash Preferred® worth it?
We recommend the Amex Blue Cash Preferred® as one of the best cash back credit card for everyday purchases. It earns 6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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 has a $0 intro annual fee for the first year, $95 per year thereafter (terms apply).
What credit score do you need for the American Express Blue Cash Preferred®?
You'll likely need a good to excellent credit score in order to get approved for the American Express Blue Cash Preferred®. According to FICO, a good credit score falls within the 670-739 range.
Is the American Express Blue Cash Preferred® a charge card?
While certain American Express cards were charge cards — which means their balance had to be paid in full each month — the American Express Blue Cash Preferred® is a credit card. It has a revolving line of credit, and you’ll have a minimum monthly payment, so you can spread out the cost of purchases over the course of several months if needed.
How does the Blue Cash Preferred® Card from American Express fare against the Blue Cash Everyday® Card from American Express?
While the American Express Blue Cash Preferred® does have a $0 intro annual fee for the first year, $95 per year thereafter, it offers higher rewards than the Blue Cash Everyday® Card from American Express. With the American Express Blue Cash Everyday®, you'll earn up to 3% cash back rather than up to 6% cash back.
With the Blue Cash Everyday® Card from American Express — which has a $0 annual fee — you’ll earn 3% cash back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%); and 1% cash back on other eligible purchases.
What U.S. supermarkets can I earn 6% cash back at with the American Express Blue Cash Preferred®?
The American Express Blue Cash Preferred® eligible supermarket list includes:
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Specialty shops, superstores (such as Target and Walmart), warehouse clubs (such as Costco), and Meal-kit delivery services (such as Hello Fresh) are not eligible for the 6% cashback rate.
What U.S. streaming services are eligible for the 6% cashback rate with the American Express Blue Cash Preferred®?
As of May 2020, the following U.S. streaming subscription services qualify for the 6% cashback rate:
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What do I need to know about adding an authorized user to my American Express Blue Cash Preferred® account?
The American Express Blue Cash Preferred® authorized user policy is fairly straightforward. You can add an additional card for anyone who is 13 years old and up, and you’ll earn the same cashback rate on their purchases that you do on your own transactions.
American Express allows you to set spending limits on authorized users. If you don’t set a limit, the authorized user can charge up to your total credit limit.
American Express Blue Cash Preferred® review: bottom line
We think the Blue Cash Preferred® Card from American Express is an excellent choice for those looking to earn high cash back rewards on everyday spending categories. This card offers significant earning potential, and it also helps you earn a $250 statement credit after spending $3,000 on purchases in the first 6 months.
However, if it has a $0 intro annual fee for the first year, $95 per year thereafter and a cap on the elevated rewards it earns at U.S. supermarkets. That’s why we recommend the Chase Freedom Unlimited® or Blue Cash Everyday® Card from American Express as two cash back credit cards that you can use in place of the Amex Blue Cash Preferred or even pair them with it.
Cash Back at U.S. Supermarkets
Current Offer
Earn a $250 statement credit after spending $3,000 on purchases in the first 6 months
Annual Fee
$0 intro annual fee for the first year, $95 per year thereafter
Rewards Rate
6% cash back at U.S. supermarkets (for first $6,000 per year, after that 1%) and 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
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