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The Blue Cash Preferred® Card from American Express is geared toward folks who spend a lot on groceries, gas, and clothing – and like to earn cash back rewards.
Those are big expenses in most households, especially if you have a large family. The biggest deterrent is the card’s $95 annual fee (See Rates & Fees), which means you’ll have to spend at least enough to offset it each year to break even.
That said, you’ll earn a $200 statement credit after spending $1,000 on purchases in the first 3 months of account opening, so that more than covers the annual fee for a couple of years. And if you like the rewards setup, this card has one of the best returns in the most common spending categories.
That’s why we named it the best US supermarket credit card for cash back.
I’ll help you decide if it’s worth picking up!
Should You Apply for the AMEX Blue Cash Preferred Card?
Apply Here: Blue Cash Preferred® Card from American Express
Our review of the AMEX Blue Cash Preferred Card
And you’ll earn:
- 6% cash back at US supermarkets (up to $6,000 in purchases per calendar year, then 1% cash back)
- 3% cash back at US gas stations and select US department stores
- 1% cash back on everything else
- Terms Apply
At US supermarkets, you can earn 6% cash back on up to $6,000 in spending each year. At the maximum, that would mean $360 in cash back rewards ($6,000 X 6%).
And it breaks down to $500 per month, which is a low number for grocery spending. And you’d only need to spend ~$132 a month on groceries to have the $95 annual fee (See Rates & Fees) “pay for itself” (~$132 X 12 months X 6%) – everything else is cash back in your pocket!
Plus, you’ll earn 3% cash back at US gas stations and select US department stores, like JC Penney, Macy’s, and Saks. These categories are uncapped!
If you spend a lot on gas, and shop at department stores for clothes, school uniforms, or anything else they sell, this can add up in a hurry.
Lots of folks prefer the simplicity of straightforward cash back rewards as opposed to earning miles or points. We know there are lots of credit cards that reward grocery store shopping, so the AMEX Blue Cash Preferred is best if you like set, predictable rewards.
Take a look at our in-depth review of the AMEX Blue Cash Preferred to see everything you get with this card.
And Who Should NOT Get the AMEX Blue Cash Preferred?
If you’re new to miles & points, note this card will count against your Chase 5/24 status, which means you won’t be approved for most Chase cards if you’ve opened 5+ cards from any bank in the past 24 months (excluding Chase small business cards and certain other small business cards).
We recommend starting with Chase cards for this reason. They have some of the most rewarding cards in the industry!
Also, AMEX is known for only approving most folks for ~5 credit cards – so this card will count for one of your slots. AMEX also has a nice slate of rewarding cards, so consider if you’d like the AMEX Blue Cash Preferred to be one of your 5 card picks.
And obviously, if you don’t spend enough in the bonus categories to justify the annual fee, you should skip this card. That said, if you spend enough to cover the annual fee, it’s a solid card worth adding to your collection.
The break even point to cover the AMEX Blue Cash Preferred card’s annual fee is ~$132 per month in grocery spending per month, which most families easily exceed. You’ll earn 6% cash back on up to $6,000 in spending per year at US supermarkets (then 1%), and an uncapped 3% cash back at US gas stations and select US department stores.
If those bonus categories make up the bulk of your spending each month, this is an excellent card to consider for cash back rewards. Remember, you’ll also earn a $200 statement credit after spending $1,000 on purchases in the first 3 months of account opening, which will help offset the annual fee for the first couple of years.
And if you’re looking to earn miles or points rewards for your grocery spending, be sure to browse our list of the best grocery credit cards.
For rates and fees of the Blue Cash Preferred Card, please click here.