Blue Cash Preferred® Card from American Express Review
First off, you'll get a sweet $150 cash back bonus after spending $1,000 on the card in the first 3 months. And the card offers great everyday cash back too - you'll earn 6% back at supermarkets - the highest cash back rate we've seen, making the Blue Cash Preferred® Card from American Express a terrific choice for anyone who spends a significant amount on groceries. Additionally, commuters and others can take advantage of the generous 3% on gas, and shoppers everywhere will appreciate an unlimited 3% back at select department stores like JCP, Kohls, Macys, Sears and Nordstrom. Plus you'll get a very generous 10% back on Amazon.com purchases made in the first 6 months you have the card, up to a maximum of $200 cash back. And from now through the end of the year you'll earn 2% back on purchases made at qualifying small businesses (just make sure to enroll your card to get the 2% back). All other purchases will earn a standard 1% cash back.
The card does have a $95 annual fee, but if you have the spending habits of most people you'll more than earn it back each year (to find out for sure use our free Cash Back Credit Card Calculator). For example, if you spent the maximum amount of $6,000 each year at supermarkets (or $500/month, pretty easy for families to do), you'd get $360 cash back annually just on the groceries you already shop for. If you subtract the annual fee, that's still $265 in cash back each year, and that doesn't include the $150 intro bonus or all the other potential cash back you'd get on gas and other purchases. Or, if you'd prefer a card with no annual fee, consider its sister card the no-fee Blue Cash Everyday Card from American Express, which offers similar cash back rewards, a 0% intro APR and a $100 cash back bonus. However, if you spend the same $500 per month at supermarkets with Blue Cash Everyday you'll only earn $180 cash back each year, as opposed to $360 each year with Blue Cash Preferred, so your choice depends on your individual spending patterns.
Blue Cash Preferred's 12-month 0% introductory APR on purchases and balance transfers is great way to save money on interest fees for over a year. With this no-interest APR you can make purchases now and pay absolutely zero interest for 12 months. You can also transfer your balances from other high-APR cards to this one, taking advantage of the 0% APR to pay down your balance and save some money on interest fees. There is a 3% balance transfer fee, but depending on how much interest you're currently paying and how much it might cost you to transfer your balance to this card it could be worth it.
The Blue Cash Preferred® Card from American Express also features chip-enabled technology, allowing you to make international purchases easily. Non-U.S. countries are requiring this technology with a greater frequency, so having it allows you to make the purchases you want without an issue. Note that this card does charge a 2.7% foreign transaction fee on all purchases made outside the U.S., so it's important to take that into consideration.
In sum, this is a terrific cash back card with a great $150 cash back bonus, generous ongoing rewards, and a lengthy 0% intro APR on balance transfers and purchases. It will particularly appeal to those who spend more on groceries, gas and department stores.
Highlights From American Express
- Apply by 1/11/2017- Earn 10% cash back on purchases at Amazon.com in the first 6 months, up to $200.
- Plus, earn $150 back after you spend $1,000 in purchases on your new card within the first 3 months.
- You will receive cash back in the form of statement credits.
- Everyday Cash Back: 6% at U.S supermarkets on up to $6,000 per year in purchases (then 1%); 3% at U.S gas stations; 1% other purchases. Terms and limitations apply.
- No rotating reward categories. No enrollment required.
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. You can only earn cash back on eligible purchases.
- 0% intro APR on purchases and balance transfers for 12 months, then a variable rate, currently 13.24% to 23.24%, based on your creditworthiness and other factors.
- Terms and Conditions apply.
- Get $150 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive $150 back in the form of a statement credit
- Earn 10% cash back on Amazon.com purchases made in the first 6 months you have the card, up to $200 cash back.
- Earn 6% cash back at U.S. supermarkets (excluding superstores and warehouse clubs) up to $6,000. After the first $6,000 of purchases in a calendar year users will earn 1% cash back.
- Earn 3% at U.S. gas stations and select department stores.
- Earn 1% on all other eligible purchases.
- Unlimited cash back rewards (6% cash back on groceries is capped at $6K annually, after that you'll earn 1%).
- Redeem reward dollars for statement credits in increments of $25 whenever your total available reward dollar balance is $25 or more.
- Minimum redemption is 25 reward dollars.
Fees and APR
- Annual Fee: $95
- Purchase APR: 0% on Purchases for 12 months, then 13.24%-23.24% Variable, based on creditworthiness.
- Balance Transfer APR: 0% on Balance Transfers for 12 months, then 13.24%-23.24% Variable, based on creditworthiness.
- Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater.
- Foreign Transaction Fee: 2.7% of each transaction after conversion to US dollars.
- Late Payment Fee: Up to $38
- Cash Advance Fee: Either $5 or 3% of the amount of each cash advance, whichever is greater.
- APR for Cash Advances: 25.49%
- Penalty APR: 29.49%
- Returned Payment Fee: Up to $38.
|Purchase APR:||0% on Purchases for 12 months, then 13.24%-23.24% Variable|
|Features:||Earn 10% back on Amazon.com purchases made in first 6 mos (max $200 back), 6% cash back at US supermarkets (up to $6K), 3% back on US gas & select US dept stores; 1% back on other purchases. $150 intro bonus after spending $1K in first 3 mos. Terms apply.|
|Credit Needed:||Excellent, Good|
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