Amex Blue Cash Preferred Review: A Lucrative Rewards Program and a Big Welcome Offer

Blue Cash Preferred® Card from American Express is good for earning cash back on groceries, gas, and other everyday expenses. It earns an incredible 6% back at U.S. supermarkets ($6,000 annual spending cap), which is the highest rate I've found in that category. Terms apply.

Learn more about this card's features in our full review.

Is the Amex Blue Cash Preferred worth it?

The Blue Cash Preferred® Card from American Express easily justifies its annual fee (a $0 intro annual fee for the first year, then $95. See rates and fees). The cash back rate at U.S. supermarkets is twice as much as what many grocery credit cards earn. Terms apply. If you spend money regularly in this card's bonus categories, you'll have no trouble getting your money's worth.

Author's note

There are a ton of credit cards with bonus categories where they earn more cash back/points. I'd rank this American Express card near the top. Its bonus categories are all areas where most people spend money regularly, and it earns high rates in each of them. While I haven't had this card (I normally stick with travel cards), I've used several American Express cards, and it's one of my favorite card issuers. It has a top-notch web platform and mobile app, and its customer service is second to none.

What everyone else is saying

Want to know what other financial websites and real cardholders think of this card? We've read the reviews and comments online -- here's what we found.

What our competitors think

Average competitor rating: 4.3 / 5 stars

Everyone agrees that this is one of the top cash back credit cards. All the professional reviews we found pointed out the value in this card's cash back program. The spending cap on U.S. supermarket rewards (the 6% rate applies on up to $6,000 in U.S. supermarket spending per calendar year, terms apply) was a common criticism, though.

Reviewers also mentioned the annual fee. No one thought it was too much, considering the benefits you get. But the traditional advice for credit cards with annual fees is to make sure you'll get enough value out of them to outweigh the cost.

The social media consensus

This card is more polarizing than I would've expected on social media. Lots of people love it, particularly those who have actually used it. Real-life cardholders have called it "great" and "the best card in my wallet."

The criticisms mainly come from the serious credit card enthusiasts -- people who don't mind opening several quality credit cards to squeeze out every last $1 of cash back. I saw a lot of comments along the lines of "You're better off opening Card A, Card B, and Card C." Others rightly pointed out that there's value in not needing to open and manage several credit cards, when you can get one that's more than good enough.

A smart point several people made online is that the U.S. supermarkets category doesn't include Walmart, Target, and warehouse clubs, all popular places to shop for groceries. If you do lots of your grocery shopping at those businesses, this may not be the right card for you.

High cash back rates in popular everyday spending categories

You can earn some serious cash back with the Blue Cash Preferred® Card from American Express. Here are its cash back rates:

• 6% back at U.S. supermarkets, capped at $6,000 per calendar year
• 6% back on select U.S. streaming subscriptions
• 3% back at U.S. gas stations
• 3% back on transit including taxis/rideshare, parking, tolls, trains, buses, and more
• 1% back on other purchases
• Terms apply

I haven't seen many cash back cards that can match this one. The 6% rate at U.S. supermarkets alone is spectacular. If you spend $500 per month in that category, you'll earn $360 per year in cash back. Add in high rates on streaming, gas, and transit, and you could easily clear $500 back per year.

You receive cash back with this card as Reward Dollars. These are redeemable as a statement credit on your credit card bill or checking out at Amazon.com. Terms apply.

Save money up front with a big welcome offer and an intro annual fee

Any self-respecting rewards card needs a welcome offer, and this American Express card has a pretty good one. You earn a welcome offer of $250 in statement credits after spending $3,000 on purchases with your card in the first 6 months. Terms apply.

That's a larger welcome offer than what most cash back cards offer, but it also has a much larger spending requirement. Many cards offer a $200 bonus for spending $500 to $1,000 in the first three months. American Express makes you spend a lot more.

Still, earning $250 back is never a bad thing. You'll also save on this card's annual fee for the first year.

Valuable spending credits -- if you can use them

American Express is known for loading up its cards with spending credits that can be tricky to use. True to form, this card offers:

• $84 Disney Bundle credit: Get up to $7 in monthly statement credits after spending $9.99 or more each month on an auto-renewing Disney Bundle subscription using your enrolled card. Terms apply.

With the Disney Bundle credit and the big grocery rewards, this card is great for families. If you already pay for a Disney Bundle or have been thinking of signing up, you'll save quite a bit on the monthly fee.

A 0% intro APR could be helpful for avoiding credit card interest

The Blue Cash Preferred® Card from American Express has a 0% intro APR for 12 months on purchases and balance transfers. A go-to 19.24%-29.99% Variable rate applies after the intro period. Terms apply.

This could be useful if you need time to pay off expensive bills, or if you want to refinance credit card debt. But if either of those is your primary goal right now, then this card may not be the best choice.

There are plenty of no annual fee cards with longer 0% intro APR periods. And there are balance transfer cards that give you more time to get out of credit card debt.

Complimentary protections and fantastic customer service round out the experience

American Express is known for providing a higher level of service than most card issuers. It routinely takes the top spot in J.D. Power's customer satisfaction studies.

Many American Express cards also have complimentary protections on purchases and travel bookings. Here are the protections that the Blue Cash Preferred® Card from American Express provides on eligible purchases:

• Purchase protection covering purchases that are accidentally damaged or stolen within the first 90 days
• Extended warranty for up to one additional year on original manufacturer's warranties of five years or less
• Return protection for eligible items the merchant won't take back within 90 days of purchase
• Rental car insurance covering damage or theft to rental vehicles
• Terms apply

The grocery rewards have a few strings attached

Arguably, this card's best feature is its cash back rate on groceries, but there are a couple of caveats to mention. The rate is 6% at U.S. supermarkets, on your first $6,000 in spending there per calendar year.

The U.S. supermarkets category doesn't cover all the places that people buy groceries. Wholesale clubs are excluded, so if you do most of your food shopping at Sam's Club, you won't be earning 6% on that. So are superstores, including Walmart and Target.

That $6,000 spending cap is also on the low side. It has been the limit since well before inflation was a hot-button issue. It'd be nice to see American Express raise this.

Extra fees cut into this card's value

We've already gone over this card's annual fee after the first year. The perks certainly justify that fee, but it's still important to make sure you'll get enough value from this card to make up for the cost. If you won't, check out other credit card reviews so you can find a better match.

This American Express card also charges a foreign transaction fee of 2.7% of each transaction after conversion to US dollars. If you spend $5,000 in Europe for the summer, that'd cost you $135 in fees. Not a huge amount, but something you could avoid if you had a card with no foreign transaction fees.

Amex Blue Cash Preferred credit score

A FICO® Score of 670 or higher is recommended when applying for the Blue Cash Preferred® Card from American Express. Note that American Express uses several factors to evaluate your creditworthiness. Your credit score isn't the only thing that's important, but it does play a large role.

Pre-approval process

American Express has an online pre-approval tool where you can provide some basic information and get matched with card offers, with no impact to your credit score. If you already have any American Express cards, you can also check for pre-approvals in your account. Both options will show you any American Express pre-approvals you have, which may or may not include the Blue Cash Preferred® Card from American Express.

Intro APR

The Blue Cash Preferred® Card from American Express has a 0% intro APR for 12 months on purchases and balance transfers. While it's far from the longest intro period, it gives you time to pay off purchases or credit card debt without interest charges.

Fees

Here are the fees for the Blue Cash Preferred® Card from American Express:

• Annual fee: $0 intro annual fee for the first year, then $95.
• Balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater.
• Cash advance fee: 5% ($10 minimum)
• Foreign transaction fee: 2.7% of each transaction after conversion to US dollars.
• Returned payment fee: Up to $40
• See rates and fees.

Credit limit

Reported credit limits for the Blue Cash Preferred® Card from American Express range from $1,000 to over $25,000. When you're approved for the card, American Express sets a credit limit for you based on several factors, including your income and credit history. If you plan to transfer a balance to this card, keep in mind that eligible balance transfers must be less than your credit limit and also can't exceed $7,500.

If you don't want to pay an annual fee: The Blue Cash Everyday® Card from American Express has similar features and doesn't charge an annual fee (see rates and fees). It earns 3% back at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases, up to a spending cap of $6,000 in each of those bonus categories. Terms apply.

If you want a high cash rewards rate everywhere you go: The Wells Fargo Active Cash® Card keeps it simple with 2% cash rewards on purchases. You earn that rate regardless of the spending category, and there's no limit on how much you can earn.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.