Amex Blue Cash Preferred Review: Worth the Annual Fee for Families

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Yes, the Blue Cash Preferred® Card from American Express is worth it if you’re looking for a family-friendly card with high cash back on everyday purchases. It offers high cash back on U.S. supermarkets, select streaming services, U.S. gas stations and transit. Its 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (1% after that) is hard to beat. This is despite the spending limits and the $95 annual fee that kicks in after the first year. You can use our Blue Cash Preferred cash back calculator to assess whether the cash back is worth the annual fee based on your spending habits.

We rate the card a 4.4 out of 5 for cash back cards, and it is the best grocery rewards credit card in our rankings (earning a 5 out of 5).

If you compare the Blue Cash Preferred to the Blue Cash Everyday® Card from American Express, the no-annual-fee version with lower cash back rates, the Blue Cash Preferred is worth it if you spend more than $60 a week at eligible U.S. supermarkets. However, one notable benefit of the Blue Cash Everyday is its bonus cash back category for U.S. online retail purchases, which the Blue Cash Preferred doesn't offer.

The Blue Cash Preferred offers a tiered cash back rewards program with high cash back on popular spending categories. We rate the Blue Cash Preferred a 4.3 out of 5 for the effective rewards rates on the strength of its bonus cash back categories.

Cardholders earn 6% back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. The 6% back also applies to select U.S. streaming subscriptions. It offers 3% cash back at U.S. gas stations and on transit expenses, including taxis and rideshares. All other eligible purchases earn the base 1% cash back rate.

Here’s how American Express defines Blue Cash Preferred®’s categories:

The cash back you earn from the Blue Cash Preferred® Card is in the form of Reward Dollars, which you can redeem as a statement credit or use to pay for eligible items at Amazon.com. Rewards never expire and can be redeemed for any amount.

The Blue Cash Preferred's introductory offers are decent — however, many other cash back cards score higher in these categories. The card's value lies in its enhanced cash back categories.

Welcome Bonus: Earn a $250 statement credit after spending $3,000 on eligible purchases within the first six months. Due to the high spending requirement, we rate this offer as a 1 out of 5.

0% APR Intro: Enjoy a 0% intro APR on purchases and balance transfers for 12 months from account opening. After that, the card's regular variable APR of 18.49% – 29.49% applies. We rate the intro purchase APR offer a 2 out of 5 and the balance transfer offer inclusive of the balance transfer fees a 2.8 out of 5.

Like most cards, the Blue Cash Preferred's fees and interest rates can be demanding. It's wise to stay on top of your balances and avoid late payments if you want to maximize your cash back.

Here's the rundown on the Blue Cash Preferred's fees and charges:

• $95 annual fee, waived for the first year. While no annual fee is preferable, the card's high cash back rates on groceries and streaming services justify the cost.
• The variable regular APR of 18.49% – 29.49% is, unfortunately, competitive with other rewards cards.
• 3% of the amount of each balance transfer, or $5, whichever is greater. Most rewards cards or cards offering an introductory 0% APR charge 3% or 5%, so Blue Cash Preferred's balance transfer fees are competitive.
• Up to $40 in late fees and imposes a penalty APR of up to 29.99% for late payments. While not uncommon for a reward card, this is the most punitive structure for late payment fees and negatively impacts how we rate the card.
• The 2.7% foreign transaction fee and the lack of bonus categories for travel-related purchases like dining and flights make this card less ideal for frequent travelers.

Despite its attractive rewards, the Blue Cash Preferred® Card from American Express has a few drawbacks to consider. The annual fee, lack of travel rewards and grocery spending cap are key areas where other cards may offer better options. We compare the Blue Cash Preferred with other cash back cards to help you find the best one for your needs.

Pairing the Blue Cash Preferred® Card from American Express with a flat-rate cash back card can be a smart move. The Blue Cash Preferred® offers high rewards in categories like U.S. supermarkets, U.S. gas stations and transit (terms apply), while a flat-rate card can complement it by providing consistent rewards on your other purchases.

For this strategy, we recommend finding a card with no annual fee and a base cash back rate higher than Blue Cash Preferred’s 1%. The Capital One Quicksilver Cash Rewards Credit Card fits the bill, offering unlimited 1.5% cash back on all purchases and no annual fee.

Additionally, because the Blue Cash Preferred® provides exceptional cash back at U.S. supermarkets and U.S. gas stations, you can pair it with a card that offers high cash back on your other high-spend categories. If eating out and entertainment make up a significant part of your budget (on top of groceries and gas), the Capital One Savor Cash Rewards can work well with the Blue Cash Preferred®.

The Blue Cash Preferred® Card from American Express is a prime pick for families who frequently spend on groceries, streaming services and gas. Its 6% cash back at supermarkets is difficult to match, and with just this category, you can still gain substantial cash back even after you account for the $95 annual fee.

However, if your spending in the Blue Cash Preferred®’s bonus categories is low or you're averse to paying an annual fee, this card might not be the best fit.

To apply for the Blue Cash Preferred, you'll need a good to excellent credit score, typically in the range of 670 or higher. The higher credit score requirement is consistent with other cash back cards but does negatively impact how we rate the card overall.

Like other credit cards, approval odds are generally favorable if you have a solid credit history with timely payments and low credit utilization. Other factors like your income, existing debt and whether you already have an Amex card may influence approval.

Amex's current approval process lets you avoid a hard credit pull through a pre-approval process. Fill in your application, and Amex will let you know if you're approved. If you decide to accept the card, then Amex will make a hard credit inquiry.

The Blue Cash Preferred® Card from American Express was evaluated against a set of criteria reflecting the card's value to consumers. The evaluation process included 60 cards and considered the following weighted factors, listed from highest to lowest percentage:

• Effective Reward Rate (50%): Measures the cash back or rewards earning rate.
• Balance Transfer Offer (10%): Assesses the terms of balance transfer options.
• Annual Fee (10%): Considers the cost of the card's annual fee.
• Issuer Satisfaction (5%): Based on customer satisfaction with the card issuer.
• Penalties (5%): Evaluates the severity of penalty fees and rates.
• Regular APR (5%): Examines the long-term interest rate for balances.
• Foreign Transaction (5%): Considers fees for international transactions.
• Intro Purchase (5%): Rates the introductory 0% APR offer on purchases.
• Recommended Credit (5%): Reflects the card's accessibility to various credit scores.

These factors were carefully weighed to determine the card's overall Cash Back Score.

For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.

For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.