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 to maximize cash back on groceries and streaming services. With a Cash Back Score of 4.4 out of 5, it ranks 9th among cash back cards and takes the top spot as the best grocery rewards credit card in our rankings. These high ratings come despite the card's $95 annual fee (which kicks in after the first year) and its $6,000 per year spending limit for 6% cash back on U.S. supermarkets (1% after that).

Along with a high grocery cash back rate, the card also provides 6% on select streaming purchases and 3% cash back on U.S. gas stations and select transit purchases. The higher cash back rates in bonus categories make it one of the best cards to pair with other cash back cards for a comprehensive cash back strategy.

If you're comparing 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’s rewards program as one of the top 10 cash back rewards offerings on the market. Here are the cash back rates in summary:

• 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%)
• 6% cash back on select U.S. streaming subscriptions
• 3% cash back at U.S. gas stations
• 3% cash back on transit
• 1% cash back on other purchases

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

The card earns Rewards Dollars, which do not expire, and the best redemption option is as a statement credit, providing straightforward value. Alternatively, rewards can be used at Amazon.com checkout.

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

Welcome Bonus: The current welcome bonus is a $250 statement credit after spending $3,000 on eligible purchases within the first six months. However, we've seen a $300 statement credit offer via the Amex website, and the current language on the website is 'Apply and find out your welcome offer.' Overall, the card's spending requirement for the bonus is a bit high. Many cash back cards offer a $200 welcome bonus for $1,000 or less of spending.

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 18.24% to 29.24% variable applies. We rate the intro purchase APR offer a 2 out of 5 and the balance transfer offer, inclusive of the impact of the balance transfer fees and annual fee, a 2.8 out of 5.

The Blue Cash Preferred card offers some of the best perks and benefits of any cash back card. The extended warranty on purchases and the Disney Bundle credit are standout offerings for the card. For example, if you already have the Disney Bundle, the credit will pay for all but $11 of the $95 annual fee.

Insurance and Protections:

• Car Rental Loss and Damage Insurance: Provides coverage for damage or theft of a rental vehicle.
• Extended Warranty: Adds up to one extra year to the original manufacturer's warranty on eligible purchases.

Credits and Discounts:

• $84 Disney Bundle Credit: Receive a $7 monthly statement credit when you spend $9.99 or more on the Disney Bundle.

All Other Perks:

• Access to Amex™ Events: Special access to events, including presales and exclusive experiences at sports, music and theater events.
• Amex Offers: Access to various offers that can earn you statement credits or extra rewards at partner brands. The value depends on your spending habits and available offers.

The Blue Cash Preferred card's fees and penalties are not its strongest suit, with a $95 annual fee (waived in the first year), one of the highest in the category. It also has a late fee and penalty APR for a missed payment while also charging foreign transaction fees. Here's the fee schedule:

• Regular APR: 18.24%–29.24% variable
• Penalty APR: 29.99% variable
• Annual Fee: $0 for the first year, then $95
• Cash Advance Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
• Foreign Transaction Fee: 2.7% of each transaction after conversion to U.S. dollars
• Late Payment Fee: Up to $40
• Returned Payment Fee: Up to $40

For those considering this card, it's worth noting that downgrading to the no-fee Blue Cash Everyday card and later upgrading can be a strategic move to manage the annual fee while enjoying the benefits.

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. Some online forum posts report challenges in getting approved even with high credit scores or ownership of premium cards, underscoring that approval isn't solely credit-score dependent. 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 preapproval 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.

Amex has the highest customer approval rates of any credit card issuer. Users generally appreciate the high grocery cash back rates but wish the spending cap was higher. Online forum posts praise the card for its substantial cash back on groceries and streaming services. However, some users note the $6,000 grocery cap and $95 annual fee as drawbacks.

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.

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.

We evaluated the Blue Cash Preferred® Card from American Express among 78 cards, focusing on key features to determine its Cash Back Score. These features were weighted accordingly:

• 50%: Effective reward rate, assessing how rewarding the card's earning potential is.
• 10%: Annual fee rating, where 5 indicates no fee.
• 5%: Accessibility based on credit score requirements.
• 5%: Issuer satisfaction, based on J.D. Power studies.
• 5%: Penalty rates and fees, where 5 is no penalties.
• 5%: Introductory purchase APR offer.
• 5%: Regular APR.
• 5%: Foreign transaction fees.
• 5%: Introductory bonus offer ROI.
• 5%: Perks value.

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 rates and fees of the American Express® Gold Card, 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.