Out of all of the credit cards in my wallet, the Blue Cash Preferred® Card from American Express is by far the most rewarding. I’ve had the card for three years and I’ve never regretted applying.
Its rewards for everyday spending categories are unmatched. Its annual fee is easily forgotten thanks to how quickly rewards accumulate. It proves its usefulness time and time again whenever I’m at the grocery store, gas station or whenever a streaming subscription renews.
While its strong cash-back rate is its best feature, it also comes equipped with good benefits and useful money-saving discounts. Here’s how I get the most from all the Blue Cash Preferred has to offer.
How the Blue Cash Preferred works
- Intro Offer
-
Earn $250 Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- Annual fee
- $0 intro annual fee for the first year, then $95.
- APR
- 19.24% – 29.99% Variable
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
-
670 – 850
Good – Excellent
- Rewards rate
-
1% – 6% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%); 6% Cash Back on select U.S. streaming subscriptions; 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more; 3% Cash Back at U.S. gas stations; 1% Cash Back on other purchases
The Blue Cash Preferred works like any other tiered rewards credit card, earning a base 1% cash back rate on purchases and higher rates on purchases in certain categories. What makes it stand out is the sheer force of the rewards that it earns: 6% cash back at U.S. supermarkets (up to $6,000 annually, then 1%) and for select U.S. streaming services. It also earns 3% cash back for U.S. gas station purchases and on transit, including rideshares.
Having a credit card that provides a return on essential purchases -- such as gas and groceries -- is one of the best ways to earn consistent rewards without unnecessary spending. And I’ve yet to notice the annual fee as it’s quickly buried beneath the rewards accruing in my account.
According to US Bureau of Labor Statistics data, people spent $2,280 on food from April to June 2022. Using the Blue Cash Preferred for those purchases (assuming you bought all your food at a U.S. supermarket) would’ve netted you $136.60 in rewards in those three months alone.
While you can only earn the 6% rate on your first $6,000 of U.S. supermarket purchases annually (1% back thereafter), I’ve never reached that cap through my normal spending. It’s likely easier to hit if you have a family to buy groceries for, but even if you do hit the cap, you’d have already earned $360 back and will still earn 1% back on additional supermarket purchases.
Annual fee? No problem
The card’s $95 annual fee (introductory annual fee of $0 for the first year) is hardly noticeable thanks to the Blue Cash Preferred’s earning potential. According to my year-end summary, I spent $4,298 on groceries in 2022. From that spending alone, I earned $257.88 in rewards, just shy of paying off the annual fee three times over.
I also spent $163 on streaming, which kicks back about $10 into my account, and $877.30 on gas, which translates to $26 in rewards. Even after factoring in the annual fee, I still earned nearly $200 for the year.
If you’re not sure whether your normal spending habits will earn you enough rewards to offset the annual fee, or if you don’t want to commit to an annual-fee-bearing card just yet, you may want to consider the Blue Cash Everyday® Card from American Express instead.
It offers similar rewards at U.S supermarkets, just at a lower rate (3% cash back on up to $6,000 per year in U.S. Supermarket purchases, then 1% thereafter, compared to the Preferred’s 6%).
Best ways to use the Blue Cash Preferred
Here’s how I use my Blue Cash Preferred, and what I find to be the most successful at garnering rewards.
- Bring your card with you when you head to the supermarket. The 6% cash back on U.S. supermarket purchases (on up to $6,000 per year in purchases, then 1%) -- one of the best cash-back rates around for that category -- is the driving force behind the Blue Cash Preferred’s usefulness. Using the card for your grocery spending will quickly have you forgetting about its annual fee -- something I can personally attest to. And you aren’t limited to buying food, either. Many supermarkets sell personal care products, household products, pet products and more. Depending on the prices, it might make sense to buy your everyday essentials there, instead of at a big box store or drugstore, to take advantage of the elevated rewards rate.
- Swap over all of your streaming subscriptions. The list of eligible streaming subscriptions that earn 6% cash back is a long one and covers practically all of the most popular music, video and TV streaming services in the U.S. While my streaming rewards (only $10 back) aren’t too high, I also only have two subscriptions. If you’re someone who watches every popular show, your rewards will be even higher.
- Bring your card to the gas pump. Along with supermarket rewards, the Blue Cash Preferred also earns 3% cash back at U.S. gas stations. If you’re someone who commutes to work or just drives a lot in general, this could end up being just as rewarding as its supermarket rewards, considering there’s no earnings cap on the 3% rate.
- Pay off your bill in full each month. As with any credit card, you should always pay your bill on time and in full every month and never charge more than what you can afford to pay off. If you avoid carrying a balance from month to month, you won’t have to deal with nasty interest charges. Instead, all of your rewards will simply be money back in your pocket.
How to redeem your rewards
I redeem my rewards as statement credits, as it guarantees a value of 1 cent per point. It’s also a simple process. You just head to your online account page and choose “explore rewards.” You can then redeem however many rewards you’d like, with no minimum required.
While rewards can be redeemed anytime as a general statement credit that lowers the overall balance of the account, I like to use my rewards to offset regular expenses like my car insurance or streaming subscriptions or use them to cover a planned purchase.
Although the statement credit is applied to my credit card statement in general so I don’t need to tie my redemptions to specific purchases, it gives me a dopamine boost to lower my everyday expenses or treat myself to something nice with the rewards I earn from grocery and gas spending. And rewards add up quickly, so it’s easy to make back what you use.
Perks to take advantage of
Outside of its earning potential, the Blue Cash Preferred comes with a number of useful perks. Amex Offers is a changing selection of retailers where you’ll get a limited-time rebate for spending a certain amount. It’s as simple as selecting the offer through the Amex app and then charging the purchase to your card. If you fulfill the requirements of the offer, you’ll get a statement credit in your card account.
Some offers provide cash back on a certain amount of spending with a specific retailer -- for example, at the time of writing, I could earn 3% cash back on up to $250 spent with Vans or Urban Outfitters, and 4% cash back with LG. These offers can provide a nice earnings boost on purchases you’re already planning to make; just avoid buying things you typically wouldn’t for the sake of earning rewards.
Other perks include purchase protection (which I luckily have not had to use yet). Eligible purchases paid with the card are covered against damage and theft for up to 90 days from the purchase date with a total coverage limit of $50,000 per calendar year and a per-claim limit of up to $1,000. The card also offers an extended warranty benefit on eligible purchases with the card, which provides coverage that matches a manufacturer’s original warranty for one extra year.
Though the Blue Cash Preferred isn’t a travel credit card, it does provide a few useful travel benefits like secondary car rental loss and damage insurance coverage (meaning it kicks in after any other coverage you may have) and a global assist hotline.
In terms of subscriptions and statement credits, there’s a ShopRunner membership that offers two-day shipping with select retailers and a $84 The Disney Bundle credit -- $7 monthly statement credits for using your card to spend $9.99 or more each month on an eligible subscription (subject to auto renewal) of The Disney Bundle (Hulu, Disney+ and ESPN+).
You’ll also get $10 per month in statement credits (for a total of up to $120 per year) toward an auto-renewing subscription to Equinox+, a popular online fitness app. It’s worth noting, however, that neither The Disney Bundle credit or the Equinox+ credit fully covers the cost of the subscriptions, so you should only purchase the subscriptions and take advantage of the statement credits if they’ll actually benefit you.
Finally, you can check your credit score anytime through the MyCredit Guide perk.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Pair it with a flat-rate rewards card
The Blue Cash Preferred offers a great cash-back rate on U.S. supermarkets, select U.S. streaming subscriptions, transit and U.S. gas stations, but you’ll want to pair it with another card to maximize your rewards on other spending categories.
I use the Wells Fargo Active Cash® Card -- which earns 2% cash rewards on eligible purchases, regardless of category -- for all of the purchases not covered by the Blue Cash Preferred’s elevated categories. Between the two, there aren’t any purchase types that I won’t earn a decent rewards rate for.
The bottom line
The Blue Cash Preferred is hands down the most rewarding credit card I have. I use it for all of my U.S. supermarket, U.S. streaming and U.S. gas station purchases, and it routinely provides enough rewards to the point where I forget it ever had an annual fee. I use the rewards -- which add up quickly -- to cover bill payments or planned purchases. It’s been nothing but a boon to my finances, especially by paying the full statement balance each month.
How the Blue Cash Preferred Stacks Up to Other Cards
- Intro Offer
-
Earn $250 Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- Annual fee
- $0 intro annual fee for the first year, then $95.
- APR
- 19.24% – 29.99% Variable
- Intro Purchase APR
- 0% on purchases for 12 months
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Good – Excellent
- Rewards rate
-
1% – 6% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%); 6% Cash Back on select U.S. streaming subscriptions; 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more; 3% Cash Back at U.S. gas stations; 1% Cash Back on other purchases
- Intro Offer
-
10,000 Points Earn 10,000 Membership Rewards® Points after you use your new Card to make $2,000 in purchases within the first 6 months of Card Membership.
- Annual fee
- $0
- APR
- 18.24% – 28.24% Variable
- Intro Purchase APR
- 0% on purchases for 15 months
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Good – Excellent
- Rewards rate
-
1x – 2x 2x points at U.S. supermarkets, on up to $6,000 per year in purchases (then 1x); 1x points on other purchases
- Intro Offer
-
$200 cash back Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Annual fee
- $0
- APR
- 19.24% – 29.24% (Variable)
- Intro Purchase APR
- N/A
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Fair – Excellent
- Rewards rate
-
1% – 5% Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time.; Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24.
*All information about the Amex Everyday Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
