Is Blue Cash Preferred® Card From American Express Perk-y Enough?

Advertiser Disclosure: The Krazy Coupon Lady has partnered with CardRatings for our coverage of credit card products. The Krazy Coupon Lady and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on The Krazy Coupon Lady are from advertisers, and compensation may impact on how and where card products appear on the site. The Krazy Coupon Lady does not include all card companies or all available card offers.

Editorial Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Terms apply.

Looking for a cash back card that gives you money just for buying food? Then the Blue Cash Preferred® Card from American Express might be for you. This card offers tons of other benefits, too, like a $250 welcome offer, introductory 0% APR for the first year (19.24% — 29.99% Variable APR after that), and statement credits with certain online subscriptions.

The drawback to any American Express card is the high underwriting requirements: you won’t qualify for this card with bad credit. This one in particular has an annual fee after the first year, so even if you qualify you’ll end up paying for the privilege. Still, the perks could outweigh that annual fee.

Let’s get into all the details.

American Express Blue Cash Preferred® at a Glance

• Annual fee: $0 for the first year, then $95 annually after that.

• Introductory bonus: $250 statement credit when you spend $3,000 within the first 6 months of opening.

• Rewards: 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 and gas in the U.S., 1% cash back on all other eligible purchases.

• Interest rate: Introductory 0% APR for the first 12 months on purchases and balance transfers made within the first 60 days of account opening, then 19.24% – 29.99% Variable APR after that.

• Cash advance APR: 29.99% APR

• Penalty APR: 29.99% APR

• Balance transfer fee: The greater of 3% or $5.

• Cash advance fee: The greater of 5% or $10.

• Foreign transaction fee: 2.7%

• Late and return payment fees: Up to $40

• Terms apply.

Rates & Fees

Breaking down the introductory bonus and rewards.

For starters, let’s look at the introductory bonus. If you spend $3,000 on purchases within the first 6 months, you’ll earn a $250 bonus in the form of a statement credit.

Because it’s spread out over six months, that’s probably an achievable minimum spend for most people at just $500 per month.

There are some items that don’t count towards the $3,000 minimum spend, like gift card purchases and prepaid cards. Your ‘purchase’ also won’t qualify if you’re using your card to send money to friends or family on a platform like Venmo or Paypal.

TIP: Wanna know just how much we love the Amex Blue Cash Preferred® card? It made it onto our roundup of best cash-back credit cards for 2023.

6% cashback on supermarket purchases

You’ll earn 6% cash back on your first $6,000 in purchases at U.S. supermarkets every year, with the calendar resetting every January. Considering the skyrocketing prices of supermarket food, that likely won’t be hard to hit, especially if you are feeding a family.

Here are some stores that don’t count as supermarkets with Blue Cash Preferred®:

• Warehouse clubs (like Sam’s Club or Costco)

• Convenience stores (like 7Eleven)

• Meal-kit delivery services (like Hello Fresh)

• Superstores (like Target and Walmart)

• Specialty stores (like butchers or bakeries)

Examples of supermarkets that do work with Blue Cash Preferred® for cash-back bonuses include:

• ALDI

• FreshDirect

• Gelson’s

• Hy-Vee

• Kings Food Markets

• Meijer

• ShopRite

• Smart & Final

• Stop & Shop

• Trader Joe’s

• Vons

• Whole Foods

• Winn-Dixie

The list isn’t all-inclusive, but you get the idea. If you have a question about how the store is classified in Amex’s system, you can call the credit card company beforehand to make sure your purchase will count.

These and all other cash-back rewards will be awarded via Blue Cash Rewards Dollars, which you can then apply as statement credits.

But you can’t use statement credits to pay the minimum due amount on your statement. You’ll either have to apply your points earlier in the billing cycle or use them to pay any amount in excess of the minimum due.

6% cashback on streaming services

You can also earn 6% cash back on select U.S. streaming services with Blue Cash Preferred®. Here’s the list:

• Amazon Music Unlimited

• Apple Music

• Apple TV+

• Audible

• DirecTV Stream

• Disney+

• ESPN+

• Fubo TV

• HBO Max

• HBO (standalone streaming subscription only)

• Hulu

• iHeartRadio

• Kindle Unlimited

• Luminary

• MLB.TV

• NBA League Pass

• Netflix

• NHL.TV

• Pandora

• Paramount+

• Peacock

• Prime Video

• Showtime

• Sling TV

• SiriusXM Streaming and Satellite

• Spotify

• Stitcher

• TIDAL Music

• YouTube Music Premium

• YouTube Premium

• YouTube TV

This list is all-inclusive. And you’ve gotta be careful. You have to pay the streaming service directly for your purchase to count. If you pay through Comcast or your cable company, the purchase might not register and fall into the 1% cash back category.

3% cashback on transit and gas stations

What’s nice is you’ll also get 3% cash back on transit and U.S. gas stations. Here’s what counts as a transit charge:

• Trains

• Taxis

• Rideshare services

• Ferries

• Tolls

• Parking

• Buses

• Subways

And here’s what doesn’t:

• Airfare

• Car rentals

• Cruises

Most American gas stations count for 3% cash back. But they won’t if they’re associated with a wholesale club (think BJ’s or Sam’s), superstore (like Walmart or Target), or supermarket. This all means you can’t earn gas station cash back at the same place you’re earning 6% cash back on groceries.

1%: Cash Back on other purchases

All your other eligible purchases fall into the 1% cash-back bucket. Simple.

TIP: American Express has a refer-a-friend program that can help you earn some extra cash.

Other American Express Blue Cash Preferred® benefits

There are other benefits to American Express Blue Cash Preferred® on top of the introductory bonus and cash back offers.

Additional statement credits on subscription services

First, you can get up to $84 in statement credits each year if you’re based in the U.S. and have a Disney-owned subscription service. You’ll receive $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Preferred(R) Card. Enrollment required.

If you have an Equinox+ subscription and pay with the Blue Cash Preferred® card, you’ll get a $10 statement credit every month, up to $120 per year, when you pay for an auto-renewing subscription to Equinox+ *

*Enrollment required.

Travel benefits

There’s free damage and theft insurance on any car rentals you book with your Blue Cash Preferred® card. You might want to call ahead to make sure you can get the coverage where you’re renting, though, because there are some exclusions.

For example, the insurance doesn’t apply if you’re renting a vehicle in Australia, Italy, or New Zealand.

American Express will also hook you up with legal or medical services while you’re traveling at least 100 miles from home. Now, they won’t pay for those services. But they will help you find them.

Related: 7 Best Travel Rewards Credit Cards

Returns & experiences

If your store’s return policy doesn’t extend to 90 days, Amex will extend the return policy for you as long as you purchased the item with your Blue Cash Preferred® card. You can claim up to $300 per purchase, up to $1,000 per year.

American Express is also well-known for its ‘experiences,’ which can be anything from exclusive events to pre-sales on tickets for very public T Swift concerts.

You need good to excellent credit for American Express Blue Cash Preferred®.

This one is not for credit newbies. You will need good to excellent credit to qualify for the Amex Blue Cash Preferred® card. Depending on who you ask, good credit can start at 670, but you’re more likely to get approved with a credit score closer to 690 or 700.

Remember that other factors will impact your approval, too. For example, you could have a 750 credit score, but if you don’t have any income, you’re not likely to get approved. Your debt-to-income ratio and other aspects of your financial history could also come into play.

American Express is known for being super tight with their credit underwriting practices, so the credit limit you’re approved for might be lower than what you’re used to. This is especially true with this specific card. Personally, I have never seen anyone get approved for a five-digit credit limit with the Blue Cash Preferred® card upon application, though that’s not to say it’s impossible. Just highly unlikely.

Related: How opening and closing credit cards impacts your credit score

$0 intro annual fee for the first year, then $95.

The Blue Cash Preferred® card offers a ton of perks that can add up to a lot of cash back in your pocket. But there are some pitfalls you’re going to want to keep an eye on.

First, there is an annual fee. You won’t have to pay it the first year, but it’s $95 after that. If you had something like an Equinox membership, you could easily earn that $95 back and then some. But you do need to be prepared to pay that fee upfront on your card’s first anniversary.

It’s also important to note that while 6% cash back on groceries in the U.S. is amazing, you’re only getting it on the first $6,000 spent at supermarkets in a calendar year, maxing out at $360 cash back. A family of four could easily meet this threshold in six months or less,. Then, all your grocery purchases thereafter would only get 1% cashback.

None of the other categories have spending limits on cashback rewards. It’s just the supermarkets.

Who is American Express Blue Cash Preferred® best for?

American Express Blue Cash Preferred® is best for those with a positive credit history and high credit score to boot. It’s attractive for families with a high amount of cash back rewards on supermarket spending. However, it is a little bit of a bummer that the cash back for this category maxes out at $360.

It’s also great for people who have multiple streaming services, as there are ways to earn both 6% cash back and, in some cases, additional statement credits.

For rates and fees of the Blue Cash Preferred® Card, (See Rates & Fees).

Advertiser Disclosure: The Krazy Coupon Lady has partnered with CardRatings for our coverage of credit card products. The Krazy Coupon Lady and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on The Krazy Coupon Lady are from advertisers, and compensation may impact on how and where card products appear on the site. The Krazy Coupon Lady does not include all card companies or all available card offers.

Editorial Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Insurance benefits: You can rely on Global Assist Hotline 24 hours a day / 7 days a week for medical, legal, financial or other select emergency coordination and assistance services while traveling more than 100 miles away from your home. Third-party service costs may be your responsibility.

• Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

• Please visit americanexpress.com/benefitsguide for more details.

• Card Members are responsible for the costs charged by third-party service providers.

When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year.

• Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

• Please visit americanexpress.com/benefitsguide for more details.

• Underwritten by AMEX Assurance Company.

With Return Protection, you may return eligible purchases to American Express if the seller won’t take them back up to 90 days from the date of purchase. American Express may refund the full purchase price excluding shipping and handling, up to $300 per item, up to a maximum of $1,000 per calendar year per Card account, if you purchased it entirely with your eligibleAmerican Express® Card. Purchases must be made in the U.S. or its territories.

• Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

• Please visit americanexpress.com/benefitsguide for more details.

When an American Express® Card Member charges a Covered Purchase with their Eligible Card, Purchase Protection can help protect their Covered Purchases for up to 90 days from the Covered Purchase date if it is stolen or accidentally damaged. The coverage is limited up to $1,000 per occurrence, up to $50,000 per Card Member account per calendar year.

• Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

• Please visit americanexpress.com/benefitsguide for more details.

• Underwritten by AMEX Assurance Company.

Car Rental Loss and Damage Insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply.

• Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

• Please visit americanexpress.com/benefitsguide for more details.

• Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.