Blue Cash Preferred® Card from American Express

Quick Snapshot

• Annual Fee: $0 intro first year, then $95
• APR: 0% intro for 12 months, then 19.74%–28.74% variable
• Rewards: 6% on groceries & streaming, 3% on gas & transit, 1% on everything else
• Bonus: $250 statement credit after $3,000 spend in 6 months
• Best For: Families, heavy grocery shoppers, streaming subscribers
• Credit Needed: Good to Excellent (690+)

Overview

The Blue Cash Preferred Card from American Express is a premium cash back card that offers an impressive 6% cash back on U.S. supermarkets (up to $6,000 annually) and select streaming subscriptions. With 3% back on gas and transit, plus a $0 intro annual fee for the first year, this card is ideal for families and heavy grocery shoppers who want to maximize cash back rewards.

This card stands out for its industry-leading 6% cash back on groceries—one of the highest rates available. For families who spend $1,600+ annually on groceries (just $134 per month), the rewards easily offset the $95 annual fee, making this card a cash back powerhouse. Combined with unlimited 6% on streaming and 3% on gas and transit, the Blue Cash Preferred delivers exceptional value for everyday spending.

APR Breakdown

• Purchase APR: 0% intro APR for 12 months from account opening, then 19.74%–28.74% variable
• Balance Transfer APR: 0% intro APR for 12 months from account opening on balance transfers, then 19.74%–28.74% variable
• Cash Advance APR: 19.74%–28.74% variable
• Penalty APR: None

Note: The 12-month intro APR period provides flexibility for large purchases or balance transfers. Plan to pay off balances before the intro period ends to avoid interest charges.

Benefits Overview

Travel Benefits

• Car Rental Loss and Damage Insurance: Coverage for damage or theft when you rent a car and decline the rental company's collision insurance
• No Foreign Transaction Fees: Use internationally without additional charges
• Travel Accident Insurance: Coverage when traveling on common carriers
• Emergency Card Replacement: 24/7 card replacement worldwide
• Travel Emergency Assistance: 24/7 hotline for travel-related emergencies

Everyday Benefits

• Purchase Protection: Covers new purchases for 90 days against damage or theft (up to $1,000 per occurrence, $50,000 per year)
• Extended Warranty Protection: Extends the time period of eligible U.S. manufacturer's warranties by an additional year (on warranties of 5 years or less)
• Return Protection: Get refunded for eligible purchases that merchants won't take back (up to $300 per item, $1,000 per calendar year)
• Fraud Protection: Zero liability for unauthorized charges
• Account Management Tools: Free online and mobile app access with spending alerts and budgeting features
• Lost Card Replacement: Quick and easy card replacement

Lifestyle Benefits

• Amex Offers: Access to exclusive statement credit offers and discounts from popular merchants (often worth $100+ annually)
• ShopRunner: Free 2-day shipping and free returns at select online retailers
• 24/7 Customer Service: Award-winning customer support by phone, chat, or app
• Mobile App Features: Spending insights, rewards tracking, and security controls

Rewards & Cash Back

• 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 (including Disney+, Hulu, Netflix, Spotify, Apple Music, Audible, and more—no cap)
• 3% cash back at U.S. gas stations (no cap)
• 3% cash back on transit (including taxis, rideshare, parking, tolls, trains, buses, and more—no cap)
• 1% cash back on all other purchases

How It Works:

• 6% grocery earning capped at $6,000 annually (maximum $360 cash back)
• 6% streaming has no cap—earn unlimited cash back
• 3% gas and transit have no caps—earn unlimited cash back
• Cash back is received as Reward Dollars
• Rewards do not expire as long as your account is open

Redemption Options:

• Statement credits to offset purchases
• Redemption at Amazon.com checkout
• Gift cards to popular retailers
• Charitable donations
• No minimum redemption threshold

Welcome Bonus

Earn a $250 statement credit after you spend $3,000 on purchases in the first 6 months from account opening.

This bonus requires only $500 per month in spending—easily achievable for most families through grocery shopping and everyday expenses. Combined with the $0 intro annual fee, you're earning $250 with no upfront cost in the first year.

Fees Summary

• Annual Fee: $0 intro annual fee for the first year, then $95
• Break-even Point: Spend approximately $1,600 annually on groceries ($134 per month) to offset the $95 annual fee with 6% cash back
• Foreign Transaction Fee: $0
• Balance Transfer Fee: Either $5 or 5% of the amount of each transfer, whichever is greater
• Cash Advance Fee: Either $10 or 5% of the amount, whichever is greater
• Late Payment Fee: Up to $40
• Returned Payment Fee: Up to $40

Who This Card Is Best For

Ideal For

• Families who spend $1,600+ annually on groceries ($134+ per month)
• Heavy grocery shoppers who frequent U.S. supermarkets
• Streaming subscribers with multiple active subscriptions
• Commuters who spend heavily on gas and public transit
• Rideshare users who frequently use Uber, Lyft, or taxis
• Those who can maximize 6% groceries within the $6,000 annual cap
• Cash back enthusiasts who prefer simple cash back over points
• Those willing to pay $95 annual fee for significantly higher rewards

Not Good For

• Light grocery spenders who spend less than $1,600 annually on groceries (consider Blue Cash Everyday)
• Walmart/Target primary shoppers (may not code as supermarkets—shop at traditional grocery stores)
• Those who exceed grocery cap ($6,000 annually—consider supplemental cards)
• Fee-averse consumers who strongly prefer no annual fee cards
• Premium rewards seekers who want travel perks, lounge access, or elite status
• International shoppers primarily using foreign stores (6% only on U.S. supermarkets)
• Those who prefer points over cash back

Key Pros & Cons

Pros

• Industry-leading 6% cash back on U.S. supermarkets (up to $6,000 annually = $360 cash back)
• 6% cash back on streaming subscriptions with no cap (unlimited earning)
• Generous 3% cash back on gas and transit with no caps (unlimited earning)
• $0 annual fee for the first year allows you to test the card risk-free
• Attractive $250 welcome bonus after $3,000 spend (achievable threshold)
• 0% intro APR for 12 months on purchases and balance transfers
• No foreign transaction fees
• Comprehensive purchase protections and extended warranty
• Flexible redemption options including statement credits and Amazon checkout
• Rewards never expire as long as account remains open
• No minimum redemption threshold
• Access to valuable Amex Offers (often worth $100+ annually)

Cons

• $95 annual fee after first year requires spending $1,600+ annually on groceries to justify
• 6% grocery earning capped at $6,000 annually (then drops to 1%)
• Must track grocery spending to maximize rewards within cap
• Variable APR can be high (up to 28.74%) after intro period if carrying a balance
• Balance transfer fee applies (5% or $5 minimum)
• Some stores (like Walmart, Target superstores) may not code as supermarkets
• Higher annual fee than Blue Cash Everyday ($0) requires analysis of spending patterns
• No bonus earning on dining (unlike some competitors)
• Shorter intro APR period (12 months) compared to Blue Cash Everyday (15 months)

Alternatives to Consider

How the Rewards Add Up

Example Annual Value

If you spend $25,000 per year on typical expenses:

First Year Value:

• Welcome Bonus: $250
• Cash Back: $639
• Annual Fee: $0 (first year)
• Total First Year Value: $889

Second Year Onward:

• Cash Back: $639
• Annual Fee: -$95
• Net Annual Value: $544

Compare to Blue Cash Everyday:

• Blue Cash Everyday would earn approximately $390 on the same spending
• Blue Cash Preferred earns $639 - $95 fee = $544
• Blue Cash Preferred advantage: $154 more per year

Blue Cash Preferred vs. Blue Cash Everyday

Choose Blue Cash Preferred if:

• You spend $1,600+ annually on groceries ($134+ per month)
• You have multiple active streaming subscriptions
• You want to maximize cash back on gas and transit (3% vs. 3%)
• The $95 annual fee is offset by your higher earning potential (6% vs. 3% on groceries)
• You value unlimited 6% on streaming (Blue Cash Everyday includes streaming in Disney+ credit)

Choose Blue Cash Everyday if:

• You spend less than $1,600 annually on groceries
• You prefer no annual fee (ever)
• You want 3% on online retail (not offered on Preferred)
• You're unsure about your spending patterns and want to start with no commitment
• You prefer a longer intro APR period (15 months vs. 12 months)

Break-Even Analysis:

• Annual Fee: $95
• Difference in grocery rewards: 6% - 3% = 3%
• Required grocery spending to offset fee: $95 ÷ 3% = $3,167 per year
• But groceries cap at $6,000, so effective break-even is around $1,600 annually when considering all categories

Should You Get This Card?

You Should Get It If...

• You spend $1,600+ annually on groceries at U.S. supermarkets
• You have multiple streaming subscriptions (Netflix, Spotify, Disney+, etc.)
• You spend heavily on gas and transit ($100+ monthly)
• You want to maximize cash back on everyday spending
• You're comfortable paying $95 annual fee for significantly higher rewards
• You prefer simple cash back over transferable points
• You want a 0% intro APR for large purchases or balance transfers
• You shop at traditional grocery stores (not Walmart/Target)

You Should Skip It If...

• You spend less than $1,600 annually on groceries (consider Blue Cash Everyday)
• You primarily shop at Walmart or Target (may not code as supermarkets)
• You strongly prefer no annual fee cards
• You already have a card with better rewards on groceries
• You need premium travel benefits or airport lounge access
• You exceed the $6,000 grocery cap annually (consider pairing with another card)
• You prefer rotating 5% category cards for higher short-term earning
• You want a card focused on dining rewards (this card earns only 1% on dining)

Apply Now

Apply for Blue Cash Preferred Card from American Express

Information accurate as of December 2025. Terms and conditions apply. Please visit the issuer's website for the most current information.