The CNN Underscored Money editorial team has developed a star rating so you can see the best card for specific categories. While we believe this card excels in this category, its overall star rating may differ.
CNNU Money editors awarded this card 3.2 stars as the best grocery card for cash back.
Pros:
- No annual fee in the first year
- 0% introductory APR for new purchases and balance transfers for the first 12 months, then rises to a variable 19.24% to 29.99% APR
- 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1% back)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit (including taxis, ride share, parking, tolls, trains, buses and more)
- 3% cash back at U.S. gas stations
- $84 in annual statement credits for The Disney Bundle, dispersed monthly
- $120 in annual Equinox+ statement credits, dispersed monthly
- Purchase and return protection benefits
Cons:
- Limited redemption options
- Cash back at U.S. supermarkets is capped at $6,000 in spending per year
- $0 intro annual fee for the first year, then $95 annual fee
- 2.7% of each transaction after conversion to US dollars.
Current welcome bonus: $250 statement credit after spending $3,000 on eligible purchases within the first six months.
Best for: Those looking to earn cash back and increased earnings on grocery, streaming, transit, and gas purchases.
*The information for the following card(s) has been collected independently by CNN Underscored Money: Blue Cash Preferred? Card from American Express.
Digging into the Blue Cash Preferred card
The Blue Cash Preferred? Card from American Express is the only American Express cash back credit card that comes with an annual fee after the first year. At the same time, it also includes the highest earning potential for a handful of bonus categories and a solid welcome bonus.
The Blue Cash Preferred? Card from American Express earns cash back based on the following rates:
- 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1% back)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit (including taxis, ride share, parking, tolls, trains, buses, and more)
- 3% cash back at U.S. gas stations
- 1% cash back on all other purchases
The card earns cash back in the form of Reward Dollars which can be redeemed for statement credits that lower your credit card bill. Right now, this is your only redemption option.
The Blue Cash Preferred? Card from American Express also offers two statement credits: one for The Disney Bundle and another for Equinox+. Neither covers the full cost of a monthly subscription, but they can provide a substantial discount if you already pay for these services.
- The Disney Bundle: Up to $84 in annual credits, dispersed in increments of $7 per month when you spend $12.99 or more each month on an eligible subscription (enrollment required).
- Equinox+: Up to $120 in annual credits, dispersed in increments of $10 per month (enrollment required).
Because of this, card holders can get up to $814 in value in the first year if maximizing the annual 6% cash back cap on groceries, using the The Disney Bundle and Equinox+ credits offered and earning the welcome bonus. Additional earnings are dependent upon individual spending. While a $95 annual fee kicks in after the first year, you may be able to offset it depending on where you spend the most money.
Advantages of the Blue Cash Preferred card
The biggest advantage of the Blue Cash Preferred? Card from American Express is its elevated earnings on groceries and streaming. In fact, it offers the highest cash back rate on the two categories of any cash back card. So if those are two of your major spending categories, this card could help you save some serious cash.
Blue Cash Preferred? Card from American Express card holders can also enjoy a generous unlimited cash back rate of 3% on gas and transit, which can be a costly area of living for heavy commuters or road warriors. For example, a New York City commuter who spends $127 every month for an unlimited MetroCard would earn $45.72 in cash back over the course of a year.
You also have access to Amex Offers as a Blue Cash Preferred? Card from American Express card holder, which opens up the opportunity to earn even more cash back on top of your regular earnings. For example, you could be targeted for a bonus cash back offer on gas on top of the 3% you already earn on gas transactions.
Again, Blue Cash Preferred? Card from American Express get an annual credit of up to $84 (or $7 a month) toward a Disney Bundle subscription when you spend at least $12.99 on a monthly subscription. At the $12.99 level, Disney’s Trio Basic bundle includes Hulu, Disney+, and ESPN+ with ads. Your monthly subscription falls to $5.99 per month (plus tax, if applicable) when paired with this statement credit.
The Blue Cash Preferred? Card from American Express also includes up to $120 Equinox+ (or $10 a month) credit, which gives members unlimited access to Equinox, SoulCycle, Pure Yoga, Precision Run, Headstrong, Rumble, and TB12 on-demand fitness classes via the mobile app. The subscription costs $39.99 (plus tax, if applicable) per month before factoring in the credit.
Like many American Express credit cards, the Blue Cash Preferred? Card from American Express has a handful of purchase protection benefits. Eligible purchases made with the card are covered against damage and theft for the first 90 days after purchase, up to $1,000 per covered purchase and $50,000 per year. Claims due to natural disasters are capped at $500 per covered event.1
Further, the Blue Cash Preferred? Card from American Express also includes return protection. If a seller won’t take back an item within 90 days of purchase, Amex will refund you the full purchase price excluding shipping and handling, up to $300 per item and $1,000 per calendar year. This is only valid on purchases made in the U.S. or its territories.2
Disadvantages of the Blue Cash Preferred card
While the Blue Cash Preferred? Card from American Express offers top-notch earnings at U.S. supermarkets, there is a $6,000 spending cap on how much cash back you can earn. That means you can only earn 6% on the first $6,000 spent, which comes out to $360 annually. After this, your grocery earnings drop to 1%.
Other cash back cards offer lower earnings on groceries, but there is no spending cap. If you know you spend more than $500 on groceries per month, then you may get more value out of another card even if it has a lower earning rate on groceries.
The Blue Cash Preferred? Card from American Express also comes with limited redemption options, but that shouldn’t be a surprise given the card’s name clearly calls out that it’s for those who prefer cash back. As discussed previously, you can use the Rewards Dollars earned with this card toward statement credits that offset your balance.
It’s also worth noting that earnings are geared towards U.S. spending, and you will be charged a foreign transaction fee of . Consider a credit card that doesn’t have foreign transaction fees if you’re planning a trip abroad.
Finally, this card comes with a $0 intro annual fee for the first year, then $95. You can easily make up for this with the earnings and benefits, but know that there are no annual fee credit cards that offer comparable earning rates.
Other credit cards similar to the Blue Cash Preferred
There are two other American Express credit cards you might consider when deciding whether or not to apply for the Blue Cash Preferred? Card from American Express. The first is the Blue Cash Everyday? Card from American Express (terms apply, see rates and fees), which is effectively the no annual fee version of the Blue Cash Preferred? Card from American Express.
The Blue Cash Everyday? Card from American Express is also a cash back card that earns bonus cash back at U.S. supermarkets and gas stations However, it earns less than the Blue Cash Preferred? Card from American Express and has slightly different earning categories:
- 3% cash back on up to $6,000 spent at U.S. supermarkets each year (then 1% back)
- 3% cash back at U.S. gas stations on up to $6,000 spent each year (then 1% back)
- 3% cash back on up to $6,000 spent on U.S. online retail purchases each year (then 1% back)
- 1% cash back on all other purchases
The Blue Cash Everyday? Card from American Express can be a good option for those who want to earn cash back on groceries and gas without the annual fee. Plus, you’re trading 3% back on transit for 3% back on purchases made with U.S. online retailers (up to $6,000, then 1% back). This may be advantageous for those who do not commute to an office.
Those looking for travel rewards might consider the American Express? Gold Card (terms apply, see rates and fees). Unlike the Blue Cash Preferred? Card from American Express, this card earns American Express Membership Rewards? points on all purchases. These can be redeemed for a variety of different things, including travel. You can book travel through amextravel.com or by transferring to one of Amex’s list of 20+ airline and hotel transfer partners. When using transfer partners, you can maximize your points and book things like business-class airfare.
The card earns bonus points at supermarkets, restaurants and other categories:
- 4 points per dollar at U.S. supermarkets, up to $25,000 per year (then 1 point per dollar)
- 4 points for every dollar on dining worldwide
- 3 points per dollar on flights booked directly with airlines or through amextravel.com
- 1 point per dollar on all other purchases
The American Express? Gold Card has a higher $250 annual fee that’s largely offset by various monthly credits. The card provides up to $10 per month in Uber Cash and $10 per month in dining credits, which can be used at Grubhub, Seamless, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. If you maximize these benefits, the card almost pays for itself.
Should you get the Blue Cash Preferred card?
The Blue Cash Preferred? Card from American Express offers significant value to those who are high spenders in the grocery, streaming, transit and gas categories. Because of this, the card is great for families and commuters, as they can earn 3% to 6% back on their everyday spending.
However, you might want to stay away from this card if you value travel rewards. Rewards Dollars earned with the Blue Cash Preferred? Card from American Express cannot be converted to Membership Rewards points or otherwise used for travel. If you’re looking to maximize grocery purchases and earn travel rewards, consider the American Express? Gold Card instead.
1Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits 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.
2With 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 eligible American 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.
*The information for the following card(s) has been collected independently by CNN Underscored Money: Blue Cash Preferred? Card from American Express, Blue Cash Everyday? Card from American Express, and American Express? Gold Card. The card details on this page have not been reviewed or provided by the card issuer.
To view rates and fees for Blue Cash Preferred? Card from American Express, please visit this page.
To view rates and fees for Blue Cash Everyday? Card from American Express, please visit this page.
To view rates and fees for American Express? Gold Card, please visit this page.
