Is the Amex Blue Cash Preferred worth it?

The Blue Cash Preferred® Card from American Express is frequently considered one of the best credit cards for groceries, and for good reason. This card gives you 6 percent cash back on up to $6,000 spent at U.S. supermarkets each year (then 1 percent back), as well as an unlimited 6 percent cash back on select U.S. streaming subscriptions. Cardholders also receive boosted cash back on transit purchases and U.S. gas station purchases. That’s on top of a generous welcome bonus, too.

The Amex Blue Cash Preferred is worth holding due to the grocery-related category alone. If you max out this rewards category — by spending $500 per month on U.S. supermarket purchases (on up to $6,000 per year, then 1 percent back) — you can earn $360 in cash back rewards per year in this category alone.

But is this card worth it outside of the grocery store savings it offers? We break down other reasons why you might decide to either add this card to your wallet or choose another.

When is the Amex Blue Cash Preferred worth it?

There are plenty of reasons to love the Amex Blue Cash Preferred. You might find the card worthwhile in these scenarios:

If you want high rewards potential

One of the biggest reasons to sign up for the Amex Blue Cash Preferred card is its lucrative rewards structure, which lets you earn:

• 6 percent cash back on up to $6,000 spent at U.S. supermarkets each year (then 1 percent back)
• 6 percent cash back on select U.S. streaming services
• 3 percent cash back on U.S. gas station and transit purchases (including taxis, rideshare, parking, tolls, trains, buses and more)
• 1 percent cash back on other purchases

When you take the time to run the numbers, it’s easy to see where this card can be worth it, even after accounting for the $95 annual fee — though you get a $0 annual fee for the first year.

To get a better idea of your rewards potential with the Amex Blue Cash Preferred, let’s look at a spending example. A moderate-cost plan from the USDA’s April 2024 food plans shows that the cost of food for a family of four with two adults (one man and one woman) and two children (both between ages 9 and 11) will be $1,356.10 per month.

Let’s say you use your card for all $1,356.10 in U.S. supermarket spending each month ($16,273.20 per year). Meanwhile, let’s say you spend $150 per month on gas ($1,800 per year). To round things out, you also spend another $1,000 on miscellaneous purchases on your card each month ($12,000 per year). Here’s how much cash back you’d earn in a year:

You’d earn $360 from maxing out the $6,000 spending cap on U.S. supermarket purchases, and then you’d continue to earn 1 percent on all other U.S. supermarket purchases for the year. Those earnings, plus the earnings from your gas station purchases and miscellaneous spending will bring you to $636.73 in cash back for the year.

This is considerably more than the ongoing $95 annual fee you’ll pay. Add in the welcome bonus, and you’ll offset the fee even more.

If you want to earn a welcome offer

As mentioned, this card comes with a generous welcome bonus — you can earn a $250 statement credit after you spend $3,000 on your card within the first six months of account opening. If you have a large purchase coming up, this welcome bonus could help to significantly offset your spending.

If you’re looking for an intro APR offer

The Amex Blue Cash Preferred also lets you enjoy a 0 percent introductory APR on purchases and balance transfers for 12 months, followed by a variable APR of 19.24 percent to 29.99 percent. This makes this card an attractive option for cardholders who need to make a large purchase and pay it off slowly over time or consolidate existing card debt with a balance transfer.

If you’re interested in other cardholder perks

There are other cardholder perks you get when you sign up for the Amex Blue Cash Preferred, including:

• Car rental loss and damage insurance
• Access to a Global Assist hotline
• Amex purchase protection
• Return protection
• Amex Pay It Plan It

Make sure to consider the full list of Amex Blue Cash Preferred benefits and whether you’ll use them before you commit.

If you want to earn additional rewards through Amex Offers

Amex Offers is a free benefit that comes with your eligible American Express credit card. This program includes limited-time deals that you can activate in your account in order to earn cash back on qualifying purchases with select retailers and brands. And remember, the cash back you can earn with Amex Offers is separate from the rewards you earn with your credit card.

When is the Amex Blue Cash Preferred not worth it?

No card is perfect for everyone, and the Amex Blue Cash Preferred is no exception. Here are some situations where you might want to skip this card and consider a different cash back rewards card instead:

If you want more redemption options

One major factor to consider with the Amex Blue Cash Preferred is its very basic rewards program. This card offers cash back on eligible purchases in the form of “Reward Dollars,” which can be redeemed for statement credits with no minimum redemption amount or for purchases at Amazon.com.

If you want a credit card with rewards you can redeem for gift cards, merchandise, travel or other flexible options, you may want to consider a different cash back card option or even a travel credit card.

If you don’t want to pay an annual fee

The Amex Blue Cash Preferred has a $0 intro annual fee for the first year, then an annual fee of $95. While the rewards potential can make this card worth the annual fee, keep in mind that there are other American Express credit cards with similar rewards structures and no annual fee.

For example, the Blue Cash Everyday® Card from American Express doesn’t charge an annual fee and you can earn:

• 3 percent cash back at U.S. supermarkets, at U.S. gas stations and on U.S. online retail purchases on up to $6,000 per calendar year in purchases in each category (then 1 percent back)
• 1 percent cash back on other purchases

Like with the Amex Blue Cash Preferred, you can redeem cash back in the form of statement credits or for purchases at Amazon.com. The Amex Blue Cash Everyday also includes a welcome offer in the form of a $200 statement credit after you spend $2,000 in purchases on your new card within the first six months.

Should you get the Amex Blue Cash Preferred?

While the Amex Blue Cash Preferred could work for almost anyone, some customers might love this card more than others. Here’s who we think is a great match for the card, plus those who are better off getting something else:

Who should get the Amex Blue Cash Preferred

• Anyone who spends at least $6,000 at U.S. supermarkets each year
• Commuters who spend a lot of money on U.S. gas station or transit purchases
• People who want a low introductory APR offer on purchases
• Anyone who wants to redeem rewards for statement credits primarily
• People who don’t mind paying an annual fee for a credit card after the first year
• Consumers with good to excellent credit

Who should not get the Amex Blue Cash Preferred

• People who don’t spend very much money on groceries, gas or transit
• People who are averse to paying credit card annual fees
• Travel enthusiasts who prefer to earn and redeem rewards for travel-related purchases
• Someone who wants a card with travel benefits, such as annual travel credits, elite hotel status or airport lounge access

The bottom line

The Amex Blue Cash Preferred is one of the most popular cash back credit cards on the market today, and it’s worth considering if you spend a lot of money on groceries, gas or transportation. Using your card for all of your regular spending will help you to rack up more cash back throughout the year, but you’ll get the most bang for your buck if you focus on using this card in as many bonus categories as you can.

Still, there are plenty of other top rewards credit cards to consider, including American Express credit cards with different earning structures, rewards programs or fees. It’s always best to shop around for a card that’s right for you and your financial needs. Make sure to compare several top credit cards from different issuers before you decide, and consider pairing a few cards that offer complementary benefits and perks.