Plenty of great rewards credit cards can help you save on your most frequent purchases — but few offer as much long-term value as the Blue Cash Preferred® Card from American Express.

Despite its annual fee, this cash-back credit card can deliver ample annual savings for families, home chefs, commuters, and everyone in between. Here's everything you need to know before applying.

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Blue Cash Preferred® Card from American Express

Rates & fees, terms apply

• Annual fee
  $0 intro annual fee for the first year, then $95.
• Welcome offer
  Earn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 months
• Recommended credit score
  Excellent,Good
• Introductory Purchases APR
  0% on purchases for 12 months
• Ongoing Purchases APR
  18.49%-29.49% Variable
• Introductory Balance Transfer APR
  0% on balance transfers for 12 months
• Ongoing Balance Transfer APR
  18.49%-29.49% Variable

• Rewards rate
  • 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% cash back on transit and U.S. gas stations
  • 1% cash back on all other purchases
  • *Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout

• Benefits
  • Generous intro APR on purchases and balance transfers
  • Receive a monthly statement credit of $7 when you spend $9.99 or more each month on an auto-renewing Disney Bundle subscription (valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.)
  • Enjoy $0 intro plan fees for the first 12 months when you use Plan It® to split up large purchases into monthly installments

Intro APR offer

You can get a lot of bandwidth from the Blue Cash Preferred’s 12-month introductory 0% APR offer, which applies to both new purchases and balance transfers. When the intro period ends, the standard APR will apply to any remaining balance.

If you choose to do a balance transfer with this card, you must request the transfer within 60 days of account opening to qualify for the intro offer. You’ll also pay a balance transfer fee equal to 3% of your transferred balance or $5, whichever is greater.

How to earn rewards

The best way to earn rewards with your Blue Cash Preferred Card is to use it for your everyday purchases that fall into bonus categories.

You should be aware of what does and doesn't count toward your rewards earnings in bonus categories, though. For example, the U.S. supermarket category will likely cover most of your regular food stores, but superstores, warehouse clubs, convenience stores, and meal-kit services don’t count. Amex also has a specific list of U.S. streaming subscriptions that count toward the card’s other 6% category, including Audible, Disney+, Hulu, MAX, Netflix, Peacock, Prime Video, SiriusXM, Spotify, Youtube TV, and more.

The 3% transit category is broad; it includes fares for trains, ferries, buses, subways, taxis, and rideshare services, as well as parking and tolls. Finally, to earn 3% at U.S. gas stations, Amex specifies that gasoline sales must be the merchant’s primary business. That means superstores or warehouse clubs that sell gas may not count toward your rewards in this category.

Altogether, we estimate that the average American household can potentially earn over $500 in cash back each year with a Blue Cash Preferred card, after accounting for its annual fee (based on annual Consumer Expenditure data from the Bureau of Labor Statistics).

How to redeem rewards

You’ll have two options for redeeming your Blue Cash Preferred Card rewards: Trade them in for statement credits toward your account or use them toward eligible purchases at Amazon.com. There’s no minimum amount required to redeem your rewards.

Additional benefits

These added benefits may not be the main draw of the Blue Cash Preferred Card, but they could save you a significant amount of money when you need them:

• Disney Bundle credit: Get up to $84 in annual statement credits ($7 monthly; with enrollment) after spending at least $9.99 per month on an eligible, auto-renewing subscription to the Disney Bundle. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.

• Amex Offers: Add eligible offers to your card account to receive discounts or boosted rewards earnings with select brands. You must enroll in an offer and use it before the expiration date to qualify.

• Car rental loss and damage insurance*: When you use your card to pay for a rental car, you can qualify for insurance against damage or theft in covered locations. Make sure you read your card agreement for the details; this benefit isn’t available everywhere or for all rental cars and only provides secondary coverage.

• Purchase and return protection*: Your eligible purchases are covered for up to 90 days against damage or theft with purchase protection. Return protection allows you to return eligible purchases for up to 90 days if you cannot return to the seller. Limits apply for both of these benefits.

• Extended warranty*: Get up to one year of extra warranty protection for eligible purchases with a manufacturer’s warranty of five years or less; 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.

Who is the Blue Cash Preferred best for?

The Blue Cash Preferred Card from American Express is a versatile and valuable cash-back card that can work for nearly anyone’s wallet. Its rewards categories cover a range of everyday purchases and cash-back rewards are easy to redeem for statement credits or future Amazon purchases. Plus, it has a solid intro APR offer, annual benefits that can help make up the cost of the annual fee, and a welcome bonus greater than many other cash-back cards today.

However, there are a few reasons the Blue Cash Preferred may not work best for you.

For one, it does have a modest annual fee (after a first-year introductory $0 fee). Many cardholders may find it easy to offset this cost — you’ll earn around $96 in cash back after spending just $1,600 annually ($133 per month) at U.S. supermarkets, before even accounting for rewards in other categories. But if you think you'll have trouble cashing in on this card’s rewards and benefits year after year, consider a no-annual-fee rewards credit card instead.

You may also want to consider a different card if you frequently travel abroad. Many of the Blue Cash Preferred’s rewards categories only apply for purchases in the U.S. (U.S. supermarkets, select U.S. streaming subscriptions, and U.S. gas stations). You won’t be able to maximize international spending in these categories. On top of that, you’ll pay a 2.7% foreign transaction fee on every international purchase — which can quickly add up for frequent travelers.

Blue Cash Preferred® Card from American Express

Rates & fees, terms apply

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Check out more of our top rewards credit cards

Blue Cash Preferred pros

• Great potential cash-back earnings (and one of the highest rewards rates you’ll find for U.S. supermarkets today)

• Simple cash-back rewards redemptions

• Introductory 0% APR

• Valuable welcome bonus

Blue Cash Preferred cons

• Spending cap for top rewards rate

• Annual fee

• Some exclusions for earning rewards in bonus categories

Where can you use the Blue Cash Preferred from Amex?

You can use this card anywhere American Express cards are accepted. In the U.S., 99% of merchants who accept credit cards accept Amex, so you shouldn’t have a problem at home.

You might find international acceptance more difficult than credit cards on other networks, but Amex says its cards are now accepted at more than 89 million locations globally. Also keep in mind that this card does charge foreign transaction fees. So even if your card is accepted abroad, you’ll pay more for each purchase outside of the U.S.

How to make a Blue Cash Preferred card payment

• Online through your card account

• Via mobile app

• Set up automatic payments

• By phone: 1-800-427-9297

• By mail:
  American Express
  P.O. Box 96001
  Los Angeles, CA 90096-8000

Blue Cash Preferred Card from American Express customer service info

Amex customer service is available 24/7. You can reach out using the following info.

• Phone number: 1-800-528-4800

• Chat with a representative online or within the mobile app when you’re logged in.

• Blue Cash Preferred online login page

Alternative cards to consider

If you’re not sure the Blue Cash Preferred from Amex is right for you, consider these other cash-back credit cards:

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Blue Cash Everyday® Card from American Express

Rates & fees, terms apply

• Annual fee
  $0
• Welcome offer
  Earn a $200 statement credit after spending $2,000 within the first 6 months
• Recommended credit score
  Excellent, Good
• Introductory Purchases APR
  0% on purchases for 15 months
• Ongoing Purchases APR
  18.49%-29.49% Variable
• Introductory Balance Transfer APR
  0% on balance transfers for 15 months
• Ongoing Balance Transfer APR
  18.49%-29.49% Variable

• Rewards rate
  • 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
  • 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%)
  • 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%)
  • 1% cash back on all other purchases
  • Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout

• Benefits
  • Generous intro APR on purchases and balance transfers
  • Get a $7 monthly statement credit after spending $9.99 or more on a streaming subscription to the Disney Bundle, plus earn up to $15 in monthly statement credits after purchasing a Home Chef subscription

Why we like it: The Blue Cash Everyday Card is a solid no-annual-fee alternative to the Blue Cash Preferred. It has a similar welcome offer and a slightly longer 0% APR intro offer. For ongoing rewards, the Blue Cash Everyday earns 3% cash back at U.S. supermarkets, on U.S. online retail purchases, and at U.S. gas stations, all up to the first $6,000 spent in the category each year (then 1%). Every other purchase earns 1% cash back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Read our full review of the Blue Cash Everyday Card from American Express

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Capital One Savor Cash Rewards Credit Card

• Annual fee
  $0
• Welcome offer
  Earn $250 cash back after spending $500 on purchases in the first 3 months
• Card type(s)
  Cash-back, Rewards
• Introductory APR
  0% intro APR on purchases and balance transfers for 15 months, then variable 19.74% - 29.74% APR
• Purchase APR
  19.74% - 29.74% variable
• Recommended credit score
  Good, Excellent

• Rewards rate
  • 8% cash back on Capital One Entertainment purchases
  • 5% cash back on hotels and rental cars booked through Capital One Travel
  • 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)
  • 1% cash back on all other purchases

• Benefits
  • Get a 0% APR on purchases and balance transfers for the first 15 months
  • No foreign transaction fees

Why we like it: The Savor card from Capital One also has no annual fee and rewards categories focused on everyday spending. You’ll get a 0% intro APR on new purchases and balance transfers, plus an easy-to-earn welcome offer. The Savor Cash Rewards Card has several ongoing cash-back rewards categories: 8% on Capital One Entertainment purchases; 5% on hotels and rental cars booked through Capital One Travel; 3% cash back at grocery stores (not including Target and Walmart), on dining, entertainment, and popular streaming services; and 1% on all other purchases.

Read our full review of the Capital One Savor Cash Rewards Credit Card

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Chase Freedom Unlimited®

• Annual fee
  $0
• Welcome offer
  Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back
• Recommended credit score
  Excellent/Good
• Introductory Purchases APR
  0% Intro APR on Purchases for 15 months
• Ongoing Purchases APR
  19.99% - 28.74% Variable
• Introductory Balance Transfer APR
  0% Intro APR on Balance Transfers for 15 months
• Ongoing Balance Transfer APR
  19.99% - 28.74% Variable

• Rewards rate
  • Enjoy 5% cash back on travel purchased through Chase Travel℠
  • 3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service)
  • 1.5% on all other purchases

• Benefits
  • You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts
  • Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more
  • Generous intro APR on purchases and balance transfers

Why we like it: For some cardholders, the Chase Freedom Unlimited could have the most valuable welcome offer on our list. You can earn an extra 1.5% cash back on every purchase you make over the first year, up to the first $20,000 you spend — worth up to $300 in bonus cash back. You’ll earn those extra rewards on the card’s ongoing rewards categories, which include 5% on travel through Chase Travel℠, 3% on drugstore purchases, 3% on dining at restaurants, and 1.5% on all other purchases. Chase Freedom Unlimited also has no annual fee and a 0% intro APR on new purchases and balance transfers.

Read more about the Chase Freedom Unlimited’s current welcome bonus offer

This article was edited by Alicia Hahn

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