The Blue Cash Preferred® Card from American Express is a standout credit card, particularly for those who spend heavily on groceries, streaming services, and transit. With its lucrative cash-back rates and robust benefits, this card is designed to reward everyday spending while also providing value-added perks. In this guide, we’ll delve into the key features of the Blue Cash Preferred® Card, how to maximize its rewards, and walk you through the application process.
Key Features of the Blue Cash Preferred® Card
1. High Cash Back on Groceries One of the most attractive aspects of the Blue Cash Preferred® Card is its 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). This makes it an excellent choice for families or individuals who spend significantly on groceries. This high cash-back rate is among the best in the market and can lead to substantial savings over time.
2. Cash Back on Streaming Services As streaming services continue to grow in popularity, the Blue Cash Preferred® Card has adapted by offering 6% cash back on select U.S. streaming subscriptions. Whether you’re paying for Netflix, Spotify, or other popular services, you can earn significant rewards on these recurring expenses.
3. Transit and Gas Rewards For those who commute or spend on transit, this card offers 3% cash back on transit, which includes rideshares, buses, parking, tolls, trains, and more. Additionally, you earn 3% cash back at U.S. gas stations. These categories are ideal for individuals who frequently travel for work or leisure.
4. 1% Cash Back on Other Purchases All other purchases with the Blue Cash Preferred® Card earn 1% cash back. While this rate is standard compared to other cash-back cards, the value lies in the elevated cash-back rates in specific categories like groceries, streaming, and transit.
5. Introductory APR Offer The Blue Cash Preferred® Card often comes with an introductory 0% APR on purchases and balance transfers for the first 12 months (then a variable APR applies). This offer is advantageous for those looking to make large purchases upfront or consolidate existing credit card debt.
6. Annual Fee This card comes with a $0 introductory annual fee for the first year, then $95 thereafter. While the fee may seem steep, the high cash-back rates can easily offset this cost for most users.
7. Additional Benefits
- Car Rental Loss and Damage Insurance: When you use your card to reserve and pay for the entire rental, you can be covered for damage to or theft of a rental vehicle.
- Global Assist® Hotline: When you travel more than 100 miles from home, you have access to emergency services like medical and legal referrals.
- Return Protection: If a merchant won’t accept a return, American Express may refund the full purchase price up to 90 days from the date of purchase, subject to a few conditions.
How to Maximize the Rewards
To fully benefit from the Blue Cash Preferred® Card, it’s important to strategize your spending:
- Focus on Groceries and Streaming: The 6% cash back on groceries and streaming services is where this card shines. Make sure to use your card for all your supermarket and streaming service purchases.
- Track Your Spending: Remember that the 6% cash-back rate on groceries is capped at $6,000 per year. After hitting the cap, you’ll earn 1% on supermarket purchases, so keep an eye on your grocery spending to maximize rewards.
- Use the Card for Transit and Gas: If you commute, make sure to charge your transit and gas expenses to the card to take advantage of the 3% cash-back rate in these categories.
- Plan Large Purchases: Take advantage of the introductory 0% APR period for large purchases or to pay off existing credit card debt. Just be sure to pay off the balance before the promotional period ends to avoid interest charges.
- Redeem Rewards Smartly: Rewards can be redeemed as statement credits, which can effectively lower your credit card bill. While you can also redeem for gift cards and merchandise, statement credits generally offer the best value.
The Application Process
Applying for the Blue Cash Preferred® Card is a straightforward process. Here’s a step-by-step guide:
- Check Your Credit Score: The Blue Cash Preferred® Card is best suited for individuals with good to excellent credit (typically a FICO score of 670 or higher). If your score is lower, consider taking steps to improve it before applying.
- Gather Necessary Information: Before applying, make sure you have all the required information handy. This includes your Social Security number, income details, employment information, and monthly housing costs.
- Apply Online: The easiest way to apply for the Blue Cash Preferred® Card is through the American Express website. Simply navigate to the card’s page, click on the “Apply Now” button, and fill out the application form with your personal and financial details.
- Review the Terms and Conditions: Before submitting your application, review the card’s terms and conditions carefully. Make sure you understand the interest rates, fees, and the rewards structure.
- Submit Your Application: Once you’ve filled out the form and reviewed the terms, submit your application. American Express typically provides an instant decision, but in some cases, it may take a few days if further review is needed.
- Receive Your Card: If approved, you’ll receive your Blue Cash Preferred® Card in the mail within 7-10 business days. Upon receiving your card, activate it immediately and start using it to earn rewards.
- Set Up Online Access: Once you receive your card, set up online access through the American Express website or mobile app. This will allow you to manage your account, track rewards, and pay your bill.
Who Should Consider the Blue Cash Preferred® Card?
The Blue Cash Preferred® Card is ideal for:
- Families: If you have significant grocery bills, this card’s 6% cash-back rate at U.S. supermarkets can lead to substantial savings.
- Frequent Commuters: Those who spend heavily on transit or gas will appreciate the 3% cash back in these categories.
- Streaming Enthusiasts: If you subscribe to multiple streaming services, the 6% cash back on select U.S. streaming subscriptions is a valuable perk.
- Those Who Want to Maximize Cash Back: If you’re looking for a card that offers high cash-back rates in popular spending categories, the Blue Cash Preferred® Card is a strong choice.
Conclusion
The Blue Cash Preferred® Card from American Express is one of the best cash-back credit cards on the market, particularly for those who spend heavily in its bonus categories. With its high cash-back rates, valuable perks, and the potential to offset the annual fee with everyday spending, it’s a card that can offer significant value to the right user. By understanding its features and maximizing the rewards, you can make the most out of this powerful financial tool.
