Is the American Express Blue Cash Preferred Worth It?
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Written by
Meghan Hunter
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Edited by
Emily Gadd
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Reviewed by
Jasmin Baron
The Blue Cash Preferred® Card from American Express, an advertising partner, differs from typical cash-back credit cards with its $0 intro annual fee for the first year, then $95. However, don’t let the annual fee deter you, as the card also comes with a generous welcome offer and earning rates that can help justify the expense for the right spender.
After using my Amex Blue Cash Preferred Card for over three years and tracking my family’s rising grocery expenses, I’ve learned that the value of the card, like most rewards credit cards, depends entirely on your spending patterns. For many families, it’s a card that more than pays for itself. I’ve earned back more than triple the annual fee each year I’ve held it.
The key is digging into the math and understanding if you’ll benefit from the card’s rewards structure and honestly evaluating whether you’re the type of cardholder who will maximize its earning potential.
Quick Verdict
The first year as a cardholder is a no-brainer with the $0 intro annual fee for the first year, then $95. In subsequent years, the Amex Blue Cash Preferred Card is easily worth its annual fee for most cardholders who spend regularly on groceries.
If you spend at least ~$135 per month on eligible U.S. supermarket purchases, you’ll break even on the annual fee through grocery spending alone. Add in select U.S. streaming and U.S. gas purchases, and most cardholders will earn significantly more than they pay in fees. It’s one of the top cards for groceries and streaming services.
However, if you rarely shop at traditional supermarkets or prefer travel rewards to cash back, you might find better value elsewhere.
Blue Cash Preferred: At a Glance
- Annual fee: $0 intro annual fee for the first year, then $95.
- Welcome offer: Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- Rewards structure: Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). Earn 6% cash back on select U.S. streaming subscriptions. Earn 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). Earn 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Statement credits and perks: Up to $120 per year in Disney streaming credits after enrollment (up to $10 per month), secondary car rental insurance, Global Assist Hotline, purchase protection and extended warranty.
- Estimated value: $200 to $500+ annually for typical households that maximize U.S. supermarket and streaming categories and use the Disney streaming credit.
Who Should Consider the Blue Cash Preferred?
If you shop regularly at traditional U.S. supermarkets, you should consider the Amex Blue Cash Preferred Card. Even spending just $300 monthly on groceries earns back more than double the card’s annual fee. This is why it ranks as one of the best American Express cards for cash back on groceries.
Streaming enthusiasts can also benefit significantly by carrying this card. With most households subscribed to multiple U.S. streaming services (such as Netflix, Spotify and Disney+), the 6% rate adds up quickly. I track my streaming expenses monthly, and between my family’s various subscriptions, we earn an additional $30 to $40 annually in this category alone.
The card also works well for those who drive a decent amount. The 3% rate at U.S gas stations and on transit means your daily commute or weekend road trips generate meaningful rewards. During a long-distance road trip last summer, I earned over $60 in gas rewards — enough for two takeaway meals on the road.
The on up to $6,000 annual cap on U.S. supermarket purchases requires some awareness, as many households will exceed that limit. But having another rewards-earning card to switch spending to can help.
Who Should Skip the Blue Cash Preferred?
Casual spenders who prefer simple, flat-rate rewards and who don’t spend a lot on groceries should look elsewhere. The American Express Blue Cash Preferred Card doesn’t make sense for warehouse club shoppers either, because Amex doesn’t consider warehouse stores like Costco and Sam’s Club eligible for the U.S. supermarket spending bonus.
Additionally, heavy travelers might find better value in travel-focused cards. Unlike specialized travel credit cards that provide comprehensive benefits, the Blue Cash Preferred Card doesn’t offer perks like airport lounge access, travel credits or bonus points for flights and hotels.
Lastly, people with excellent credit who qualify for premium credit cards with higher earning potential should compare options carefully. The benefits that come along with some premium cards could justify higher annual fees.
How To Maximize Blue Cash Preferred’s Value
Shop Smart at Supermarkets
Track your eligible grocery spending throughout the year to maximize the card’s $6,000 bonus spending cap at U.S. supermarkets. The USDA estimates the average family of four spends $1,326 per month on groceries, meaning it would only take five months for many families to max out their earning potential on grocery spending with this card. Afterwards, shift your spending to another card that earns a bonus on groceries.
If you find you can’t meet the $6,000 spending target, get creative. Don’t forget that supermarkets carry more than just food. You can use your Blue Cash Preferred Card to buy household essentials like paper towels and detergent or your kid’s birthday party decorations — it all qualifies for your 6% earnings.
Stack Streaming Subscriptions
Consolidate all of your eligible streaming subscription payments to your Amex Blue Cash Preferred Card to maximize the 6% cash back rate. That way, you won’t miss out on making the most of your subscriptions. And if you subscribe to Disney+, ESPN+ or Hulu, be sure to enroll and use your card to pay for your monthly subscription to take advantage of up to $10 per month in statement credits.
Choose Gas Stations Wisely
Be aware that not all fuel purchases earn 3%. Warehouse clubs, some discount stations and grocery store gas stations are likely ineligible for the bonus cash back. I’ll often keep a mental list of stations that consistently earn bonus rates and route accordingly when convenient.
Time Big Purchases Right
The Blue Cash Preferred Card offers a 0% intro APR on purchases and on balance transfers for 12 months from the date of account opening, then 19.99%-28.99% Variable APR. Consider timing major purchases during this window.
Need a new refrigerator? Use your new Amex Blue Cash Preferred Card to spread the expense across monthly payments without interest charges. Just ensure you can pay off the full balance before the end of the promo period, as the standard APR will apply to any remaining debt and can quickly erode the value of the cash back you’ve earned.
Track Your Break-Even Point
Track your progress toward recovering the annual fee throughout the year. After the first year, most users can easily justify the fee within six months through normal spending, making the remainder of the year pure profit.
Final Verdict on the Amex Blue Cash Preferred
If you spend at least $135 monthly on groceries at eligible U.S. supermarkets and don’t mind tracking categories, this card will likely save you money. Most families I know earn $300+ annually once they get the hang of maximizing categories, making the annual fee worth it. For most, the Blue Cash Preferred Card delivers solid value that justifies its modest cost.
That said, it does require some attention; you can’t just swipe mindlessly. If you prefer simple, hands-off rewards, stick with a flat-rate 2% cash-back card. Those who only shop at warehouse stores, like Costco, should also skip it, since that spending doesn’t qualify for the bonus earnings.
For the Car Rental Loss & Damage Insurance, Purchase Protection and Extended warranty on the Blue Cash Preferred® Card from American Express Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefit sguide for more details. Underwritten by AMEX Assurance Company.
For the Global Assist Hotline on the Blue Cash Preferred® Card from American Express, Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Card Members are responsible for the costs charged by third-party service providers.
Frequently Asked Questions About the Amex Blue Cash Preferred
Is the Blue Cash Preferred better than the Blue Cash Everyday?
If you spend more than $35 weekly at U.S. supermarkets, you’ll come out ahead with the Blue Cash Preferred Card despite the annual fee. The Blue Cash Everyday® Card from American Express, an advertising partner, is a no-annual-fee credit card with lower earning rates, making the Preferred Card better for most households.
What counts as a U.S. supermarket for the 6% rate?
Traditional grocery stores like Safeway, Kroger and Whole Foods typically qualify, but warehouse clubs, discount stores and some specialty markets — think Costco, Sam’s Club and Target — do not. Always test small purchases first to verify category coding.
Does the Blue Cash Preferred Card have foreign transaction fees?
Yes, American Express charges foreign transaction fees on the Blue Cash Preferred Card, making it less ideal for international travel. You’re better off using a card that doesn’t add foreign transaction fees for overseas purchases.
How quickly do I need to spend $3,000 for the Blue Cash Preferred welcome offer?
You have six months from account opening to meet the $3,000 spending requirement on the Blue Cash Preferred Card, which breaks down to $500 monthly. That’s an easily achievable goal through normal grocery and gas spending for most.
