Which Amex Blue Cash Card Is Right for You?

Both the Blue Cash Everyday Card from American Express and the Blue Cash Preferred Card from American Express—to help you decide which Blue Cash card is right for you.

The post Which Amex Blue Cash Card Is Right for You? appeared first on LendEDU.

If you’re looking for a cash back credit card from American Express, the company offers two excellent Amex Blue Cash options: The Blue Cash Everyday Card from American Express and the Blue Cash Preferred Card from American Express.

Both American Express cards offer similar rewards, but one offers great cash back rewards for no annual fee, while the other increases those rewards for an annual fee of $95 per year. Both also come with attainable sign-up bonuses and perks you can take advantage of when traveling or shopping. Read more to find out which is best for you.

In this review:

• Read About the Blue Cash Everyday
• Read About the Blue Cash Preferred
• Compare How the Credit Cards Perform

Blue Cash Everyday

Card Details

Recommended Credit Score

Good to Excellent

Our Thoughts on the Blue Cash Everyday Card from American Express

Benefits of the Card

The Blue Cash Everyday Card from American Express is a great Amex cash back card for people who don’t spend a lot of money, but whose budgets commonly include gas and grocery expenses. There are several perks to the card, but the biggest benefit is the fact that there is no annual fee, so you don’t have to be concerned about spending enough to get your fee back via Amex cash back rewards.

Cash Back Rewards

The card provides at least 1% cash back on all purchases, so you’re always earning. But purchases at U.S. Supermarkets will earn you 3% cash back on up to $6,000 in spending per year (for a total of $180 in rewards). Additionally, you’ll 2% cash back on gas and at select U.S. department stores in the U.S.

Cash back rewards come in the form of Reward Dollars, which you can redeem for gift cards, purchases, or as a statement credit once you accrue at least $25 in rewards.

Sign-up Bonus

You’ll also earn a $150 statement credit after you spend at least $1,000 on your new card within the first three months.

Low Intro APR

Another important perk that you get with this credit card is the 0% introductory interest rate for the first 15 months, so you can pay off existing debt or finance a large purchase. While there are cards that provide longer introductory interest rate periods, not all of them also offer great American Express cash rewards. This Amex Blue Cash Card is a great option among bothcash back cards and 0% APR cards.

Other Perks

One of the best things about the card is all the extra benefits that it offers like travel insurance and consumer protections. You’ll get rental car damage waivers, roadside assistance, travel accident insurance, and extended warranties on items you buy with the card.

Downsides of the Card

Although the Blue Cash Everyday card offers a number of great benefits, there are some downsides. First, the spending cap on Supermarket rewards may be low for families with big grocery budgets. You’d only need to spend a little over $115 per week to max out these rewards, after which you’d get just 1% cash back.

Also, American Express is specific about where you can earn your grocery rewards. Most supermarkets dedicated solely to groceries (such as Kroger or Whole Foods) will qualify. But if you do most of your grocery shopping at warehouse clubs like Sam’s Club, BJs, or Costco, you’ll only get 1% cash back.

Finally, the 0% introductory period is not as long as you would get from some competing credit cards and there is a 3% balance transfer fee. There is also a 2.7% foreign transaction fee charged so it’s not a great card to use outside of the country.

Blue Cash Preferred

Card Details

Recommended Credit Score

Good to Excellent

Our Thoughts on the Blue Cash Preferred Card from American Express

Benefits of the Card

The Blue Cash Preferred Card from American Express is a great credit card for those who want generous cash back rewards for gas and groceries and who spend enough to justify paying an annual fee to access these rewards.

Cash Back Rewards

While the credit card offers only 1% back on most purchases, it provides bonus rewards at a very high rate—6% cash back at U.S. Supermarkets and 3% cash back on transit expenses, including public transportation fees, taxi and ridesharing fares, and gas stations. This is more than the Blue Cash Everyday Card from American Express which only pays out 3% at supermarkets and 2% on gas. Those additional savings can add up quickly. If you spend just $1,600 in groceries a year, you will have paid for your annual fee with cash back rewards, and the rest will be profit.

Sign-up Bonus

This card comes with a solid a $250 sign-up bonus after you spend at least $1,000 on your new card within the first three months. You don’t need to spend any more to qualify for this bonus than you would with the Blue Cash Everyday, but you’ll earn $100 more, which more than compensates for the first year’s annual fee. 

Low Intro APR

The card’s introductory interest rate is also beneficial for those who want to pay off debt. While you have to pay a 3% balance transfer fee and the introductory period only lasts 12 months before converting back to a variable rate, it still is likely to help you repay debt more quickly and save money on interest.

Other Perks

Another benefit of the card is all the consumer and travel protection plans that are included. For example, you get return protection, roadside assistance, car rental insurance, extended warranty protection, purchase protection, and travel accident insurance. These protections can come in handy if you run into trouble while on a vacation.

Downsides of the Card

One of the biggest downsides of this Blue Cash card is the fact that there is a $95 annual fee. Before you decide to get this card, you should make sure that you spend enough on your card to justify paying that annual fee. You’ll have to spend $3,166 on groceries in a year to both cover your annual fee and break even in cash back rewards compared to the Blue Cash Everyday card. If you won’t spend that much at eligible supermarkets, you should go with the no-fee card. However, that’s only $60 per week on groceries, a relatively low amount. We think that most people—especially those with hungry families—will fare better with the Blue Cash Preferred than the Everyday card, especially once you add in rewards from all of the other spending categories.

It’s important to note that the Preferred card faces the same restrictions as the Everyday card: you only get rewards on up to $6,000 per year at supermarkets, and grocery store purchases made at wholesale clubs don’t count. If you often shop at places like Sam’s Club or Costco, you might be better off with another card like the store-branded Costco Credit Card.

Another downside is the fact that the introductory interest rate period is shorter than other cards (including the Blue Cash Everyday Card) and that there is a 3% balance transfer fee.

Finally, the 2.7% foreign transaction fee the card charges makes it bad for those who travel out of the country.

Comparison of Family Expenses

Here’s a sample of the cash back rewards you could earn with each card. The amount spent in each category could change drastically based on where you live and how your family spends, so think about your own budgets when making a decision.

Category	Annual Spending	Blue Cash Preferred Rewards	Blue Cash Everyday Rewards
U.S. Supermarkets	$6,000	$360	$180
Streaming Services	$144	$8.64	$1.44
U.S. Gas Stations	$2,600	$156	$52
Eligible Transit Expenses	$200	$6	$2
Eligible Department Stores	$200	$2	$4
Other General Purchases	$6,000	$60	$60
Sign-Up Bonus		$250	$150
Total	$15,144	$842.64	$449.44
Total first-year Rewards after fees		$747.64	$449.44

Bottom Line: Which American Express Blue Cash Card is Right for You?

Both the Blue Cash Everyday Card and the Blue Cash Preferred Card are excellent cash back cards that offer you a balance between great rewards, a good bonus offer, a 0% introductory rate, and great travel and consumer protections.

Which card is best for you will depend primarily on how much you spend. Make sure to calculate how much you will likely earn in rewards before you commit to the Blue Cash Preferred Card and its annual fee. If you find that your spending patterns don’t line up with either card’s rewards, check out the best credit cards from other credit card companies to find the right match for you.

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