Pros and Cons Review of the Blue Cash Preferred Card from American Express
Do you find yourself spending a lot of supermarkets and gas stations? If the answer is yes, the Blue Cash Preferred card will work for you. This rewards card offers significant reward points if you use it correctly. However, there are also some downsides to using it. This article will list both the good and the bad of the Blue Cash Preferred card. By the end of this article, you will know if the Blue Cash Preferred card is a good fit for you.
Blue Cash Preferred Card Pros
0 Percent Introductory APR on Balance Transfers
The Blue Cash Preferred card offers a 0 percent introductory APR on balance transfers. You have 60 days to transfer your balances, and you’ll have 12 months to pay them interest-free. This has the potential to help you pay off a significant portion of your debt quicker. You’ll also end up paying less because there won’t be additional interest. This zero percent APR also counts on purchases you make within the first 12 months.
So, if you have trouble keeping track of your rewards, the Blue Cash Preferred card can help. This card doesn’t have individual categories, just cash back. This way, you’ll always know what you’re going to get. You’ll be able to keep track of your cash back rewards with ease.
Significant Reward Potential
The Blue Cash card offers a huge rewards potential for its card holders. Shop at US supermarkets a lot, and you’ll get 6 percent cash back! Once you purchase $6,000 worth of items, this falls to 1 percent, but you’re still saving. You have to make sure you’re shopping at approved stores to be eligible for the 6 percent cash back. Also, if you purchase gift cards at those recognized stores, you’ll get the 6 percent cash back. A few of the stores that are eligible are FreshDirect, Pathmark, Whole Foods, and Winn-Dixie. If you commute a lot, there is cash back at gas stations as well. You’ll earn 3 percent cash back on any fuel purchases. Also, if there is a convenience store inside the gas station, this counts as well.
Once you sign up and obtain your Blue Cash Preferred card, you can get a bonus. To get this sign up bonus offer, you have to spend $1,000 within the first three months. If you do this, you’ll get a $150 credit on your statement. This can give you a boost to finish paying off your balance.
Blue Cash Preferred Card Cons
Cap on the Rewards
Even though this card has a nice rewards program, it has a cap. Once you hit this cap, the rewards start to drop. If you spend $6,000 before your year is up, the rewards will drop from 6 to 1 percent cash back. The most cash back you will earn with the 6 percent is $360 per year.
High Annual Fee
This is a rewards card, and they’re known to have higher annual fees. This Blue Cash Preferred card is no exception. It has a $95 annual fee after the first year. You have to figure out if the rewards are worth this yearly charge. If you spend just over $30 each week at the grocery store, you will break even. However, if you combine this with a weekly fuel for two cars, it would all be profit. Since you get cash back only, you’ll be able to tell if it’s paying off or not.
Foreign Transaction Fee
If you plan to travel, this card might not be a great choice. It has a 2.7 percent foreign transaction fee. This means that each time you buy something outside of the US, this will get added on. If you travel a lot, this could quickly become expensive. Also, it doesn’t go toward your rewards amount, and it attaches to every purchase. So technically, you’re getting charged just for using your credit card.
Not as Widely Accepted
A wide range of vendors doesn’t take the Blue Cash card. It isn’t as well known as Visa or MasterCard, which can be a downfall. If you choose this card, it might be a good idea to carry a more widely accepted card. You can use this as a backup in case your Blue Cash card isn’t accepted by the vendor.
Final Thoughts on the Blue Cash Preferred® Card from American Express
This rewards card is an excellent tool if you use it correctly. The generous 6 percent can earn you a nice cash back bonus just for using the card. So, if you do a lot of grocery shopping and qualify, consider this card. Other cards worth considering is the Blue Cash Everyday® Card and the Citi® Double Cash Card.
The same is true for if you commute a lot. You can make this card work for you. Finally, it takes a little strategy, but the payoff is generally worth it. Next time you’re shopping for a rewards card, don’t forget the Blue Cash Preferred card.
CreditFast has reviewed the best cash back credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each cash back credit card. We have chosen credit card offers based on our editor’s recommendations.