Amex Blue Cash Preferred Review: A Lucrative Rewards Program and a Big Welcome Offer

The cash back rewards on the Blue Cash Preferred® Card from American Express are about as impressive as it gets. It earns a staggering 6% back at U.S. supermarkets ($6,000 annual spending cap), as well as 3% back on transit and at U.S. gas stations. Terms apply. New cardholders can also score a sizable welcome offer. Find out more about this card's features and see how much it can save you in our Blue Cash Preferred® Card from American Express review.

This credit card is a good fit for: Consumers who spend quite a bit on groceries and gas. Families are well suited to get the most value from this credit card's bonus categories.

Top perks

The Blue Cash Preferred® Card from American Express has a great lineup of popular credit card benefits.

Up to 6% cash back

This card has stellar cash back rates, as you earn:

• 6% back at U.S. supermarkets, capped at $6,000 per calendar year
• 6% back on select U.S. streaming subscriptions
• 3% back at U.S. gas stations
• 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses, and more
• 1% back on other purchases
• Terms apply

A 6% cash back rate is among the highest we've seen from any credit card. What makes it even better is that you can earn that on groceries, one of the biggest monthly expenses for most consumers. With that and its gas, streaming, and transit rewards, this card can help you save quite a bit on everyday purchases.

See more cards offering big rewards: Best Cash Back Credit Cards

0% intro APR offer

The Blue Cash Preferred® Card from American Express has a full-featured lineup of perks, including a long 0% intro APR offer of 12 months for purchases and balance transfers. A go-to 18.99%-29.99% Variable rate applies after the intro period.

$250 welcome offer

You can earn $250 in statement credits when you spend $3,000 in purchases on your card within the first six months. As far as cash back cards are concerned, this is one of the biggest welcome bonuses we've seen, and most other cards only give you 90 days to reach your spending requirement. Terms apply.

Find more valuable bonuses: Best Sign-Up Bonus Credit Cards

Travel and purchase protections

American Express cards typically include a nice list of complimentary protections that cover eligible purchases. This one is no exception. It offers:

• Rental car insurance*
• Purchase protection**
• Return protection***
• Extended warranty**

Terms apply.

$120 annual Equinox credit

This card offers up to $120 back annually, in $10 monthly statement credits, for an Equinox+ membership. To receive the benefit, you must enroll in your American Express card account. Terms apply.

Equinox+ is a fitness app with at-home workouts that normally costs $39.99 per month. If you've been interested in signing up, then the Blue Cash Preferred® Card from American Express can save you $10 per month on a membership.

Related: Read The Ascent's guide to the Best American Express Credit Cards.

What could be improved

Although it has fantastic perks, the Blue Cash Preferred® Card from American Express also has a couple drawbacks worth mentioning.

Annual fee

The Blue Cash Preferred® Card from American Express charges a $0 annual fee for the first year, but you'll pay $95 per year after that (see rates and fees). The cash rewards this card offers can easily make up for that annual fee. For example, if you spend $6,000 at U.S. supermarkets per year, you'll earn $360 from that alone.

Do your own math to make sure the benefits of this card are worth the cost. If you aren't a big spender, a no-annual-fee credit card may work better for you.

RELATED: Best No Annual Fee Credit Cards

Foreign transaction fee

The Blue Cash Preferred® Card from American Express charges a 2.7% foreign transaction fee. This fee applies to purchases made in a foreign currency or with foreign merchants (see rates and fees).

Between the card's foreign transaction fee and the fact that most of its bonus categories are only valid with U.S.-based businesses, you probably wouldn't want to use it as a travel card.

A FICO® Score of 670 or higher is best when applying for the Blue Cash Preferred® Card from American Express. As one of the top rewards credit cards, it's targeted at consumers who have credit scores in the good credit to excellent credit range.

American Express uses several factors to evaluate your creditworthiness. Your credit score isn't the only thing that's important, but it does play a large role.

Boost your chances: How to Increase Your Credit Score

After the first year, your annual fee will be $95 for the Blue Cash Preferred® Card from American Express. But when you consider its benefits and its sky-high cash back rates, this card easily justifies the cost for most people.

Here's a hypothetical example of how much you could earn with this card per year:

With a reasonable spending total of $1,620 per month, you'd earn at least $578 cash back each year. After subtracting the annual fee, you're still coming out $483 ahead.

It's worth noting that you need to have high spending in this card's bonus categories to take advantage of its rewards. If you don't, you're better off going through other credit card reviews to find one that works more with your spending habits.

LEARN MORE: A Complete Guide to Amex Blue Cash Preferred Benefits

You spend at least $350 per month across its bonus categories and you want to earn cash back rewards. Here are the most common situations where the Blue Cash Preferred® Card from American Express would be one of the best credit cards to add to your wallet:

• You're looking for a card that offers big rewards for a reasonable annual fee.
• You spend a lot on groceries, gas, streaming services, and/or transit expenses.
• You'd like a solid card with travel and purchase protections

Learn more: Best Rewards Credit Cards