Blue from American Express® Review: A Basic Rewards Credit Card With No Annual Fee

Name: Blue from American Express®
Brand: American Express

By: Lyle Daly | Aug. 24, 2020

Aug. 24, 2020

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The Blue from American Express® could be considered to be American Express's starter rewards card. You can qualify for it with a lower credit score than you'd need for the very best credit cards, but the trade-off is that it doesn't offer nearly as many benefits. To help you figure out if this is the right card to build your credit, our Blue from American Express® review will break down its good points and where it could improve.

Ratings Methodology

Compare this Card

Great for: Limited or no credit history Blue from American Express®

Rating image, 3.5 out of 5 stars.

3.5 stars

Bottom Line

One of the few American Express cards available for people with low credit. The 1x earn rate for purchases is a welcome addition in a category where rewards are rare.

Credit Rating Requirement: New/Rebuilding:

Rewards

1x points on all purchases

Annual Fee

Intro APR

Purchases: N/A
Balance Transfers: N/A

Ongoing APR

23.99%, variable

Bonus

N/A

Highlights

Earn 1X Membership Rewards® point for every eligible dollar you spend.
No annual fee.
Free ShopRunner Membership.
Online Year-End Summary of Purchases.

Full Blue from American Express® review

Top perks

No annual fee: If you're unfamiliar with credit card rewards, starting out with a no annual fee card is a smart choice.

Unlimited 1 point per $1: You'll get 1 Membership Rewards point for every $1 you spend with your Blue from American Express®, and there's no limit to how many points you can earn.

Earn double points on American Express Travel reservations: If you book travel purchases such as prepaid hotel stays, vacation packages, and cruises through the American Express Travel portal, you'll earn 2 points per $1.

ShopRunner membership: American Express cardholders receive a free ShopRunner membership, which gives you unlimited free shipping and returns with a number of online retailers. This membership is worth $79 per year.

Car rental loss and damage insurance: This covers you if a vehicle you rent is damaged or stolen. For this insurance to apply, you'll need to pay for the rental with your Blue from American Express® and decline the collision damage waiver. Some exclusions and restrictions can apply.

What could be improved

Rewards rate: While other American Express cards come with bonus categories that will net you 2 or 3 points per $1, the vast majority of your purchases with this card will only get you 1 point per $1. That rewards rate falls short of what some credit cards for average credit offer.

Point redemption options: Although this card technically earns Membership Rewards points, it doesn't offer the full range of redemption options you'd get with other American Express rewards cards. You can't transfer points to any of the airline or hotel partners in that rewards program, and transfers tend to offer the most value.

Most of the ways you can redeem your rewards with this card will only get you between $0.005 and $0.007 per point. At best, you can get up to $0.01 per point if you use your points to purchase gift cards.

No welcome offer: You won't get any bonus points for opening the Blue from American Express®.

Foreign transaction fee: You'll be charged a 2.7% foreign transaction fee on all purchases made abroad, so this isn't a great card to travel with.

Suggested credit score

You have a high chance of getting approved for the Blue from American Express® if you have a good credit score, which is a FICO® Score of 670 or above. This is one of the easiest Membership Rewards cards to open, and even consumers with average credit scores have a decent chance of approval.

Alternatives to consider

If you're building or rebuilding credit: The Discover it® Secured is a good option to improve your credit. It's a secured credit card, meaning your credit limit is restricted to the refundable security deposit provided when opening an account. Cards in this category typically water down their rewards, but this one bucks that trend -- cardholders earn 2% back on gas and restaurants (up to a $1,500 quarterly spending cap) and 1% back on all other purchases.
If you're a student and want more rewards: The Discover it® Student Cash Back is a fantastic card for establishing credit. It doesn't charge unnecessary fees, and Discover will even automatically waive one late fee. Each quarter, it offers 5% cash back on up to $1,500 of quarterly spending in rotating quarterly bonus categories you activate.

As of Nov. 25, 2020


Discover it® Secured	Discover it® Student Cash Back
Rating image, 5.0 out of 5 stars. 5.0 stars	Rating image, 5.0 out of 5 stars. 5.0 stars
Apply Now On Discover's Secure Website.	Apply Now On Discover's Secure Website.
Read Full Review	Read Full Review
Rates & Fees	Rates & Fees
Credit Rating Requirement: Fair/New to Credit:	Credit Rating Requirement: Fair/New to Credit:
Bonus: Dollar-for-dollar match of all cash back earned the first year	Bonus: Dollar-for-dollar match of all cash back earned the first year
Rewards Program: 2% cash back at Gas Stations and Restaurants on up to $1,000 in purchases each quarter, 1% cash back on all else	Rewards Program: Cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Unlimited cash back on all other purchases - automatically
Intro APR: Purchases: N/A Balance Transfers: 10.99%, 6 months	Intro APR: Purchases: 0%, 6 months Balance Transfers: 10.99%, 6 months
Regular APR: 22.99% Variable APR	Regular APR: 12.99% - 21.99% Variable APR
Annual Fee: $0	Annual Fee: $0
Highlights: No Annual Fee, earn cash back, and build your credit with responsible use. It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history. Establish your credit line by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit. Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit. Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically. Discover is accepted nationwide by 99% of the places that take credit cards. Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.	Highlights: INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years. No annual fee. No late fee on first late payment. No APR change for paying late. Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more. Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds. Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free. Discover is accepted nationwide by 99% of the places that take credit cards. 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% - 21.99% applies.
Apply Now On Discover's Secure Website.	Apply Now On Discover's Secure Website.
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This credit card is right for you if:

The Blue from American Express® is worth checking out if you're building or rebuilding your credit, since it's among the easiest American Express cards to qualify for. Although it doesn't have a high rewards rate, it will earn you points on all your spending. Most importantly, if you don't run your balance too high and you pay on time every month, you'll build a positive credit history and see your credit score go up.

About the Author

Lyle Daly

Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.

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