The Blue Cash Preferred Card from American Express has long been a favorite among credit card pundits for its generous cash back on everyday essentials. Recently, however, the card upped its annual fee from $75 to $95, causing some consumers to question whether it’s still a good deal. Well, the good news is that even with the rise in the annual fee, the AmEx Blue Cash Preferred Card still ranks among the best cash-back credit cards—here’s why:
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Blue Cash Preferred® Card from American Express
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$95 first year
$95 after first year |
Earn $150 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive the $150 back in the form of statement credits. Read Review » |
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Blue Cash Preferred® Card from American Express |
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1. The Impressive Cash-back Rewards:
The AmEx Blue Cash Preferred Card offers a whopping 6% cash back on groceries (up to $6,000 and then 1% on the remaining amount); 3% on gas and select department store purchases and 1% on all other purchases. As there are few things that the average American family spends more on than food and gas, those points should add up quickly, meaning that it won’t take long to more than make up for the card’s annual fee.
2. The Generous Special Sign-up Offer:
Adding to the card’s allure is the enticing bonus offer. New card holders will get $250 cash back after they spend $1000 in the first three months. Consumers can earn an additional 5% cash back on $4,000 worth of eligible travel expenses charged to the card in the first six months (up to $200). Qualifying travel purchases include such things as airfare purchased directly from airlines, hotel accommodation, car rentals, tours, and cruises.
3. 0% APR:
The AmEx Blue Cash Preferred Card is also offering 0% intro APR on purchases and balance transfers for the first 12 months. This is a good chance to transfer any debt you may have on interest-bearing cards. After the first year, APR increases to a variable rate of 13.24% to 23.24%, based on your creditworthiness and additional factors.
4. More Shopping Benefits:
Though these benefits tend to be woefully underused by consumers (see recent story), the card also features coveted perks like extended warranty coverage, purchase protection, and return protection. As long as you use the card to make the purchase, the AmEx Blue Cash Preferred Card will extend your warranty for up to a year. The card will also cover items for up to 90 days after purchase if they are accidently damaged or stolen. Return protection means the card will refund you for eligible purchases within 90 days, up to $300 per item to a maximum of $1,000.
5. Nice Additional Perks:
Finally, benefits like travel accident insurance, car rental loss and damage insurance, Global Assist hotline and the Roadside Assist hotline are nice extras, especially if you travel a lot.
In all, despite the higher annual fee, the AmEx Blue Cash Preferred Card has a lot to offer the majority of us who spend most of our money on groceries, gas and department store purchases.
[Image via Getty]