This article is brought to you by the Personal Finance Insider team. It has not been reviewed, approved, or otherwise endorsed by any of the issuers listed. Some of the offers you see on the page are from our partners like Citi and American Express, but our coverage is always independent. Terms apply to the offers listed on this page.
- The Blue Cash Preferred® Card from American Express and the Blue Cash Everyday® Card from American Express both earn bonus cash back at US supermarkets, but there are a few key differences.
- The Blue Cash Preferred card has a $95 (waived the first year if you apply by 12/10/2020) annual fee (See rates) and earns a higher rate of cash back at US supermarkets, while the Blue Cash Everyday card has no annual fee (See Rates).
- With the Blue Cash Preferred, you'll also earn 3% cash back at US gas stations and transit, and with the Blue Cash Everyday you'll earn 2% back at US gas stations and department stores.
- If you spend more than $3,167 at US supermarkets in a year, you'll earn enough cash back to make the Blue Cash Preferred® Card from American Express worth its annual fee.
- See Business Insider's list of the best cash-back credit cards »
American Express markets most of its credit cards with different color combinations. Beyond the Green, Gold, and Platinum cards, a handful of cards are marketed with the "Blue" label.
In this article, we'll take a look at two of American Express's Blue cards — the Blue Cash Preferred® Card from American Express and Blue Cash Everyday® Card from American Express. We'll compare the two cards, look at the pros and cons of each, and help you decide which might be right for you.
We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
Blue Cash Preferred vs. Blue Cash Everyday: the biggest differences
|Blue Cash Preferred® Card from American Express||Blue Cash Everyday® Card from American Express|
|Annual fee||$95 (waived the first year if you apply by 12/10/2020) (See rates)||$0|
|Welcome bonus||$300 statement credit after you spend $3,000 in purchases in the first 6 months from account opening||$200 statement credit after you spend $1,000 in the first 3 months from account opening|
|Cash back at US supermarkets||6% back on the first $6,000 spent each calendar year, then 1% back||3% back on the first $6,000 spent each calendar year, then 1% back|
|Cash back on everything else|
6% back on select US streaming services
3% back at US gas stations
3% back on transit
1% back on all other purchases
2% back at US gas stations
2% back at select US department stores
1% back on all other purchases
|Introductory APR||0% intro APR on purchases for 12 months from account opening then a 13.99% to 23.99% variable APR (See rates)||0% intro APR for 15 moths from account opening, then a 13.99% to 23.99% variable APR (See Rates)|
The two cards also share minor benefits such as car rental loss and damage insurance, fraud protection, access to Amex's Global Assist Hotline and exclusive access to ticket presales and Amex cardmember-only events.
The welcome bonus on the Blue Cash Preferred® Card from American Express is slightly higher — with a $300 statement credit after you spend $3,000 in purchases in the first 6 months from account opening. The welcome offer on the Blue Cash Everyday® Card from American Express is a $200 statement credit after you spend $1,000 in the first 3 months from account opening.
However, when you subtract out the $95 annual fee that comes with the Blue Cash Preferred card, the welcome bonuses are nearly identical: $155 ($250 minus $95) on the Blue Cash Preferred compared to $150 with the Blue Cash Everyday.
Blue Cash Preferred® Card from American Express
13.99% to 23.99% variable APR
Good to Excellent
$200 statement credit after you spend $1,000 in the first 3 months from account opening
- Earn a $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
- 3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
- 2% Cash Back at U.S. gas stations and at select U.S. department stores.
- 1% Cash Back on other purchases.
- Low intro APR: 0% for 15 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%.
- Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee and no interest.
- Cash Back is received in the form of Reward Dollars that can be redeemed for statement credits.
- No annual fee.
- Terms Apply.
- Good bonus cash-back rate at US supermarkets
- No annual fee
- If you spend more than $6,000 at US supermarkets in a year, you should use another card to earn bonus rewards once you hit that cap
Which card is right for you?
When comparing the Blue Cash Preferred® Card from American Express and the Blue Cash Everyday cards, you'll want to look at your own specific spending patterns.
If you're already tracking your monthly spending, this will be as easy as reviewing your spreadsheet or tracking tool. If you don't have exact numbers, make your best estimates for your monthly spending in grocery, gas, department stores, transit, and streaming services. Since the Blue Cash Preferred has a $95 (waived the first year if you apply by 12/10/2020) annual fee, subtract that out and add the welcome bonus.
If you spend at least $500 per month on groceries and plan to use one of these two cards for your U.S. supermarket spending, the Blue Cash Preferred® Card from American Express is the way to go. The extra cash back you'll earn will more than make up for the annual fee, and the other bonus categories (streaming services, gas stations and transit) will provide even more cash back.
The Blue Cash Everyday® Card from American Express could be a better option if you won't spend the full $6,000 at U.S. supermarkets, or if you spend a lot at department stores. You'll need to spend at least $3,167 at U.S. supermarkets in order for the higher cash-back rate at U.S. supermarkets to offset the Blue Cash Preferred card's annual fee.
You'll also want to consider that there are many other cash-back cards out there, so it's possible that the best card for you may be a different card entirely.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.
Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.
For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.
For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.
Source: Read Full Article