How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Blue Cash Preferred® Card from American Express is well worth it if you’re looking for a card to carry on all your everyday excursions, like a trip to the supermarket or filling up your gas tank. It offers one the highest cash back* rates around on U.S. supermarket purchases. Plus, you’ll get elevated earnings in a broad array of other popular categories, like U.S. gas stations, select streaming subscriptions and transit. Even when you factor in the annual fee, it’s one of the most rewarding cash back* cards you can get.
You can easily offset the annual fee each year by spending just $1,584 (~$130 monthly) at U.S. supermarkets. However, if you spend less than $60 per week on groceries, you may find better value in the $0-annual-fee Blue Cash Everyday® Card from American Express (see rates & fees). And, if you want a card strictly to use for groceries, you may be better off with the Citi Custom Cash® Card.
| Credit Cards | Our Ratings | Annual Fee | Rewards Rate | Welcome Offer | |
|---|---|---|---|---|---|
Blue Cash Preferred® Card from American Express
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$0 intro annual fee for the first year, then $95. | 1% - 6% cash back
| $250 statement credit
Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
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Blue Cash Everyday® Card from American Express
|
$0 | 1% - 3% cash back
| $200 statement credit
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
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Citi Custom Cash® Card*
|
$0 | 1% - 5% cash back
| $200 cash back
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
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Capital One Savor Cash Rewards Credit Card
|
$0 | 1% - 8% cash back
| $200 Cash Back
$200 Cash Back after you spend $500 on purchases within 3 months from account opening
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A top card for everyday spending
With the Blue Cash Preferred® Card from American Express, you can earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply.
It provides one of the highest rewards rates at U.S. supermarkets of any card that we know of. While around 61% of Americans are worried about rising grocery costs due to inflation, this card can help you save money on essential expenses.
→ See all of the top grocery credit cards.
Additionally, you can get generous cash back* on select U.S. streaming subscriptions with no earning cap. Since 86% of Americans subscribe to at least one streaming service, chances are that streaming is a significant expense for you. The Blue Cash Preferred® Card from American Express is likely to reward you richly in this category, since it covers more than 30 popular streaming services, including:
The Blue Cash Preferred® Card from American Express is also an excellent choice for those who frequently fill up their gas tank at U.S. gas stations or rely on public transit. Thanks to its competitive rewards rate, this card ranks among the top gas credit cards. Eligible transit expenses include:
→ See all of the top gas credit cards.
Higher-than-average welcome offer for a cash back* card
Yet another reason to give this card a try: New cardmembers earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months. This is a longer-than-usual time limit — most cards give you just three months to earn a welcome offer. Additionally, this offer exceeds the average welcome offer for cash back credit cards, which is around $161.
Intro APR on purchases and balance transfers
The Blue Cash Preferred® Card from American Express offers a solid 0% intro APR on both purchases and balance transfers. There’s an intro APR of 0% on purchases for 12 months and 0% on balance transfers for 12 months. Then, a 20.24%-29.24% Variable APR applies.
With its generous welcome offer factored in, this card can be a great choice for financing a large purchase. However, the card’s intro APR period is relatively short compared to others, as some cards offer 0% intro APRs for up to 21 months.
Disney Bundle credit
Another reason that this card is a great choice for cutting your streaming service costs is its Disney Bundle credit. You’ll get a $7 monthly statement credit after you use your enrolled card to spend $9.99 or more each month on a subscription to the Disney Bundle (subject to auto-renewal). This credit is valid with DisneyPlus.com, Hulu.com or Plus.espn.com in the United States. You could get up to $84 in savings each year with this perk.
Car rental loss and damage insurance1
The Blue Cash Preferred® Card from American Express features travel insurance that you’ll often only see with travel credit cards with higher annual fees. This includes car rental insurance1, which can cover you for damage to or theft of a rental vehicle.
Additionally, the card comes with purchase protection2, return protection3, extended warranty4 and Global Assist® Hotline5.
“I love the Blue Cash Preferred® Card from American Express. It’s the only card I have with an annual fee, and I think it’s the best card for everyday expenses. I get a very high cash back* rate at U.S. supermarkets and on streaming services, along with a solid rate on public transit and ride share apps. On top of that, I get a Hulu/Disney+ credit that nearly covers the cost of the annual fee.”
– Sarah Fisher, deputy editor at LendingTree
Annual fee
This card charges a $0 intro annual fee for the first year, then $95. If you spend $1,584 on purchases eligible for 6% cash back*, you’ll earn enough to recoup the amount of the annual fee. However, if you don’t spend enough to make it worth it, you may prefer the Blue Cash Everyday® Card from American Express, which offers similar categories for a $0 annual fee.
The Blue Cash Preferred® Card from American Express is often overlooked by users due to its annual fee, particularly with the abundance of $0-annual-fee cash back cards available. However, many users point out various ways to easily offset the fee, making it a compelling choice for a cash back* card.
Limit on higher cash back* rate
With the $6,000 annual cap on U.S. supermarket purchases, the Blue Cash Preferred® Card from American Express maxes out after $500 in grocery spending on average per month (or roughly $116 per week). After that, the earnings for that category drop to 1%.
If your monthly grocery spending significantly exceeds this limit, you might prefer a card like the Capital One Savor Cash Rewards Credit Card, which has no cap on the rewards you can earn.
Foreign transaction fee
When traveling abroad, it’s better to leave this card at home, because there’s a foreign transaction fee of 2.7% of each transaction after conversion to US dollars. Additionally, many of the card’s earning categories only apply to U.S. purchases, preventing you from earning accelerated rewards abroad.
If you’re looking for a card to take with you on your next trip, try the Capital One Savor Cash Rewards Credit Card, which has no foreign transaction fees (see rates & fees).
Limited redemption options
With the Blue Cash Preferred® Card from American Express, you can only redeem your cash back as a statement credit or at Amazon.com checkout. Some cash back cards offer more flexible redemption options.
For example, the Wells Fargo Active Cash® Card lets you use cash rewards to offset recent eligible purchases, withdraw from ATMs in $20 increments, gift cards and qualifying Wells Fargo checking accounts and mortgages — in addition to statement credits.
| Blue Cash Preferred® Card from American Express (see rates & fees) | Blue Cash Everyday® Card from American Express (see rates & fees) | |
|---|---|---|
| Annual fee | $0 intro annual fee for the first year, then $95. | $0 |
| Rewards rate | Earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more), 1% Cash Back on other purchases. Terms apply. | Earn 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%. 1% cash back on other purchases. Terms apply. |
| Intro purchase APR | 0% on purchases for 12 months | 0% on purchases for 15 months |
| Intro balance transfer APR | 0% on balance transfers for 12 months | 0% on balance transfers for 15 months |
| Regular APR for purchases and balance transfers | 20.24%-29.24% Variable | 20.24%-29.24% Variable |
| Other benefits |
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The Blue Cash Everyday® Card from American Express is basically a toned-down version of the Blue Cash Preferred® Card from American Express, ideal for those who prefer a $0 annual fee. It offers less at U.S. supermarkets and lacks the U.S. streaming subscriptions and transit categories found with the Blue Cash Preferred® Card from American Express.
Before you spring for the Blue Cash Everyday® Card from American Express, you should do the math to decide if the Blue Cash Preferred® Card from American Express is the better value for you. If you spend more than $3,166 per year (around $60 per week) on U.S. supermarket purchases, the Blue Cash Preferred® Card from American Express will earn more in this category than the Blue Cash Everyday® Card from American Express with the annual fee factored in. If you also happen to spend heavily on streaming purchases, the Blue Cash Preferred® Card from American Express is the clear winner.
On the other hand, if you’re hoping to transfer a balance or finance a large purchase with your card, the Blue Cash Everyday® Card from American Express has the edge because of its longer intro APR on both purchases and balance transfers.
If you want a card just to use on groceries, the Citi Custom Cash® Card is a better choice than the Blue Cash Preferred® Card from American Express. You can earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. The 5% category does include grocery store purchases.
While the Citi Custom Cash® Card appears to offer a lower rewards rate than the Blue Cash Preferred® Card from American Express, it stands to earn more cash back in a year if you only use your card for groceries. After you factor in the annual fee for the Blue Cash Preferred® Card from American Express, you’ll earn $265 at U.S. supermarkets before you hit the $6,000 cap. Meanwhile, if you spend $500 per month on groceries with the Citi Custom Cash® Card, you’ll earn $300 in cash back per year.
On the downside, it offers a low rewards rate on everything outside your top spending category. If you want to use your card for multiple types of purchases in a month, the Blue Cash Preferred® Card from American Express is the better choice.
The Capital One Savor Cash Rewards Credit Card is the better choice for foodies who like to eat out and travel. In fact, it’s one of the best cash back cards around because of its $0 annual fee and wide range of popular earning categories (see rates & fees). It offers a few categories that the Blue Cash Preferred® Card from American Express doesn’t, including dining, entertainment and travel. Plus — though it has a lower earning rate for groceries — there’s no cap on your rewards.
It also has better redemption options. Cash back can be redeemed for statement credits, checks, credits toward previous purchases, gift cards and PayPal.
The Blue Cash Preferred® Card from American Express is right for you if your spending aligns with its high-earning categories, particularly U.S. supermarkets, select U.S. streaming subscriptions, transit and U.S. gas stations. Families or individuals who spend heavily on groceries will see the most value. If you frequently use transit services, pay for streaming subscriptions or drive often, the additional cash back* in these areas are also a big plus.
However, if you prefer a $0-annual-fee card or your spending is spread across a variety of non-bonus categories, other options like the Blue Cash Everyday® Card from American Express, Citi Custom Cash® Card or Capital One Savor Cash Rewards Credit Card may be a better fit (see rates & fees).
The Blue Cash Preferred® Card from American Express isn’t made of metal. However, there are several other metal credit cards available. Most metal credit cards are premium travel cards with higher annual fees, but there are a few available with more reasonable fees like the Chase Sapphire Preferred® Card. (see rates & fees)
The Blue Cash Preferred® Card from American Express is geared to those with good / excellent credit. If you have a lower credit score, you might consider working towards building your credit profile before applying.
U.S. streaming services include:
According to American Express, a U.S. supermarket offers a wide variety of food and household products like meat, fresh produce, dairy, canned and packaged goods, household cleaners, pharmacy products and pet supplies. Examples include:
Superstores like Target and Walmart, convenience stores, warehouse clubs and meal-kit delivery services are not considered supermarkets.
We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor Statistics data.
To see rates & fees for American Express cards mentioned on this page, visit the links provided below:
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the Citi Custom Cash® Card and Wells Fargo Active Cash® Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
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