Blue Cash Preferred® Card from American Express

Card at a glance

  • Annual fee: $0 for the first year, then $95 annually. Intuit Credit Karma+2NerdWallet+2
  • Rewards:
    • 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. NerdWallet+2Intuit Credit Karma+2
    • 6% cash back on select U.S. streaming subscriptions. NerdWallet+1
    • 3% cash back at U.S. gas stations and on transit (rideshares, parking, tolls, trains, buses). NerdWallet+1
    • 1% cash back on other purchases. NerdWallet
  • Welcome offer example: $250 statement credit after $3,000 in purchases within the first 6 months. NerdWallet+1
  • Intro APR: 0% for 12 months on purchases and balance transfers, then variable APR of approximately 19.74%-28.74%. NerdWallet+1
  • Foreign transaction fee: 2.7%. American Express+1
  • Recommended creditworthiness: Good to Excellent. Intuit Credit Karma

What makes this card stand out

Strong rewards in key categories

If you spend heavily at U.S. supermarkets and pay for streaming subscriptions, the 6% cash back rate is very high compared to most other cards. Combine that with the 3% cash back on gas and transit and this card can deliver great value for the right user.

Welcome bonus adds first-year value

The $250 statement credit after $3,000 in spend within six months is a meaningful boost and helps offset the annual fee in year one.

Intro APR provides flexibility

The 0% APR for 12 months allows time to make a large purchase or transfer a balance without accruing interest.

Redemption is simple

Cash back comes in the form of Reward Dollars and can be redeemed as statement credit or used at Amazon.com checkout. No complicated points or miles conversion. NerdWallet

What to watch out for / potential drawbacks

Annual fee after the first year

After the introductory year, the card has a $95 annual fee. If you cannot earn significantly in the bonus categories, the fee may outweigh the value.

Cap on the supermarket bonus category

The 6% rate applies only up to $6,000 in U.S. supermarket purchases each year. After that it drops to 1%. Many households may exceed that cap. NerdWallet+1

Foreign transaction fee

If you spend significantly abroad or with foreign merchants online, the 2.7% fee adds cost and reduces overall value.

Requires category specific spending

The highest rates apply only if you use the card for the supermarket, streaming, gas and transit categories. If your spending is mostly elsewhere, you may get only the 1% base back rate.

Real-World Value Example

Assume you spend per year:

  • $6,000 at U.S. supermarkets → 6% = $360 in cash back.
  • $300 on streaming subscriptions → 6% = $18.
  • $2,000 on transit and gas → 3% = $60.
    Total cash back = $438.
    Subtract the $95 annual fee (in year two onward) → net ~$343 value.
    Add the welcome bonus of $250 for the first year → first year value ~$593.

If your supermarket spending is lower, say $3,000/year, then:

  • $3,000 × 6% = $180
  • $300 streaming × 6% = $18
  • $1,000 transit/gas × 3% = $30
    Total = $228. After fee net ~ $133. With bonus ~ $383 first year.

If your spending is mostly outside these categories, say $5,000 general purchases at 1% = $50 back. After fee negative unless bonus covers it.

Best For & Who Might Skip

Best for:

  • Households with high supermarket spending (close to or exceeding $6,000/year).
  • Cardholders who pay for multiple streaming subscriptions and use gas/transit regularly.
  • Users who prefer cash back rather than travel rewards.
  • Consumers comfortable tracking categories and maximizing bonus rates.

Might skip if:

  • You travel abroad frequently or spend abroad → foreign transaction fee is a drawback.
  • Your supermarket spending is low (<$300/month) and you won’t hit bonus categories.
  • You prefer a simple flat rate on all purchases.
  • You want travel perks, airline miles or points instead of cash back.

Application Tips

  • Confirm your credit profile is in the “good to excellent” range.
  • Review your spending habits: if you spend heavily in the key categories, this card makes sense.
  • Use the welcome bonus efficiently: plan to spend $3,000 in the first six months without creating unnecessary purchases.
  • After the first year, evaluate whether you will continue to maximize the bonus categories to justify the $95 fee.
  • For foreign or travel purchases, consider pairing this card with a no-foreign-transaction-fee card.

Recent Changes & Offer Notes

  • American Express updated the card to include show-streaming subscription rewards at 6%. NerdWallet+1
  • The rates and fee structure reflect the updated table as of October 8, 2025. American Express+1

Frequently Asked Questions

Q: Does the 6% cash back apply everywhere I buy groceries?
A: No. It applies only at eligible U.S. supermarkets. It does not include warehouse clubs or superstores like Walmart or Target. NerdWallet

Q: Can I redeem my Reward Dollars for cash deposit or check?
A: No. Reward Dollars are redeemed as statement credit or at Amazon.com checkout. NerdWallet

Q: Is the introductory 0% APR always available?
A: It varies by promotion and credit approval. Always review current terms.

Q: What happens if I spend more than $6,000 at U.S. supermarkets?
A: After $6,000 in eligible purchases per year, the rate drops to 1% for those purchases.

Final Verdict

The Blue Cash Preferred® Card from American Express is an excellent option for consumers who spend heavily in the bonus categories and want strong cash-back rewards. With 6% back at U.S. supermarkets and streaming, and 3% back on gas and transit, the card can easily justify its $95 annual fee if your spending aligns. For the first year, the welcome bonus further enhances value. However, if your spending is mostly outside those categories or you travel internationally often, you might find better value with a simpler no-annual-fee card or a travel-rewards oriented card.
Use the card only if you will maximize the bonus categories and you are confident you will benefit from the higher rates.