The Blue Cash Preferred® Card from American Express provides unmatched rewards at U.S. supermarkets. It's not just a one-trick pony either -- its other rewards for select U.S. streaming services, U.S. gas stations and transit are competitive with, and in some cases even higher than, the best rewards cards available.
At a time when food and gas prices are soaring, having a credit card that provides a great return on essentials can be even more valuable. You'll need good to excellent credit to qualify, however, and it does charge a $95 annual fee ($0 intro annual fee for the first year). But if you can use the Blue Cash Preferred for all of your grocery and gas spending, your rewards should quickly eclipse the cost.
Cash-back rewards program
You'll earn 6% cash back on groceries at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). So at the maximum spending threshold for this category -- the equivalent to approximately $115 in weekly grocery spending -- you could earn $360 in cash back over a year, easily covering the cost of the card.
The 6% cash-back rate also applies to select U.S. streaming subscriptions, including those below (this is not an exhaustive list).
| Apple Music | Fubo TV | Kindle Unlimited | Pandora | SiriusXM Streaming and Satellite |
| Apple TV+ | HBO Max | MLB.TV | Paramount+ | Spotify |
| Audible | HBO | NBA League Pass | Peacock | YouTube Music Premium |
| Disney+ | Hulu | Netflix | Prime Video | YouTube Premium |
| ESPN+ | iHeartRadio | NHL.TV | Showtime | YouTube TV |
You can earn 3% cash back on gas at U.S. gas stations and on transit. Superstores, supermarkets and warehouse clubs that sell gasoline do not count as gas stations in this context. Transit purchases include trains, taxicabs, ride-sharing services, ferries, tolls, parking, buses and subways. Airfare, car rental and cruise purchases are not covered by this category.
For other purchases that don't fall into one of these categories, you'll earn 1% cash back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Redemption cannot be applied to your minimum payment due.
Is the Blue Cash Preferred Card from American Express right for you?
Gas and groceries
The Blue Cash Preferred excels when combined with typical family budgets largely dedicated to grocery bills and gas stations. It can be especially lucrative for families with several mouths to feed and activities to shuttle to and from. But anyone who has added to their streaming subscription lineup or leaned into cooking will likely benefit.
Will the rewards outweigh the annual fee?
Before you apply, do the math to ensure the potential rewards on your spending outweigh the $95 annual fee after your first year with the card. You'll need to spend at least $1,600 on groceries annually to earn $96, so it likely won't be too difficult to cover the fee if you're also using it for gas, streaming and transit.Â
On the other hand, if you spend well over the $6,000 cap at U.S. supermarkets each year, you may get better value from a card with a lower rewards rate and no spending maximum. Look over past statements and receipts to estimate your average spending in each category, so you can find how much you'd earn.
Bonus rewards categories
Make sure you can take advantage of the higher rewards rates for Amex’s bonus categories. Earning high rewards on groceries is compelling, but Amex does not include superstores, convenience stores, or warehouse clubs, for example, in its U.S. supermarket category. So, if you buy the majority of your groceries at Costco or Target, this card may not be your best choice.
Welcome offer
You can earn $250 after spending $3,000 in purchases on your Blue Cash Preferred within the first six months of account opening. You'll receive the $250 as a statement credit, but it won't post to your account for eight to 12 weeks after you meet the spending threshold.Â
Introductory APR
The card includes a 0% introductory APR on purchases and balance transfers for 12 months from the date of account opening (then 20.24% to 29.24% variable). During this time, you must make minimum payments and pay your balance in full at the conclusion of 12 months to avoid interest charges.
In a similar vein, you’ll also get access to Plan It®, Amex’s Buy Now, Pay Later offering. This program allows cardholders to split up large payments into monthly installments paid over time, usually with a fixed fee. You’ll get the 12 introductory months free of interest, after which you’ll be subject to a fixed monthly plan fee of up to 1.33%. (Your exact plan fee depends on the plan duration, APR that would otherwise apply to the purchase and other factors. See rates and fees.) And while you could save money with Plan It, this fee could also add up to roughly the same amount as the APR would cost you over the course of a year.
To use this card most strategically for recurring large purchases, you might use the introductory APR for the 12 months, and then open a Buy Now, Pay Later with Plan It® plan for large purchases made in month 11 of card ownership. This would allow you to enjoy no interest on select purchases for as long as possible with this card. But as always, you should avoid making a purchase you won’t be able to comfortably pay in full before fees or interest accrue.
Other perks
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Though the Blue Cash Preferred® Card from American Express card charges 2.7% for foreign transaction fees (see rates and fees), it can still be useful for some domestic travel -- for instance, you'll get car rental loss and damage insurance*. You'll also get return protection*, which lets you return eligible purchases to American Express within 90 days of purchase if the seller won't accept them.
FAQs
Cash-back credit cards offer cardholders rewards on their spending in the form of statement credits or cash. A statement credit is a reduction in the amount due to the credit card company on your monthly bill. Note that rewards are not always available the month you earn them — they are usually applied to your balance by credit card issuers after one or two billing cycles.
The redemption process for cash-back credit cards is either automatic or very simple. Some cards automatically apply cash rewards to your statement balance each month. Others require you to log in and redeem available rewards points for statement credits. Most points don’t expire, but you will lose them if you close the account before redeeming them.
Deciding which grocery credit card is right for you will depend largely on your shopping habits. Keep in mind that most major credit card companies do not consider wholesale clubs and big-box stores like Walmart and Target to be grocery stores, so your purchases there might not qualify for the same rewards. Before applying for a grocery credit card, you’ll want to closely read the fine print to make sure that your needs will be met depending on where you shop.
One last thing to keep in mind: Don’t fall for credit cards just because of a welcome bonus offer. While the immediate cash back can be appealing, it is typically a one-time or short-lived reward. Groceries are purchases that you need to make every month. You’re better off focusing on maximizing these rewards over time rather than going for the up-front bonus.
A gas credit card is one that rewards cardholders for spending at gas stations. Most gas credit cards aren’t offered by gas stations themselves. Instead, other credit card issuers offer bonus rewards on gas purchases, among others. The best gas credit cards offer up to 5% back on gas purchases, but most offer 2% to 3%.
Our approach
We review the cards that are in the highest demand and offer the best benefits. We scour the fine print so there aren't any surprises when you open an account. We find the key factors that make a card stand out and compare them with other top cards. That way, readers can opt for a different card with similar features if our pick isn't right for them. Our reviews are regularly checked and updated to incorporate new recommendations, as well as to reflect changes in offers and the market.
**All information about American Express cards have been collected independently by CNET. American Express cards are no longer available through CNET.
*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
