American Express Blue Cash Preferred: Cash Back Workhorse

The Amex Blue Cash Preferred is a cash back machine! On top of that, it comes with some useful credits like The Disney Bundle and a great intro bonus. In this blog post, we'll dive into the key features, benefits, and rewards structure of the American Express Blue Cash Preferred Credit Card.

How it Earns

• 6% on groceries

  • On up to $6,000 in spend per year

• 6% on streaming

• 3% on transit

• 3% at gas stations

• 1% on everything else

The cash back rewards on this card are very generous. 6% on groceries and 3% on gas is awesome, especially since those are some of the largest expense categories for most people. The 6% on streaming is also a nice bonus since many people have some form of streaming subscription nowadays.

What it Earns

• Reward Dollars

Reward Dollars are very straightforward. They are a cash back currency. Your account continues to build up Reward Dollars as you spend, and whenever you desire, you can cash out those Reward Dollars for a statement credit on your card.

How to Redeem

• Cash Back

Reward Dollars do not have a minimum redemption amount. That means if you only have $0.67 Reward Dollars available, you can go ahead and feel free to redeem those 67 cents for a statement credit. If you would rather stockpile your Reward Dollars until you have $100 available, you can go ahead and do that as well. Thanks to the simplicity of this being a strictly cash back card, it makes the redemption process easy compared to other travel focused cards I have reviewed.

Benefits

• $84 Disney Bundle Credit

  • $7 monthly credit after spending $12.99 or more each month

• $120 Equinox+ Credit

  • $10 monthly credit

• Auto Rental Collision Damage Waiver

  • Secondary coverage

The Disney Bundle credit is a nice benefit to have. The Disney Bundle with ads costs $12.99 per month and includes Disney+, Hulu, and ESPN+. If you would like the no-ad subscription it costs $19.99. Either way, if this is a subscription you already have or one you are looking to add, this card's $7 monthly credit can help offset the cost. I personally do not take advantage of the Equinox+ credit, but it is available for anyone interested in a on-demand mobile workout class plan. It costs $40 month so the $10 monthly credit is essentially getting you 25% off your subscription. I did do a trial of Equinox+ and I will say the workout library was massive and well put together. I am personally not an at-home workout kind of guy so it wasn't for me, but many people can take advantage of that credit.

Annual Fee

• $95

  • $0 effective annual fee

This card does come with an annual fee, but there is a price to pay if you want 6% back on certain categories in the credit card world. That being said, I think a lot of people will be able to take advantage of the $84 Disney Bundle credit bringing their effective annual fee down to $16. In addition, if you are interested in Equinox+, taking advantage of that $120 credit could mean that this card can effectively pay you $109 to have. For those reasons, this card has the potential to have an effective annual fee of $0. That being said, this card does have some more specific/niche credits than some other cards I have reviewed.

Pros/Cons

Pros

• 6% on groceries and streaming

• 3% on gas and transit

• Disney Bundle and Equinox Credits

• Downgradable to $0 annual fee card

Cons

• Other cards have >1% minimum return

• Foreign Transaction Fees

As I've mentioned, the 6% and 3% cash back categories are extremely valuable on this card, especially when groceries and gasoline are included. I also think The Disney Bundle is an easy to use credit that has mass appeal. Another huge upside is the ability to downgrade to a no-annual fee card if you no longer feel that this card is providing value to you. Finances and spending habits change, so I appreciate the flexibility to downgrade if need be.

How I Use It

• 6% on groceries and streaming

• 3% on gas

How I Use Reward Dollars

• Cash Back

Cash back rewards are so simple, I do not have much to add here. I do not have any rhyme or reason as to when I redeem my Reward Dollars. Every so often I will check how much I have available and proceed to redeem it for a statement credit.

Intro Bonus

• $250 Cash Back

  • After spending $3,000 in first 6 months

• 0% APR for 12 months

  • Purchases and balance transfers

• $0 annual fee for first year

  • Then $95

If you are looking to apply for this card, click here and it can help us both out. Make sure you check out Amex's website and your email if you are an existing Amex member to ensure you are getting the best possible intro bonus. Amex will sometimes send targeted elevated offers. Thanks!

Stay Tuned:

If you found this article valuable I would appreciate it if you shared it with a friend. If you have any questions, tips, or general info you want to share, leave a comment or use the chat and I will get back to you! If you are curious to learn more about my credit card setup, tips, and tricks, checkout my What's In My Wallet blog post. I am going to be doing additional reviews like this one in the future so you can better understand what cards are right for you. Sign up for my mailing list at the bottom of the page so you don't miss anything!