Credit cards can be confusing, but they can also be your best friend if you use them wisely. Among the many cards available, the American Express Blue Cash Preferred Card is one that promises excellent cash back rewards. But does it live up to the hype? Here’s my take, based on my experience with the card over the last two years.
My Real-Life Results: Numbers Speak for Themselves
In the last two years, I’ve accrued an impressive $721 in cashback rewards using my American Express Blue Cash Preferred Card. What can you do with this amount? Well, anything from purchasing Christmas gifts to even booking a cruise. Our family of four primarily uses the card for groceries, an expense that has been escalating lately (I’m sure many of you can relate).
The primary appeal of this card is the cashback offers. It provides a staggering 6% cashback on groceries and streaming services. And let’s face it, with the way grocery prices are going, any discount is welcome, and who doesn’t use streaming services nowadays?
The Catch: It’s Not All Roses
Of course, there are some stipulations to consider. The 6% cashback on groceries is capped at $6,000 per year, resetting on January 1st. Once you cross this limit, you’ll get a 1% cashback for every dollar over $6,000. The supermarkets eligible for this offer are not your big box stores like Walmart and Target; you have to shop at U.S. supermarkets as defined by American Express.
Streaming services, however, have no cashback limit. So, if you’re someone who subscribes to multiple streaming platforms like Netflix, Hulu, Disney+, and more, you’re in luck!
💳 Apply for an American Express Card with this link. We can both get rewarded if you’re approved ► http://averagetoamazing.com/go/amex
More Than Just Groceries: Gas, Transit, and More
In addition to groceries and streaming services, this card also offers 3% cash back on gas and transit, which includes gas stations, Uber, parking, and even tolls. And then there’s a 1% cashback on all other expenses.
Bonus Offers: It Keeps Getting Better
What sets the American Express Blue Cash Preferred Card apart from others are its periodic bonus offers. These can range from getting $5 back when you spend $15 or more at McDonald’s to similar discounts at various other retailers. These bonus offers are in addition to the standard cashback percentages, providing an added incentive to use this card for your purchases.
Smart Spending Habits: A Word of Caution
It’s essential to use the card wisely. We only charge our card for expenses we’ve budgeted for. That means no random purchases; we stick to necessities like groceries and gas. This strategy also enables us to pay off the balance in full each month, avoiding interest charges and maximizing our rewards.
The Annual Fee Dilemma
One significant downside is the card’s $95 annual fee. However, if you calculate the cashback, it can easily cover the fee and even leave you with a substantial amount. For example, if you spend just $32 a week on groceries, you’ll earn enough cash back to offset the annual fee. And let’s be honest, most families spend much more than $32 a week on groceries.
Is the American Express Blue Cash Preferred Card for You? Use the Free Tool to Decide
To help you make an informed decision, I’ve created a Google Sheet that allows you to plug in your spending habits to calculate your potential annual cashback. All you need is a Google account to make a copy and start entering your data.
You can even download the sheet and use it as an Excel template if you prefer that format. This tool is a straightforward way to assess whether the card will be beneficial for your specific situation.
Final Thoughts
The American Express Blue Cash Preferred Card is a potent tool for earning cashback, especially if your spending aligns well with its categories. With some mindful spending and strategic use of bonus offers, you can easily negate the annual fee and earn a tidy sum back at the end of the year. However, whether or not it’s the right card for you entirely depends on your spending habits and lifestyle.
So go ahead, do the math, weigh the pros and cons, and see if this card can be your key to unlocking some extra financial freedom. And if you decide it’s right for you, make sure to check out the sign-up bonuses, as they can make an excellent deal even better.
💳 Apply for an American Express Card with this link. We can both get rewarded if you’re approved ► http://averagetoamazing.com/go/amex