Why the Amex Blue Cash Preferred comes out on top during the pandemic

Sep 11, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Editor’s note: This story has been updated with the latest information. For more on limited-time perks due to the pandemic, read our guide on temporary bonuses and benefits

Whether travel is on your radar or not, now may be a great time to save for your next getaway — however close to home that may be.

One way to do that is to collect points and miles to prepare for the journey ahead. But there’s also the simplicity and appeal of cash back, too. If you prefer to be paid back in cents instead of points — or find yourself in a financial crunch similar to millions of Americans — a cash-back card could be the better choice.

And there is one cash back card that has captured my attention more than any other during the pandemic: the Blue Cash Preferred® Card from American Express. While it carries a $95 annual fee (see rates and fees), this is more than offset by its generous (and timely) category bonuses.

Want the latest card benefits and travel news sent to your inbox? Sign up for our TPG daily newsletter.

If cash back is more your style, here are reasons why it should be your go-to credit card.

In This Post

Bonus categories perfect for being close to home

In my view, no card has a better permanent combination of cash back category bonuses — for staying at or near home. The Blue Cash Preferred has bonus earnings on U.S. supermarkets, select U.S. streaming services, U.S. gas stations and transit. In every single category, it’s made our list of best credit cards.

Let’s break it down further.

U.S. supermarkets

The Blue Cash Preferred earns 6% cash back at U.S. supermarkets (on up to $6,000 of spending each calendar year, then 1%). While it’s a bit frustrating to have the $6,000 cap, you would still get $360 in cash back if you fully maximized this bonus category.

While it’s leveled off in recent months, grocery spending has seen a tremendous surge during the coronavirus pandemic. It’s not just an overall increase in grocery spending, but also an increase in the percentage as compared to other consumer categories, like retail and dining.

Related: Best credit cards for groceries

Streaming

Next up, you’ll also get 6% cash back on select U.S. streaming subscriptions. A recent study from Deloitte highlighted just how prevalent streaming and subscriptions have become. Prior to the start of the pandemic, the average U.S. consumer had 12 paid entertainment subscriptions. That number jumps to 17 if we’re talking specifically about millennials.

(Photo by Phil Barker/Future Publishing via Getty Images)
(Photo by Phil Barker/Future Publishing via Getty Images)

For months, streaming was a primary source of entertainment. Here is the latest list of qualifying stream services from Amex:

Amazon Music Unlimited, Apple Music, Apple TV+, AT&T Now, Audible, CBS All Access, Disney+, ESPN+, Fubo TV, HBO Now, HBO Max, Hulu, iHeartRadio, Kindle Unlimited, Luminary, MLB.TV, NBA League Pass, Netflix, NHL.TV, Pandora, Prime Video, Showtime, Sling TV, SiriusXM Streaming and Satellite, Spotify, Stitcher, YouTube Music Premium, YouTube Premium and YouTube TV

Related: Best credit cards for streaming

Gas

With this card, you’ll receive 3% back at U.S. gas stations for running around town. And if you’re ready for a summer or fall road trip, you’ll be all set too. As you might have guessed, this card is on our list of best credit cards for gas.

Transit

While fewer U.S. residents are commuting, the transit category can still be worthwhile but I’ll admit — it’s probably the least valuable among the four bonus categories right now. The Blue Cash Preferred earns 3% cash back on transit, including parking, tolls, ride-sharing, subway, etc.

Photo by B&M Noskowski / Getty Images)
(Photo by B&M Noskowski / Getty Images)

If public transit is still a no-go, your bike share and other mobility-related expenses might also count towards earning 3% back. There’s a reason why this card made it onto our permanent list of best cards for transit.

No confusing temporary categories

If it seems like there is a new card update or bonus category change or every week or two during the pandemic, you’re not far off. Thankfully, we have a guide to card benefit changes that breaks it all down. However, you might just prefer something simple (instead of keeping track of limited-time perks and when they kick in or expire).

The Blue Cash Preferred is ideal for that. It has bonus categories that are relevant to our current environment and has the ease of cash-back earning. To redeem, you can receive a statement credit (my preferred choice), get gift cards or shop directly with your rewards.

Easy-to-earn welcome offer

New Blue Cash Preferred applicants receive a $250 statement credit after spending $1,000 within the first three months. While it’s not the most lucrative offer out there, cash-back cards rarely have huge welcome offers.

On the positive side, $1,000 within three months is a relatively low spending requirement and attainable just by shopping for everyday essentials.

Related: Review of the Amex Blue Cash Preferred card

Bottom line

Creating a points, miles or cash back strategy is a prudent choice while stuck closer to home.

If cash back is more up your alley — and these bonus categories align with your pandemic spending — then you can’t go wrong with the Blue Cash Preferred.

Featured photo by The Points Guy

For rates and fees of the Blue Cash Preferred, please click here.

Blue Cash Preferred® Card from American Express

WELCOME OFFER: $250 Cash Back Terms Apply.

TPG'S BONUS VALUATION: $250

CARD HIGHLIGHTS: New! Earn 6% cash back on select U.S. streaming services and 3% cash back on transit. Plus earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%) and 3% Cash Back at U.S. gas stations

Apply Now
More Things to Know
  • Earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 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.
  • Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, currently 13.99% to 23.99%.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee and no interest.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • $95 Annual Fee
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
0% on purchases for 12 months
Regular APR
13.99%-23.99% Variable
Annual Fee
$95
Balance Transfer Fee
N/A
Recommended Credit
Excellent, Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.