Are you shopping around for a new credit card? Credit Karma is here to help! Some members of our team are sharing their opinions on the cards in their wallets. In this edition of "Credit Karma Weighs In," one of our Senior Software Engineers, Alfred, shares his thoughts on the Blue Cash Preferred® Card from American Express -- one of our marketing partners.
If you spend a significant amount on groceries each year, the Blue Cash Preferred® Card from American Express may be a great card for you. Offering an impressive six percent cash back in up to $6,000 per year (then 1 percent) for purchases made at grocery stores, the benefits you receive could exceed its $95 annual fee.
Rewards: The Blue Cash Preferred® Card from American Express can earn you six percent cash back at grocery stores on up to $6,000 per year (then 1 percent), three percent cash back at U.S. gas stations and select U.S. department stories, and one percent cash back on all other purchases. With this generous rewards system, I easily earn enough to make up for the annual fee each year.
Alfred's Rewards Rating:
Customer Service: I have nothing but good things to say about American Express's customer service. They are available via a variety of different channels, including phone and social media, and I was even able to resolve a request exclusively through their online chat help feature. One of their friendly representatives listened attentively and was able to resolve my issue quickly.
Alfred's Customer Service Rating:
Application Process: While American Express does accept applications via postal mail, I applied online. After filling out a pretty standard credit card application form, I was quickly approved and the new card was in my mailbox within a week.
Alfred's Application Process Rating:
Tips and Tricks
Consider signing up for Amex Offers. The Blue Cash Preferred® is eligible for Amex Offers, which is a program that allows you to register your card and earn more rewards with specific rotating merchants. In addition to offers that are available to all American Express cardholders, you may be eligible for targeted offers. For example, I was recently eligible for a $20 statement credit if I spent $100 or more at Macy's.
Take advantage of the card's other benefits and features. Earning cash back is easy, but don't forget about other exclusive features that come with the card, like Premium Car Rental Protection, which allows you to pay a flat rate for your entire rental period instead of purchasing additional car insurance from the rental company at a daily rate. Another benefit that comes with the card is extended warranty for certain purchases. I was able to take advantage of this recently and my claim was resolved quickly.
Evaluate your spending habits to decide if this is the right card for you. If you don't spend a lot at grocery stores each year, you may want to consider the Blue Cash Everyday® Card from American Express instead of the Blue Cash Preferred®. It's a similar card that gives you 3 percent cash back at grocery stores on up to $6,000 per year (then 1 percent), 2 percent cash back at select department stores and gas stations, and 1 percent cash back on all other purchases with no annual fee.
Because the Blue Cash Everyday® Card doesn't come with an annual fee, its rewards could outweigh the Blue Cash Preferred® until you spend $2,500 on groceries in a year. After that point, it may make more sense to go with the Blue Cash Preferred®, as you could earn more cash back even with the annual fee. In addition, the Blue Cash Preferred® could be a better choice if you spend a lot of money at gas stations and department stores.
The Blue Cash Preferred® Card from American Express can be a great choice if you spend big at grocery stores. Its various other perks and additional opportunities to earn more on gasoline and department store purchases can make the $95 annual fee worth the money.
If you're considering applying for a new credit card, it's generally a good idea to first check out consumer reviews to see what current cardholders really think. If you've got a credit card that you love, consider writing a review to help others out!
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