If you’re looking for a way to earn a generous amount of cash back in a short period of time, the Blue Cash Preferred cards from American Express should be on your radar.
If you’ve been considering a Blue Cash card from American Express, you’ll be happy to learn that the cards just got even more appealing – thanks to an elevated welcome bonus for the Blue Cash Preferred® Card from American Express.
Now, new Blue Cash Preferred cardholders can earn $250 cash back when they spend $1,000 in the first three months of card membership – an increase of $50 over the previous offer. The Blue Cash Everyday® Card from American Express, on the other hand, continues to offer $150 cash back when you spend $1,000 in the first three months.
Along with a higher welcome bonus, the Blue Cash Preferred card also updated its rewards rate and card art. See the card changes in the table below.
Blue Cash Preferred card changes
|Previous offer||Updated offer|
As you can see, the Preferred card added two bonus categories. Beginning May 9, 2019, cardholders will earn 6 percent cash back on select U.S. streaming subscriptions and 3 percent back on transit purchases. The department stores category, however, has been removed.
Note, if you applied for the Preferred card prior to May 9, you will continue to earn 3 percent cash back at select U.S. department stores until July 31.
Which card is better?
Along with a higher introductory bonus, the Blue Cash Preferred card offers a higher rewards rate than that of the Blue Cash Everyday card – which may make the Preferred card seem like the obvious choice.
But, since the Preferred card includes a $95 annual fee, you may be wondering: Is the Preferred card really the best value? Check out our side-by-side comparison below to see for yourself.
Comparing Blue Cash Preferred and Everyday cards
Blue Cash Everyday
Blue Cash Preferred
|Estimated value in first year ($15,900 spend)||$411||$554|
Even with its high annual fee, we believe that the Preferred card offers a better value over the Everyday card.
Based on an average consumer’s spending on gas, groceries and department stores, we estimate that you can earn $554 in cash back on $15,900 spend with the Blue Cash Preferred card in the first year. This takes into account the annual fee, the $250 welcome bonus and cash back earned in all spending categories.
With its smaller introductory bonus and half as much cash back on grocery purchases, the Blue Cash Everyday card’s average earnings add up to $411 in the first year – that’s $143 less than the Preferred card’s earnings.
Once you’ve completed the first year of card membership, the difference in value between the two cards is closer, but the Preferred card still wins. Without the benefit of the welcome bonuses, the Preferred card offers $406 in value on average, while the Everyday card only offers $310 – a difference of $96.
For the majority of cardholders who are committed to using the card, the $95 annual fee for the Blue Cash Preferred card is worth it – both in the short and long term.