Is American Express Blue Cash Preferred Card Preferable for you?

The most recent card to catch my eye has been the American Express Blue Cash Preferred card, which is an improved version of the flagship Blue Cash card. It has much more generous rewards structure than other cards on the market, comparable and perhaps better than Discover More Card, the best reward card we have reviewed so far.

The pitch for the card definitely looks worth dying for in this market. Which says “6% cash back at supermarkets, 3% cash back at gas stations and department stores, and 1% back everywhere else“.

The moment you you think that the supermarket items become 6% cheaper for you, you will be seen a $75 annual fee applied.

By plain and simple mathematics, you need to spend $1,300 in grocery stores a year to compensate for the annual fee, provided you use a higher return gas card at the gas station.

this card is interesting and perhaps the best card for you if you happen to have a large family and if your super market bill generally is the highest monthly bill you pay.

I not aware of any other card, which gives more cash back on super market purchases.

6 Important Details About the Blue Cash Preferred Card

This card is one among dozens American Express offers to potential customers, so don’t feel bad if you haven’t yet discovered it. Here’s a closer look at the benefits and bugaboos:

1. Bonuses.  Blue Cash Preferred kicks back $150 in bonuses after the first $1,000 of spending. Refer a friend and you’ll receive another $75 bonus, and $75 more for every other friend who signs up for the Blue Cash Preferred card.

2. Tiered earnings. Like most other cash back cards, Blue Cash Preferred sports tiered earnings that favor shoppers and gas-guzzlers. Grocery spending outside of warehouse clubs kicks back 6% while gas purchases return 3%. Other spending kicks back 1%. Importantly, AmEx places no limits on what you can earn.

3. Annual fee. It’s not cheap to carry a AmEx Blue Cash Preferred card. There is an annual fee of $75.

4. APR on Purchases – 0% intro APR for 6 months. After that, your APR will be a variable rate, currently 17.24%, 20.24% or 22.24%

5. Other Perks – American Express promises other benefits on this card, such as extended warranty protection and guaranteed returns for unwanted merchandise. But most of Blue’s travel and shopping extras are about in line with what other cards offer.

6. Return protection - With American Express Blue Cash Preferred card, you have free return protection – if you try and return an item within 90 days, and the merchant is unwilling to take it back, American Express will refund the full purchase price, up to $300 per item, up to $1,000 annually per account.

Apart from the features above, the card comes with usual American Express exclusive offers, which other card issuers seldom extend to their card members.

No over limit fee, no cap on the amount of cash back, purchase protection plan and award winning customer service which rarely denies your service requests.

Is this the Right Card for You?

Apply for this card if you have no debt, a large family to feed, and an extended commute for work. Cash-back bonuses should add up quickly for those who spend hundreds monthly in these two categories. Over the course of a year, your $1,000 in gas spending could net you $54 in rebates.

Yet what makes this card stand out isn’t how much it pays in gas rebates. Plenty of branded gas cards pay more. The difference comes at the supermarket, where the average American family spends $3,624 annually on groceries. Using the Blue Cash Preferred card for all that would kick back $217 in rebates, more than enough to compensate for the annual fee.

Regardless, it’s important to remember that Amex wouldn’t offer this card if it didn’t produce profits. A 6% grocery rebate won’t mean much if you end up paying 17.24% or more in interest payments.

For those who do not want to pay the annual fee, has a slightly marked down version of Blue cash, called American Express Blue Cash Every day card which caps the cash back at 3% at super markets but, this card is fee free to you.

Based on the huge cash back at super market we will give this card a rating of “Apply. Even a 3% cash back at gas station looks lucrative.

One caution on credit card usage, the best way to handle any credit card is by paying off debt in full every month if you have to pay interest on the remaining balance otherwise.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express.

Costco American Express True Earnings Card Review

True Earnings Card from Costco and American Express is an American Express cash back card which allows unlimited  cash back on purchases made at Costco. This card allows you to earn up to 3% of what you’ve spent on certain purchases, and also comes with Costco membership as an added advantage.

If you are going to apply for the Costco American Express True Earning card, try to see your credit score first to have a general idea of what your credit limit is going to be, or will you be approved.

Credit Sesame shall give you a free assessment of your credit score, but in case you have already looked over the benefits of the Costco American Express True Earnings Card at their site.

This card is specially good as it comes with Costco membership, and it has no annual fee.

If you pay extra $50, you can become Costco executive member and start enjoying 2% cash back on Costco purchases. You can cover that membership fee as soon as you rich $2,500 in Costco shopping.

Costco American Express True Earnings Card 0% APR for Six Months

With that out of the way, the Costco American Express True Earning card has 0% APR for the first six months of use.

This introductory APR is better than Chase Sapphire, with an immediate variable APR of around 15%, but still, is less than that of the Citibank Master Platinum card with 0% APR for eighteen months. If you have credit card debt and want to transfer, you may want to consider Citibank Master Platinum first before Costco American Express True Earning  just for that extra year with the 0% APR.

Costco American Express True Earnings Card Cash Back

One of the biggest incentives of the Costco American Express True Earnings Card card is its cash back program. At the end of every year, Costco American Express True Earnings Card send you a check, or your cash back for a percentage of all your gasoline, dining and travel purchases for the year. The percentage rates are as follows:

  • 3% for the first USD 3,000 in annual gas purchases, and 1% after the USD 3,000 mark.
  • 2% of your expenses each time you dine in a restaurant.
  • 2% when traveling.
  • 1% when you use the card for anything else, and this includes purchases at Costco.
  • Costco Membership — no annual fee for Costco members.

Instead of points that you redeem inside a credit card’s shopping website, Costco American Express True Earnings Card offers you cash instead, giving you much more freedom with how you spend it.

Take note that with points, the conversion rate is often at 10%, or a point per dollar of purchase, as with the Chase Sapphire card. So that freedom with the cash back program of Costco American Express True Earnings Card comes at a price.

Costco American Express True Earnings Card Insurance Coverage

The Costco AMEX card also comes with automatic insurance coverage. The Car Rental Loss and Damage Insurance is particularly helpful for frequent travelers – major credit cards that specialize on traveling arrangements offer the same protection. Another non-cash advantage of the card is its USD 100,000 Travel Accident Insurance.

Aside from these coverages, the Costco American Express True Earnings Card can also convert your credit into foreign currency, if you are traveling out of the country.

The card also keeps you in touch with your family, friends and business through arrangements with Vodaphone – the rented international cellphone from Vodaphone immediately gives you at least USD 20 worth of calls back home to your loved ones or business associates.

Satisfied Customers

What is more important than the six month 0% APR or the Cash Back program of the Costco American Express True Earnings Card is that you can find very few complaints from customers – most are simply happy reviews about their experiences with the card. Even when technical support is needed regarding some issue or the other about the cards other functions, the responses have been generally good.

What this means is that after all is said and done, it is all about just keeping good relations with your customers, which Costco American Express True Earnings Card does pretty well.

The card is up front about its benefits and requirements, and is willing to lend assistance and support to any issues one might have in the use of the Costco American Express True Earnings Card, and for anyone carrying the card, that is all one asks.

Overall we will give this card an “Apply” rating if you are a Costco shopper. Avoid if you are not heavy Costco shopper.

Lastly, the best way to handle any credit card is by paying off debt in full every month if you have to pay interest on the remaining balance otherwise.

Disclaimer: This content is not provided or commissioned by AMEX or Costco. Opinions expressed here are author’s alone, not those of AMEX or Costco, and have not been reviewed, approved or otherwise endorsed by AMEX or Costco.
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