Blue Cash Everyday vs Blue Cash Preferred: Which Is Best?
Are you looking to maximize your rewards on everyday spending? Choosing the right credit card can feel overwhelming, but we’re here to help! This comparison dives deep into two popular options: the Blue Cash Everyday® Card and the Blue Cash Preferred® Card.
Both cards are issued by American Express and designed with cash back rewards in mind, but they cater to slightly different spending habits. Understanding the nuances of each card is key to making the best choice for your wallet. Let’s see which card reigns supreme.
We’ll break down everything from rewards rates and annual fees to other perks and benefits. By the end of this comparison, you’ll have a clear understanding of whether the Blue Cash Everyday card or the Blue Cash Preferred card is the perfect fit for your lifestyle and spending patterns.
Specs at a Glance
| Feature | Blue Cash Everyday | Blue Cash Preferred |
|---|---|---|
| Rewards on U.S. Supermarkets | 3% Cash Back | 6% Cash Back |
| Rewards on U.S. Gas Stations | 2% Cash Back | 3% Cash Back |
| Rewards on U.S. Department Stores | 2% Cash Back | 3% Cash Back |
| Rewards on Other Purchases | 1% Cash Back | 1% Cash Back |
| Intro APR on Purchases | 0% for 15 months | 0% for 12 months |
| Intro APR on Balance Transfers | 0% for 15 months | 0% for 12 months |
| Annual Fee | $0 | $95 |
| Cash Back Redemption Options | Statement credit, check, direct deposit | Statement credit, check, direct deposit |
| Purchase Protection | Yes | Yes |
| Extended Warranty | Yes | Yes |
| Travel Accident Insurance | Yes | Yes |
| Car Rental Loss and Damage Insurance | Yes | Yes |
Feature-by-Feature Breakdown
Annual Fee
- Blue Cash Everyday: No annual fee. This makes it a great option for those who want to avoid paying a yearly fee for their credit card. However, it may have fewer perks than cards with an annual fee.
- Blue Cash Preferred: $0 annual fee. This means you won’t have to pay a yearly fee to have this card.
- Winner: blue cash everyday
Cash Back on Groceries
- Blue Cash Everyday: Earns 3% cash back on groceries (at U.S. supermarkets, up to $6,000 per year in purchases, then 1%). This is a solid rate for groceries.
- Blue Cash Preferred: Earns 6% cash back on groceries (at U.S. supermarkets, up to $6,000 per year in purchases, then 1%). This is a higher rate for groceries than the everyday card.
- Winner: blue cash preferred
Cash Back on Gas Stations
- Blue Cash Everyday: Earns 2% cash back at U.S. gas stations and select U.S. department stores (up to $6,000 per year in purchases, then 1%). This provides a good return on gas purchases.
- Blue Cash Preferred: Earns 3% cash back at U.S. gas stations and select U.S. department stores (up to $6,000 per year in purchases, then 1%). This provides a good return on gas purchases.
- Winner: blue cash preferred
Cash Back on Other Purchases
- Blue Cash Everyday: Earns 1% cash back on all other purchases. This is a standard rate for general spending.
- Blue Cash Preferred: Earns 1% cash back on all other purchases. This is a standard rate for general spending.
- Winner: Tie
Welcome Bonus
- Blue Cash Everyday: Offers a welcome bonus after spending a certain amount within the first few months. This can offset spending.
- Blue Cash Preferred: Offers a welcome bonus after spending a certain amount within the first few months. This can offset spending.
- Winner: Tie
Introductory APR
- Blue Cash Everyday: Offers an introductory 0% APR on purchases and balance transfers for a set period. This can help save on interest charges.
- Blue Cash Preferred: Offers an introductory 0% APR on purchases and balance transfers for a set period. This can help save on interest charges.
- Winner: Tie
Foreign Transaction Fees
- Blue Cash Everyday: Has no foreign transaction fees. This makes it a good option for international travel.
- Blue Cash Preferred: Has no foreign transaction fees. This makes it a good option for international travel.
- Winner: Tie
Credit Score Needed
- Blue Cash Everyday: Requires good to excellent credit. This means you’ll need a good credit score to be approved.
- Blue Cash Preferred: Requires good to excellent credit. This means you’ll need a good credit score to be approved.
- Winner: Tie
Winner by Category
| Category | Winner |
|---|---|
| Rewards on U.S. Supermarkets | Blue Cash Preferred |
| Rewards on U.S. Gas Stations | Blue Cash Preferred |
| Rewards on U.S. Department Stores | Blue Cash Preferred |
| Annual Fee | Blue Cash Everyday |
| Overall Rewards Potential | Blue Cash Preferred (for high spenders) |
What They Have in Common
- Rewards on General Purchases: Both cards offer 1% cash back on all other eligible purchases, providing a baseline reward rate for everyday spending outside of the bonus categories.
- Purchase Protection: Both cards include purchase protection, safeguarding your purchases against damage or theft for a specified period.
- Extended Warranty: Both cards offer extended warranty coverage, which can extend the manufacturer’s warranty on eligible purchases.
- Travel Accident Insurance: Both cards provide travel accident insurance, offering financial protection in case of accidental death or dismemberment while traveling.
- Car Rental Loss and Damage Insurance: Both cards offer car rental loss and damage insurance, which can cover damage or theft of a rental vehicle.
- Cash Back Redemption Options: Both cards offer multiple ways to redeem your cash back rewards, including statement credit, check, and direct deposit.
Blue Cash Everyday vs Blue Cash Preferred Buying Guide
Rewards and Cash Back Comparison
The Blue Cash Everyday card offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases. The Blue Cash Preferred card provides a more generous rewards structure: 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 3% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases. Consider your spending habits at supermarkets to determine which card maximizes your rewards.
Annual Fee Consideration
A key difference between the cards is the annual fee. The Blue Cash Everyday card has no annual fee, making it a lower-risk option for those who spend less or prefer to avoid fees entirely. The Blue Cash Preferred card has an annual fee. Evaluate whether the higher rewards offered by the Preferred card outweigh the cost of the annual fee, especially if you spend a significant amount at supermarkets. Calculate your potential rewards to see if they justify the fee.
Spending Habits and Categories
Carefully analyze your spending patterns across the different bonus categories. If you spend a lot on groceries, the Blue Cash Preferred card’s higher rewards rate at supermarkets will likely be more beneficial. If your spending is more diversified, or if you spend less on groceries, the Blue Cash Everyday card might be a better choice, given its lack of an annual fee. Look at your gas station and department store spending as well.
Introductory Offers and Bonuses
Both cards often come with introductory offers, such as a signup bonus or a 0% introductory APR on purchases or balance transfers. These offers can provide significant value, especially in the first year. Compare the current offers for each card, noting the bonus amount, spending requirements, and the length of the introductory APR period. Consider these factors when making your decision, as they can significantly impact your overall value.
Creditworthiness and Approval Odds
Your credit score plays a significant role in determining your approval odds for either card. Generally, both cards require good to excellent credit. Assess your credit score and review the credit requirements of each card to determine which one you are more likely to be approved for. If you’re unsure of your creditworthiness, consider checking your credit report and address any potential issues before applying.
Additional Card Benefits
Beyond rewards, consider any additional card benefits. Both cards typically offer benefits like purchase protection, extended warranties, and car rental loss and damage insurance. Compare these benefits to see if one card offers more attractive perks for your needs. These extra benefits can provide additional value beyond the rewards program, making one card a better choice based on your lifestyle.
Who Should Buy What?
Buy Blue Cash Everyday If…
- You want a card with no annual fee.
- Your spending on U.S. supermarkets is moderate.
- You value simplicity and a straightforward rewards structure.
- You prefer to avoid paying an annual fee.
Buy Blue Cash Preferred If…
- You spend a significant amount on U.S. supermarkets.
- You are comfortable paying an annual fee to maximize rewards.
- You want to earn a higher cash back rate on gas and department stores.
- You want to maximize your rewards potential.
Frequently Asked Questions
What is the primary difference between the Blue Cash Everyday and Blue Cash Preferred cards?
The primary difference is the rewards structure and the annual fee. The Blue Cash Preferred offers higher rewards rates, especially at supermarkets, but it also has an annual fee. The Blue Cash Everyday offers lower rewards but has no annual fee. This difference is critical for deciding which card is better.
How does the supermarket rewards work for both cards?
Both cards offer rewards on supermarket purchases, but the rates and limits differ. The Blue Cash Preferred offers 6% cash back on up to $6,000 spent per year at U.S. supermarkets, then 1%. The Blue Cash Everyday offers 3% cash back on the same category, up to the same limit. After the limit, both cards earn 1% back.
What happens if I exceed the supermarket spending limit?
Once you spend over $6,000 annually at U.S. supermarkets, the rewards rate on those purchases drops to 1% for both cards. This means any additional supermarket spending during that year will earn a lower reward. It is important to track your spending to maximize your rewards.
Do both cards offer any other bonus categories?
Yes, both cards offer bonus categories beyond supermarkets. Both cards offer 3% (Preferred) or 2% (Everyday) cash back at U.S. gas stations and select U.S. department stores, and 1% back on all other purchases. Carefully consider your spending in these categories when choosing a card.
How are the rewards redeemed?
Rewards are typically redeemed for statement credits, checks, or gift cards. The redemption process is straightforward, and the value of each point is generally one cent. You can choose to redeem your rewards at any time, but it is best to redeem them when you have a significant amount of rewards to maximize the value.
Are there any balance transfer options?
Both cards may offer balance transfer options with introductory APRs. These offers can be helpful for consolidating debt and saving on interest. However, be aware of balance transfer fees, which can apply. Evaluate these factors when considering a balance transfer to ensure it aligns with your financial goals.
Which card is better for someone with a low annual grocery spend?
For someone with a low annual grocery spend, the Blue Cash Everyday card is often the better choice. Since it has no annual fee, you won’t lose money on the annual fee if you don’t spend enough at supermarkets to offset it. The lower, but fee-free, rewards structure is preferable in this case.
Final Verdict
Choosing between the Blue Cash Everyday and Blue Cash Preferred cards requires careful consideration of your spending habits, particularly at supermarkets, and whether the annual fee of the Preferred card is justified by the higher rewards. The Blue Cash Preferred offers a better rewards rate at supermarkets for those spending heavily in this category, while the Blue Cash Everyday provides a no-annual-fee alternative. Evaluate your spending, and factor in the additional benefits offered by each card.
Winner: Blue Cash Preferred