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American Express Blue Cash

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In general, the Blue Cash Everyday is a nice improvement over the old Amex Blue Cash card.

Big spenders who often run up large gas and grocery bills beyond the $6,500 spending threshold will lament the smaller rewards rates on the new Everyday card, but many cardholders will probably be better off now that the threshold has been eliminated (yes, these new cards pay maximum rewards from the first dollar spent). The addition of bonus rewards on department stores in lieue of drugstores will probably also better suit the average household, since I know I spend a lot more money at Target than I do at CVS.

American Express also offers another version, called the Blue Cash Preferred, which offers higher bonus rewards rates in exchange for a $75 annual fee. This version pays 3% on gas and department store purchases, rather than 2%, and a huge 6% on groceries instead of 3%. So for those households that spend more than $50 a week on groceries, this will be an even better option.

Another welcome change for the new cards is that the old Blue Cash only paid out the cash back rewards once annually, as a statement credit at year-end, while most other cards pay rewards that are redeemable for cash and giftcards throughout the year. Now, the new Everyday version offers this same sort of flexibility, so that users can redeem their rewards whenever they want, in increments of $25 or more.

As a holder of the Blue Cash card, I can attest that the card has had a high degree of accuracy categorizing Gas & Groceries. I’ve effectively gotten over 2% rewards using this card for the last 5 years, and I anticipate the new cards to have the same sort of value for most cardholders.

The only hiccup is that gas and grocery purchases, as with most credit cards, don’t earn the higher bonus reward rates at Wholesalers. So if you do most of your gas pumping and grocery shopping at Costco, you won’t earn the full 2-3% offered by this card. If that’s a big portion of your spending, you may want to consider the Costco American Express Card, where you will earn 3% on Costco gas instead of 1% with Blue Cash, and you’ll earn the same 1% base rate on all other Costco purchases.

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  • http://twitter.com/grandma_awesome Diane Hunt

    My cash back gets automatically credited to my account each year. I see a lot of other cards on here with mile bonuses, but I’ll happily stick with cash back; I can never seem to redeem miles when I need them.

  • Maggie

    Get the Venture Card from Capital One!!! I’ve had it since July 2010 and wow……..so many miles since you get twice the amount of what you spend in miles. Purchased something for $3,000 and guess what?! $6,000 miles. Adds up quick!  Have already paid for 2 plane tickets. I think it’s the BEST card out there right now for mile rewards, especially if you are looking to travel once or twice a year.

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  • Peppyd1414

    Nerdwallet,

    Would like your opinion.  I have a capitol one card with no annual fee that pays 2 points on every dollar I spend or 2% back on all purchases. Similar to the Capital Venture card without the fee. Points can be redeemed for just about anything. 100 points translates to $1. So if I want something that is $100 dollars, I would redeem 10,000 points.  Should I stick with the card or go with the everday card? 

    • http://www.nerdwallet.com/ Tim

      That’s a hard question to answer without knowing exactly how you spend your money. I tend to be a big fan of straightforward 2% back cards, since I rarely spend enough on bonus categories to get more than 2% overall. For the categories where I do spend more (like gas), I just carry a separate credit card with a higher reward rate on that category.

      In your case, it depends on how much money you spend on gas, groceries, and department stores. If it’s most of your expenditures, then the Everyday could definitely be better.

      Why don’t you try to compare the two and see how it works out:

      http://www.nerdwallet.com/compare/

      • Deby Pierce

        Arco only takes a debit card.  Can this card be used as a debit card? and are there any fees for using it as a debit card?

  • Bewisty

    We pay over $2,000/mo on daycare expenses and can pay by credit card. We are trying to figure out what would be the best rewards card to use for that expense- travel or cash back? It seems most of the cash back options have the best returns for things like food, gas and entertainment. What should we do?

    • http://www.nerdwallet.com/ NerdWallet

      There aren’t any cards I know of that pay bonus rewards for day care, so your best bet is probably a simple cash back card.

      Now, if you travel a lot and can truly make the most of travel rewards, you may want to consider those as well, but they’ll be a bit more complicated.

  • BigB985

    Technically you can get 3% or 6% cash back with this card on Amazon or any other retailer. Both Kroger and Publix and a lot of other grocery stores offer gift cards. When I buy them there I get the grocery cash back for them. Also with Kroger it counts as double fuel points. For instance today I purchased a $100 gift card at Kroger for Amazon with my Everyday version of the card. Not only will I get $3 back from the 3% but I will get 20 cents off per gallon on my next fuel purchase at Kroger(equals another $3 back assuming a 15 gallon fillup).

  • Deb16

    NerdWallet,

    I am getting married in September and would like to open up a credit card (thinking AMEX) to book the honeymoon airfare, hotel, etc. and any other last minute items that may come into play. I plan to pay it off right after the wedding and just use it sparingly. I carry a balance on one card, but would like to know what you think my best option is.

    • http://www.nerdwallet.com/ NerdWallet

      Hi Deb,
      If you’re looking for a quick, one-and-done travel card, I’d recommend the Chase Sapphire Preferred. Its annual fee is waived the first year, and if you redeem its 50,000-point signup bonus for travel, it’s worth up to $665. Bes,t
      Anisha

  • KCranmer87

    NerdWallet,

    I have had the Blue Cash Everyday card for two months now and my account shows $0 Reward Dollars even though I’ve spent well over $2,000. I know there is an introductory 3 month period but I am concerned…any advice?

    • FLSaver

      There is a delay of a couple of months before the rewards start showing up. It’s kind of a pain but they will show up. Also if you’re late at all you lose your rewards, so don’t miss any payments!

      • KCranmer87

        good to know! thank you very much

  • Itmutt

    So say I spend $2,500 the first day I get the card. That will be a total of $125 cash back? This being the $100 reward and the 1% reward on the purchase. Does this seem right or to good to be true?

    • http://www.nerdwallet.com/ NerdWallet

      Are you planning on cancelling the card right after?

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