AmEx Gold vs. Blue Cash Preferred: Your Habits Color Your Choice

When deciding between the American Express® Gold Card and the Blue Cash Preferred® Card from American Express, a key consideration is the kinds of rewards they earn and how you can use them. The Blue Cash Preferred® Card from American Express is a cash back card; its rewards can be redeemed for credit against purchases.* The American Express® Gold Card earns Membership Rewards points you can redeem in a variety of ways, including for travel, gift cards and statement credit.

Redeeming for travel is the key to getting maximum value from the American Express® Gold Card. You’ll be able to rack up points quickly on dining and grocery spending, and if you transfer those points to travel partners, you can significantly increase their redemption value. Considering the card's $325 annual fee, getting the most out of your rewards and the card’s other perks is a must.

The Blue Cash Preferred® Card from American Express is by no means a slouch, though. Many people will find that this card better fits their spending and redemption preferences. And if you don't want to use rewards on travel, or don't want to fret over redemption values, it's probably the better card for you. A lower annual fee also helps: $0 intro annual fee for the first year, then $95.

If these cards have caught your interest enough for you to be deciding between them, you probably have a sizable food budget and want to be rewarded well for such expenses. Both are among the best credit cards for groceries on account of their high rewards rates at supermarkets. Here’s how to decide between the two.

» MORE: How to choose a rewards credit card

Why Gold might be better for many

Food-centric rewards and perks

Households that spend big on groceries and dining out can accumulate more rewards with the American Express® Gold Card.

Yes, the Gold earns just 4X points at U.S. supermarkets compared with the Blue Cash Preferred’s 6% rate. But the cap on that top rewards rate is significantly higher — up to $25,000 per year, compared with the Blue Cash Preferred’s $6,000 annual limit. Many households easily spend more than $6,000 per year on groceries and may want the American Express® Gold Card to avoid dropping down to a 1% rate on any spending that exceeds the $6,000 cap. Terms apply.

The American Express® Gold Card is the better card for people who spend a big chunk of their budget at restaurants, too. Restaurant spending, which includes takeout and delivery, nets 4X points with the Gold on up to $50,000 in spending per year (then 1X); with the Blue Cash Preferred® Card from American Express, restaurant spending earns just 1%. Terms apply.

Here's a breakdown of the superior earning potential of the American Express® Gold Card based on $4,000 in spending at U.S. supermarkets and $4,000 on dining. Keep in mind that the value you get per point depends on how you redeem those points; more on that later.

American Express® Gold Card cardholders also receive:

• Annual dining credits up to $120, issued in monthly increments of $10, when an eligible purchase is made. Enrollment required. GrubHub orders and purchases from The Cheesecake Factory, Goldbelly, Wine.com and Five Guys qualify for the dining credit. Terms apply.

• An annual credit of up to $100, issued in $50 semiannual increments, when you dine at eligible U.S. Resy restaurants or make other Resy purchases. Enrollment required. Terms apply.

• An annual credit of up to $84, issued in $7 monthly increments, for eligible purchases at U.S. Dunkin locations. Enrollment required. Terms apply.

» MORE: No coupon needed: Cut grocery bills with credit cards

Bonus rewards and valuable redemptions for travel

When you book travel with the Blue Cash Preferred® Card from American Express, you generally earn 1% cash back, period. Travel bookings with the American Express® Gold Card can earn significantly more — 3X points on flights booked directly with airlines or on amextravel.com, and 2X points on prepaid hotels and other eligible travel booked with amextravel.com. Terms apply.

On the rewards-redemption side, if you’re interested in funding part or all of your travel expenses with rewards from your card, the American Express® Gold Card is the clear winner over the Blue Cash Preferred® Card from American Express.

Purchases made with the Blue Cash Preferred® Card from American Express earn Reward Dollars, which can be redeemed only for cash back. However, each swipe of the American Express® Gold Card earns American Express’s proprietary currency, Membership Rewards, which have superior value when redeemed for travel.

For some redemptions, Membership Rewards points are worth a penny or less apiece. But you can get significantly more value by transferring them to AmEx's travel partners, including airlines and hotel chains. When used this way, NerdWallet values Membership Rewards points at 1.2 cents each. (This is a baseline value, drawn from real-world data, not a maximized value. In other words, you should aim for award redemptions that offer 1.2 cents or more in value from your American Express Membership Rewards.)

However, if you'd rather not navigate the complex (but rewarding) process of transferring to travel partners for award redemptions, this may not be your best bet.

» MORE: What’s the value of AmEx Membership Rewards points?

Why some might prefer Blue Cash Preferred

Better cash back redemption value

As mentioned earlier, Reward Dollars earned with the Blue Cash Preferred® Card from American Express can be redeemed only for statement credits that reduce your balance. But that option may be enough for those who just want cash back on their everyday spending. American Express® Gold Card holders can redeem their Membership Rewards for statement credit, too, but the redemption rate is a mere 0.6 cents per point.

Let's look at an example: You spend $1,000 at U.S. supermarkets and then redeem the rewards you earn for statement credit. You’d come away with a $60 statement credit by paying with the Blue Cash Preferred® Card from American Express ($1,000 x 6%) but a mere $24 credit if you used the American Express® Gold Card for the same purchases ($1,000 x 4 points x 0.6 cents per point). Terms apply.

» MORE: Best cash back credit cards

Annual grocery spending less than $6,000

According to the Bureau of Labor Statistics, Americans spent an average of $5,703 on food at home in 2022, the most recent data available at the time of this writing. If that number is close to what your family spends at the grocery store, the Blue Cash Preferred® Card from American Express is likely the better choice for you. You can spend freely knowing that most, if not all, of your grocery spending will get 6% back. Annual spending of $5,700 at U.S. supermarkets at 6% would generate $342 in cash back per year, more than making up for the Blue Cash's annual fee. Terms apply.

Lower annual fee

Some people don’t want to pay big annual fees to carry a card, and indeed, some cards charge hundreds of dollars a year. As the fee increases, people tend to be more mindful of taking advantage of a card’s credits and aligning their spending with its rewards structure.

Breaking even with the Blue Cash Preferred® Card from American Express should be fairly easy for most people. For the first year, you'll have a $0 annual fee. After that, you’ll only need to spend $1,600 a year on groceries to out-earn the card’s annual fee. Terms apply.

» MORE: Best no fee cards right now

Streaming perks

The Blue Cash Preferred® Card from American Express earns 6% on select U.S. streaming services, a rate that is virtually unmatched by other cards. Most major video, radio and music streaming services qualify for the 6% rate (see list here); if you've cut the cord and get all your entertainment via streaming, the rewards for such spending could go a long way toward covering the annual fee with this card. With the AmEx Gold, by contrast, streaming subscriptions earn just 1 Membership Rewards point per $1 spent. Terms apply.

You’ll save even more if you have a Disney Bundle streaming package that costs at least $9.99 a month. Blue Cash Preferred® Card from American Express cardholders get a $7 statement credit each month that an eligible Disney Bundle is charged to the card. Terms apply.

Which card should you get?

Let your redemption preferences guide your decision. If you want to supplement your travel budget with rewards from your card, and you're willing to put in a little work with transfer options to maximize value, the American Express® Gold Card is your winner. But when you aren’t interested in travel hacking — or you already have your travel card of choice — the Blue Cash Preferred® Card from American Express is a stellar card for groceries and other everyday spending.

» NEXT: Cash back vs. travel: How to choose credit card rewards