Blue Cash Preferred from American Express 2022 review: The best grocery rewards card

Redeeming rewards

Once you've put away your groceries, filled the tank, and have the latest episode of your favorite show queued up, redeeming is easy. Cardholders can redeem rewards for:

• Statement credits
• Gift cards
• Merchandise

Statement credits will reduce the overall balance of the account. Just keep in mind that it won't cover the required minimum monthly payment should you revolve a balance. By paying off your statement balance in full each month, you'll avoid any interest charges, so it's recommended that consumers get in that habit.

Card benefits

While the true draw for the Blue Cash Preferred is its impressive rewards, cardholders also will find value in its benefits and protections:

• $120 Equinox+ credit: Get $120 back in statement credits each year when you pay for an Equinox+ membership.
• ShopRunner membership: Receive free 2-day shipping on eligible items through the ShopRunner network.
• Amex Offers: Earn extra rewards on purchases from a list of select merchants.
• MyCredit Guide: Check your VantageScore 3.0 credit score and TransUnion credit report for free.
• CreditSecure: Monitor one of your credit scores, get help with identity theft, and receive fraud assistance. It's $1 for the first month, then $17 monthly.
• Car Rental Loss and Damage Insurance: Decline the rental car provider's insurance offer and charge the full amount to your card. Your rental will be covered against damage and theft.
• Global Assist Hotline: Get help with medical, legal, and other assistance when you're away from home.
• Purchase Protection: Your new purchases are covered against damage and theft for 90 days.
• Return Protection: If the retailer won't take back a purchase made within 90 days, American Express may refund the purchase excluding the cost of shipping and handling. Up to $300 per item, and up to $1,000 in a calendar year.
• Extended Warranty: American Express will extend a manufacturer's warranty for an additional year so long as it's five years or less.

Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Head over to American Express's website, where you can securely apply. Fill out the required information including but not limited to, contact information, income, and monthly rent or mortgage payment. American Express will likely get back to you instantly with its decision or it will contact you if further information is required.

The Blue Cash Preferred is designed for consumers with good to excellent credit. To be considered for that credit range, your FICO score must be at least 670, or your VantageScore must be at least 661.

The Blue Cash Everday doesn't have an annual fee, but it offers half of the rewards. Cardholders will earn 3% cash back (on the first $6,000 spent annually in each category, then 1%) at U.S. supermarkets, U.S. gas stations, U.S. online retail purchases and 1% for everything else. It's a bit simpler than the Blue Cash Preferred, and less rewarding.

While the lack of an annual fee may seem enticing, you'll actually get more for your money by choosing the Blue Cash Preferred.

No, the Blue Cash Preferred is not a metal card. Instead, it's a sleek, plastic design.

If you spend just $1,600 on groceries per year, you'll earn $96 back, which is enough to cover the fee. If you take into account the card's other bonus categories, such as streaming, gas, and transit, cardholders will earn much more than that.

Check out our page on the 5 best credit cards for groceries to see how it stacks up to the competition.

If you don't have a credit card that earns rewards for necessary purchases like gas and groceries, you'd be hard pressed to find a better option. The Blue Cash Preferred offers one of the highest rewards rates for groceries, if not the highest, among consumer credit cards.

While it does have an annual fee, it doesn't take much spending at all to cover it, and then some. The grocery rewards add up quickly, before even considering its other bonus categories. Where the card is lacking is in the benefits, but there are still a handful of perks that cardholders can appreciate, such as rental car insurance, Purchase Protection, Extended Warranty, Return Protection, and a ShopRunner membership.

The biggest draw is earning a return on spending you're doing anyway. Earning rewards for purchases you have to make should be an easy choice for most consumers.

If you need a card that rewards you for gas and groceries, choose this one. It's simple to use and the rewards add up quickly. I've had the card for a number of years now, and have hardly noticed the annual fee. I spend about $400 on groceries each month, so the card pays for itself in just four months, without considering the return on gas and streaming. That means the cash back accrued over the other eight months of the year is simply money that goes back into my account.

The benefits of Purchase Protection and Extended Warranty give cardholders added security when making purchases with the card, and the ShopRunner membership cuts down on shipping time if you can take advantage of it.

The Blue Cash Preferred offers one of the highest cash back rates for grocery spending, so in terms of a grocery credit card, this is your best bet. However, for consumers who maybe don't want to have multiple credit cards or are put off by the annual fee, there are a handful of other reward cards worth considering.

• Chase Freedom Flex℠: Earn 5% cash back (on up to $1,500 in total combined purchases each quarter you activate) in bonus categories that change every quarter. Rotating categories include grocery stores, streaming services, and Amazon purchases. In addition to the rotating rewards, the card earns 5% and 3% cash back for static categories, so it covers a ton of ground and doesn't require an annual fee.
• Wells Fargo Active Cash® Card: Earn 2% cash rewards on purchases, for no annual fee. It's a simple but rewarding card that features strong Visa Signature protections. It pairs well with other cards, like the Blue Cash Preferred. Use the Blue Cash Preferred for groceries, gas, and streaming services, and the Active Cash for everything else to maximize your return.
• Costco Anywhere Visa: If you're a Costco member and are looking for a gas card, consider the Costco Visa card. It earns 4% cash back (on eligible gas for the first $7,000 per year) for Costco gas, but that can be increased to 6% cash back if you're an Executive member. Executive members ($120 annually at Costco) earn 2% cash back (on the first $1,000 spent annually) for Costco purchases. However, the card features very few other benefits.