AMEX Blue Cash Card: Everyday vs Preferred Card

I signed up for American Express Blue Cash Everyday Card a few weeks back and took advantage of the $100 cash back offer. When I clicked on the link, I was given an option to choose between two cards: Blue Cash Everyday or Blue Cash Preferred. They’re basically identical cards but the Preferred Card has a $75 annual fee while the Everyday card has no annual fee. The differences come in the rewards the cards provide. The new and improved rewards program from American Express is excellent and I believe it is superior to ShopDiscover by Discover and Ultimate Rewards program by Chase.

With the Everday Card, you will receive 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back everywhere else. With the Preferred Card, you will receive 6% at supermarkets and 3% at gas station and department stores, and 1% everywhere else. They both sound a pretty good rewards program, but which card is better?

It all depends on how much you spend annually. If you spend enough to recoup the $75 annual fee, then the Preferred Card is a better option. Otherwise, the Everyday Card might be the better option. I decided on the Everyday Card because I didn’t want to deal with the annual fee and have to worry whether I’m spending enough. But let’s take a look at the actual breakdown to see which card is better.

Over the past 12 months, I spent about $25,000 in credit card purchases. $4,500 was spent towards gas and $2,800 at grocery stores. Our shopping at department stores was negligible. Assuming I spend about the same amount this coming year, let’s compare the numbers for both cards.

Using Everyday Card, I would receive ($4,500 x 2%) + ($2,800 x 3%) + ($17,700 x 1%) = $351 total cash back.

Using Preferred Card, I would receive ($4,500 x 3%) + ($2,800 x 6%) + ($17,700 x 1%) – ($75 fee) = $405 total cash back.

So, using my last year’s spending metrics, choosing the Preferred Card would provide me with $54 more cash back every year. On top of that, the Preferred Card is currently offering $150 sign up bonus compared to only $100 for Everyday Card.

Preferred Card is better for me. Which card is better for you?

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. This site may be compensated through American Express Affiliate Program.