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If you’ve been considering the Blue Cash card from American Express, you’ll be happy to know that the cards have been made even more attractive with their increased welcome bonuses.
If you receive a Blue Cash Preferred® Card from American Express, you can receive $350 in cash by spending $3,000 within the first six months of opening an account. You will receive your cash back in the form of premium dollars which you can use as a credit statement.
Meanwhile, American Express’s Blue Cash Everyday® Card offers a lower welcome bonus of $200 in cashback when you spend $2,000 within the first six months of opening an account. You will also receive your cashback in the form of premium dollars for this card.
Here we take a look at the bonuses, rewards and annual fees of these cards to give you an idea of their value in the first year and beyond.
The Meaning of the Amex Blue Cash Bonus Card: A Brief Overview
Blue Cash Everyday Card from American Express
American Express Blue Cash Preferred Card
|Estimated cost in the first year ($15,900)||$508||$623|
Which card is better?
The Blue Cash Preferred card offers a higher reward rate and a better welcome bonus than the Blue Cash Everyday card. These two points can make the preferred card an obvious choice.
But since the Preferred card includes a $95 annual fee, you might be wondering: is the Preferred card really the best one in the long run?
Earnings for the first year
With a higher cashback rate in practical categories such as shopping at supermarkets and gas stations in the US, Blue Cash Preferred delivers a higher average reward rate for most consumers than Blue Cash Everyday.
Based on average consumer spending on gas, groceries, and department stores, we estimate that you can earn a total of $623 in cash on a $15,900 spend with a Blue Cash Preferred card in the first year. This takes into account the $350 welcome bonus (after you spend $3,000 during the first six months) and cashback earned across all spending categories.
Average earnings on a Blue Cash Everyday card are up to $508 in the first year ($308 plus $200 credit after you spend $2,000 on purchases during the first six months). While impressive on its own, that’s $115 less than the Preferred Card’s first year earnings.
Second year and beyond
Once you’ve completed your first year of card membership, the cost difference between the two cards is smaller, but your preferred card still wins. Even without the welcome bonus, the Preferred card offers an average of $323 per year, while the Everyday card only offers $308 – a $15 difference.
Check out our comparison below to see how the cards stack up in Year 2 and beyond when there is no welcome bonus in the game.
Blue Cash Cards: Second Year Profit (based on $15,900)
|Blue cash card for every day||Blue Cash Preferred Card|
|$15,900 x 1.94% average cashback rate = $308.||Average cashback rate $15,900 x 2.63% – $95 annual fee = $323.|
The current $95 annual fee for the Blue Cash Preferred card is beneficial for most cardholders who intend to use it in the short and long term. The Blue Cash Everyday Card is a good option for rewards if you’re looking for a credit card with no annual fees, as reward values are comparable to Blue Cash Preferred after the first year.
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