The American Express Blue Cash Everyday Card is a decent no annual fee card for cash back enthusiasts. It’s also the “little brother” of the American Express Blue Cash Preferred Card. This card is great for those who averse to annual fees and cash back enthusiasts alike. It’s also a nice foundational card for your credit history.
However, it is a tough sell for travelers who would rather earn Membership Rewards (MR) points than cash back. Travelers who go grocery shopping often should look elsewhere.
The Blue Cash Everyday Card’s strength lies in its earning structure. It earns a decent 3% cash back at Grocery Stores. The 3% is limited to the first $6,000 spent annually. Thereafter, the rate goes down to 1%.
Plus, the Blue Cash Everyday Card earns 2% at Gas Stations and Department Stores. The Blue Cash Everyday is one of the only credit cards in the industry to have a bonus category dedicated to department stores. You can probably get better rewards from a store credit card. But those are not recommended for travelers.
Furthermore, the Blue Cash Everyday also has a sign-up bonus worth $150. This bonus can be earned after spending just $1,000 in the first three months. This is like getting a 15% return on the first $1,000 in purchases with the card.
American Express’ cash back cards are hampered by having only three ways to redeem cash back: statement credits, gift cards, and merchandise. And only the first two methods will provide any value. This is unfortunate because many competitors offer more ways to redeem. For example, Discover lets you deposit cash back rewards into a bank account among other methods.
This is the most common way to redeem cash back with an Amex credit card. It’s also best for travelers who can put atypical travel expenses on their Blue Cash Everyday and then “erase” them with the cash back.
American Express has six pages of gift cards to choose from on their website. Cash back is worth 1 CPP (like normal) when redeeming for gift cards. Conversely, Membership Rewards points are worth a lot less for this redemption method.
I would select this method out of the three because gift cards can be used at any time. Of course, this assumes I can find a gift card that I would use.
This third method is the least valuable because American Express’ merchandise is overpriced. You can get the same (or similar) merchandise on Amazon or at brick and mortar stores for much less.
American Express Blue Cash Preferred
The Blue Cash Preferred Card is the “bigger sibling” of the Blue Cash Everyday Card. It has a $95 annual fee (NOT waived the first year) and more categories than the Blue Cash Everyday Card.
The Blue Cash Preferred earns 6% cash back at Grocery Stores and at US Streaming Services. It also earns 3% at Gas Stations and for Local Commuter Transit. This card also comes with a higher sign up bonus worth $250, which can be earned after spending $1,000 in the first three months.
People who spend at least $61 per week at Grocery Stores and want cash back should go for the Blue Cash Preferred Card. Otherwise, the Blue Cash Everyday is better.
Bank of America Cash Rewards
The Bank of America (BOFA) Cash Rewards Card has a similar earning structure to the Blue Cash Everyday card. Many cash back enthusiasts use these cards in tandem. The Cash Rewards Card has no annual fee. And it offers a $200 sign-up bonus, which can be earned after spending $1,000 in the first three months.
This card earns 3% back in a category of choice. You can choose from the following categories: dining, drug stores, gas, home improvement / furnishings, online shopping, or travel. The Cash Rewards card also earns 2% back at Grocery Stores and Wholesale Clubs. The BOFA card’s increased earning structure means that it could be more lucrative than the Blue Cash card for many people.
Furthermore, this card is also part of BOFA’s Preferred Rewards Program. This program lets BOFA account holders earn 10% more rewards on their credit cards. That percentage increases if you have more than $20,000 total in your BOFA accounts.
This card is better than the Blue Cash Everyday for BOFA account holders and people who don’t go to the grocery store that often. However, those who go to the grocery store often will earn more with the Blue Cash Everyday card.
The Blue Cash Everyday Card is a nice card for people who have light grocery expenses and sometimes shop at department stores. Plus, it can be useful in two unusual ways for travelers: paying for atypical travel expenses and as a foundational card for credit history.
I got my Blue Cash Everyday Card at a time when I wasn’t sure if I was traveling in the future. This card has served me well, even though I don’t use it every day.
Apply Today: American Express Blue Cash Everyday