CNN Underscored reviews financial products based on their overall value. We may receive a commission through our affiliate partners if you apply and are approved for a product, but our reporting is always independent and objective. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Our quick take: The Blue Cash Everyday® Card from American Express offers a lucrative rewards rate for U.S. supermarket and U.S. gas station spending and purchases made with U.S. online retailers. Best of all, there’s no annual fee (see rates and fees).
Pros:
- Earn 3% cash back on up to $6,000 spent at U.S. supermarkets each year (then 1% back).
- Earn 3% cash back at U.S. gas stations on up to $6,000 spent each year (then 1% back).
- Earn 3% cash back on up to $6,000 spent on U.S. online retailers each year (then 1% back),
- Earn a welcome bonus of $200 when you spend $2,000 on purchases within six months of account opening.
- Qualify for an introductory 0% APR for purchases and balance transfers for 15 months from account opening, followed by a variable APR of 18.99% to 29.99% (see rates and fees).
- Includes up to $84 in Disney Bundle statement credits and up to $180 in Home Chef statement credits every year, dispersed monthly.
- No annual fee.
Cons:
- Earns 1% cash back on all other purchases.
- Spending caps apply to bonus categories.
- Charges a 2.7% foreign transaction fee (see rates and fees).
- Reward Dollars earned with the card can only be redeemed for statement credits.
Current sign-up bonus: Qualify for a $200 welcome bonus when you spend $2,000 on purchases within six months of account opening.
Best for: People who spend a lot on groceries and gas and want to earn cash back rewards without paying an annual fee. It can also be a good option for online shoppers.
Digging into the Blue Cash Everyday
While American Express offers cards that rack up points in the American Express Membership Rewards program, the Blue Cash Everyday is a cash back credit card. It’s best for people who don’t travel often and don’t plan to, as well as those who really only want to redeem their rewards for statement credits to cover their charges.
The lack of an annual fee on the Blue Cash Everyday is a major plus, and its earning rates aren’t too shabby, either. Consumers who choose this card will earn at the following rates:
- 3% cash back on up to $6,000 spent at U.S. supermarkets each year (then 1% back).
- 3% cash back at U.S. gas stations on up to $6,000 spent each year (then 1% back).
- 3% cash back on up to $6,000 spent on U.S. online retail purchases each year (then 1% back).
- 1% cash back on all other purchases.
As mentioned, the card offers a nice welcome bonus. Right now, you can earn $200 after you spend $2,000 on purchases within six months of account opening. That’s a solid welcome bonus for a card without an annual fee.
Advantages of the Blue Cash Everyday
The Blue Cash Everyday’s major upside is its bonus categories, which can be used to boost your rewards earnings when making common purchases. If you happen to spend $6,000 each year at U.S. supermarkets, $6,000 per year at U.S. gas stations and $6,000 per year shopping online with U.S. retailers, you would rack up $180 in cash back in each category for a total of $540 per year.
The Blue Cash Everyday also includes statement credits that make the card more valuable if you can use them. Specifically, these you can earn up to $84 in Disney Bundle statement credits per year and up to $180 in Home Chef statement credits per year. The Disney credit applies in $7 monthly increments when you spend at least $12.99 per month on a Disney Bundle subscription and pay with your Blue Cash Everyday card. Similarly, the $180 Home Chef credit is given out in $15 monthly increments.
Another big upside of the Blue Cash Everyday is its introductory APR. You’ll receive a 0% APR on purchases and balance transfers made in the first 15 months that your account is open. Just be sure to pay it off before the promotional period ends, as your interest rate will rise to a variable APR of 18.99% to 29.99%
Finally, the Blue Cash Everyday also offers purchase protection for eligible products purchased with the card. Purchases are covered against loss, theft and damage for 90 days from the date of purchase, up to $1,000 per item and $50,000 in claims per calendar year. However, claims made due to natural disasters are limited to $500 per covered event.
Disadvantages of the Blue Cash Everyday
There are a few downsides to the Blue Cash Everyday, which become apparent when you compare it to other cash back credit cards. The biggest is the fact you earn rewards in the form of Rewards Dollars which can only be redeemed statement credits. Many other cash back cards let redeem rewards for cash back, gift cards, merchandise, travel and more.
It’s also worth highlighting the individual $6,000 caps that apply to this card’s three bonus categories. These have the potential to limit your rewards earning if you spend a lot in the card’s three bonus categories.
Further, the card charges a 2.7% foreign transaction fee. So if you make a $100 purchase in a currency other than US dollars, you’d pay an extra $2.70 fee. This makes the Blue Cash Everyday a poor choice if you’re looking for a credit card for overseas purchases. If this applies to you, consider opening a credit card that doesn’t charge foreign transaction fees.
Stacking up the Blue Cash Everyday to our benchmark card
CNN Underscored has selected the Citi Double Cash® Card as our current “benchmark” credit card. This doesn’t mean it’s the best credit card on the market. Instead, we use a benchmark card as a basic standard to compare other credit cards and their features.
The chart below shows how the Blue Cash Everyday scores against our benchmark. The color green indicates a card feature that’s better than our benchmark, whereas red indicates the feature is worse than our benchmark. White indicates the feature is either equivalent or cannot be directly compared to our benchmark.
It’s easy to see these two cards are pretty comparable, but that they each shine in a few different areas. For example, the Blue Cash Everyday stands out in its bonus categories and the fact it offers an introductory 0% APR offer for both purchases and balance transfers. It also comes with a welcome offer, which the Citi Double Cash does not.
Meanwhile, the Citi Double Cash Card is frequently listed as one of the best balance transfer cards due to the length of its introductory offer. Its flat rewards rate of 2% on all purchases (1% when you buy, 1% when you pay it off) can also be attractive for cardholders who don’t want to deal with bonus categories of rewards caps.
Make sure to read over our credit card methodology for more details on what we take into account when it comes to perks, protections and redemption value.
Other credit cards similar to the Blue Cash Everyday
The Blue Cash Everyday is similar to another top credit card for gas and groceries called the Blue Cash Preferred® Card from American Express. This card is the premium version of the Blue Cash Everyday and charges a $95 annual fee (see rates and fees) that’s waived the first year.
The Blue Cash Preferred earns 6% cash back on up to $6,000 in spending at U.S. supermarkets each year (then 1% back), 6% cash back on select U.S. streaming services, 3% cash back on U.S. gas station and transit spending and 1% cash back on all other purchases.
With this in mind, the Blue Cash Preferred may be better suited for those willing to pay an annual fee (after the first year) in order to get a higher rewards rate for bonus category purchases.
If you’re a big grocery store spender, you may also consider the American Express® Gold Card despite its $250 annual fee (see rates and fees). That’s because this card lets you earn 4 points per dollar on up to $25,000 spent at U.S. supermarkets each year (then 1 point per dollar), 4 points per dollar at restaurants worldwide, 3 points per dollar on flights booked with airlines or through AmexTravel.com and 1 point per dollar on all other purchases.
The Amex Gold card earns points in the American Express Membership Rewards program, which can be used for premium travel redemptions like point transfers to Amex airline and hotel partners. For reference, travel website The Points Guy values Membership Rewards points at 2 cents apiece when redeemed for travel.
Should you get the Blue Cash Everyday?
Ultimately, the Blue Cash Everyday is best for those who want a simple cash back credit card that earns bonus rewards on common purchases. It offers a generous rewards rate in several popular categories and doesn’t charge an annual fee. Plus, you can redeem your rewards for statement credits that lower your monthly credit card bill.
That said, you should still compare it to other cash back credit cards to find the right fit. Make sure you assess these cards based on their rewards rates, fees, redemption options and other perks to find the best fit for your wallet.
Learn more and apply now for the American Express Blue Cash Everyday.
Click here for rates and fees of the Blue Cash Everyday card.
Click here for rates and fees of the Blue Cash Preferred card.
Click here for rates and fees of the American Express Gold card.
Find out which cards CNN Underscored chose as our best credit cards currently available.
Get all the latest personal finance deals, news and advice at CNN Underscored Money.