Blue Cash Everyday® Card from American Express – Review

The Blue Cash Everyday® Card from American Express is a no-annual-fee cash back credit card with a very generous rewards program. Blue Cash Everyday offers 3% cash back (up to $6,000 per calendar year) on U.S. supermarket purchases, 3% cash back on U.S. online retail purchases, 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on everything else. Cash back accrues as Reward Dollars that can be redeemed for statement credits.

Although applicants do need very good credit, Blue Cash Everyday doesn’t require near-perfect credit, as is the case with more generous cards.

Blue Cash Everyday competes with a number of popular cash back and points-based rewards credit cards. These include general cash back cards like the Blue Cash Preferred Card from American Express and the Capital One Quicksilver Credit Card, as well as general rewards credit cards such as Capital One Venture Rewards Credit Card, American Express EveryDay, and Amex EveryDay Preferred.

Key Features

These are the key features of the Blue Cash Everyday Card from American Express.

Welcome Offer

Earn a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months. Cash back accrues as Reward Dollars that can be redeemed for statement credits.

Cash Rewards & Redemption

U.S. supermarket purchases, up to $6,000 total per calendar year, earn 3% cash back. Supermarket purchases above the $6,000 spending cap earn 1% cash back.

U.S. online retail purchases earn 3% cash back.

U.S. gas station and select U.S. department store purchases earn 2% cash back.

All other purchases earn 1% cash back.

Cash back accrues as Reward Dollars that can be redeemed for statement credits. Note that American Express does not include big-box superstores such as Walmart and warehouse club stores such as Costco in its definition of grocery stores.

Introductory APR

Blue Cash Everyday comes with a 0% purchase and balance transfer APR for 15 months from account opening. Following the introductory period’s end, variable regular APR applies, currently 17.74% to 28.74%.

Important Fees

There is no annual fee. Balance transfers and cash advances both cost the greater of $5 or 3% of the transferred or advanced amount. Foreign transactions cost 2.7% of the total transaction amount, regardless of currency denomination.

Credit Required

This card requires excellent credit. You won’t be approved if you have any notable credit blemishes.

Advantages

1. No Annual Fee. Blue Cash Everyday doesn’t have an annual fee, unlike Blue Cash Preferred (its American Express stablemate) and Capital One QuicksilverOne. Among cash back cards without an annual fee, Blue Cash Everyday has one of the most generous cash back schemes around.
2. Valuable Cash Back Rewards. Speaking of generous cash back schemes, Blue Cash Everyday’s cash back program is quite rewarding for cardholders who can fully utilize it. With a $6,000 spending limit, the 3% U.S. supermarket cash back category pays you up to $180 per year, after which you still earn 1% cash back at supermarkets. If you’re shopping for a family, it’s not hard to approach or exceed this spending limit. Meanwhile, the 2% U.S. gas station and select U.S. department store category is great for funding everyday purchases, particularly for fashionable shoppers and frequent drivers. If you focus your spending on the 2% and 3% categories, you can rack up the rewards faster than with a flat 1.5% cash back card. And cash back can be easily redeemed as a statement credit.
3. Cash Back Spending Categories Don’t Change. Blue Cash Everyday’s cash back categories never change – you can always expect 3% at the U.S. supermarket (up to the cap), 2% at U.S. gas stations and select U.S. department stores, and 1% everywhere else. By contrast, Chase Freedom changes is cash back categories quarterly, sowing confusion for cardholders who don’t keep up with the category schedules.
4. Solid Intro APR Promotion. Blue Cash Everyday comes with a 15-month purchase and balance transfer APR promotion (then variable regular APR applies, currently 17.74% to 28.74%).
5. Strong Welcome Offer. Blue Cash Everyday has a very good welcome offer that rewards new cardmembers for spending during the first few months. Many competing cards can’t say the same.

Disadvantages

1. Inflexible Cash Back Redemption Options. The only cash back redemption option here is a statement credit. By contrast, Capital One Quicksilver and QuicksilverOne let you redeem for statement credits and bank account deposits; Bank Americard Cash Rewards Credit Card offers statement credits, bank account deposits, and paper checks; and Citi Double Cash Card allows statement credits, bank account deposits, paper checks, and gift cards.
2. Comes With a Penalty APR. Blue Cash Everyday charges penalty interest, a major drawback for cardholders who occasionally miss payments. Many of its peers, including Chase Freedom, don’t have penalty APRs.
3. No Credit Monitoring or Scores. Blue Cash Everyday has no credit monitoring or score updates as part of its cardmember benefits package.
4. Comes With Foreign Transaction Fees. This card’s 2.7% foreign transaction fee is a bummer for cardholders who travel abroad. With no foreign transaction fees, Capital One Quicksilver has superior options for frequent international travelers.

Final Word

If you don’t fly or stay at hotels often, and spread your spending across a wide range of categories, a cash back rewards credit card is probably a better choice than a travel rewards card or similarly specialized credit card. However, even if you have more specific spending needs, such as travel or business expenses, Blue Cash Everyday is a good card to keep in your wallet.

With 3% cash back at U.S. supermarkets, the Blue Cash Everyday® Card from American Express is great for people who eat lots of meals at home. With 2% cash back at U.S. gas stations and select U.S. department stores, it’s nice for folks who drive long distances and buy clothing or household goods regularly. And, with 1% cash back on everything else, it’s not bad for, well, everything else. When it comes to cash back cards, you can definitely do worse than Blue Cash Everyday.

For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this rates and fees page.