Review of American Express Blue Cash



The American Express Blue Cash was last reviewed on 19th January 2006.

Summary - We recommend the American Express Blue Cash to those who spend a lot on their card (up to $50,000) and want to earn cash rebates because

  • You can earn 5% rebates on purchases at standalone supermarkets, gas stations and drugstores after you annual spending exceeds $6,500
  • Earn 1.5% rebates on "other purchases" once your annual spending exceeds $6,500
  • It has no annual fee and you could potentially get a reasonably low apr


Rebate Formula - This is how the new American Express Blue Cash rebate formula works. For spending up to $6,500, you earn 1% rebate on everyday purchases (defined as spending at standalone supermarkets, gas stations and drugstores) and 0.50% on "other purchases". For spending from $6,500.01 to $50,000, you earn 5% rebate on everyday purchases and 1.5% on other purchases. The new formula is an improvement over the old one, especially for the "everyday purchases" portion. Previously, you had to carry a balance to earn 5% rebates on "everyday purchases". Now you just have to spend above $6,500 to earn 5% rebates. The new formula is better off for spending below $6,500 as the tiered formula is simpler. Most cardholders will be very pleased with the new changes (especially those who do not carry a balance and spend quite a bit on "everyday purchases").

New Rebate Formula
Annual Spending Rebate % - Everyday Purchase Rebate % - Other Purchases
Up to $6,500
1.00%
0.50%
$6,000.01 to $50,000
5.00%
1.50%


Other travel or shopping benefits - The American Express Blue card has the following travel and shopping benefits.

1. It allows cardholder to make purchases at shopamex.com, a shopping comparison site designed for Amex cardholders. You can also redeem points for your purchases.

2. You can get a $100 credit back into your statement if you spend $3,000 on a qualifying pvacation using your card at participating American Express Travel Services.

3. Buyers Assurance - This program essentially doubles your warranty for products you have purchases up to a limit of one extra year. Coverage is good for up to a purchase of $10,000 and up to $50,000 worth of purchase a year.

4. Purchase Protection Plan - under this plan, you can return any purchase you make if it is accidentically damaged within 90 days. You are covered up to $1,000 per occurance and up to $50,000 per year.

5. American Express Selects - American Express has partnered with many merchants worldwide to offer discounts to cardholders. Those who travel a lot may find this beneficial.

Fees - There is no annual fee for the American Express Blue Cash Card. The apr is either prime rate plus 4.99%, 6.99% or 9.99% depending on your credit. You get a 0% introductory apr on purchases for 6 months and a 4.99% fixed rate on balance transfer for the life of the transfer if you submit the transfer request with your application. The American Express Blue Cash Card uses the average daily balance method (including new purchases) of calculating your monthly balance and has a 20 day grace period.

Summary - The American Express Blue Cash Card will appeal to those who spend a lot on their card and looking to earn good cash rebates. Though it has a tiered rebate formula, it pays 1.5% rebates on "other purchases" which no other card does. You also earn 5% rebates on "everyday purchases". We have included the Blue Cash® in our Editor's Choice List.

Positives
  • You can earn 5% rebates on everyday purchases and 1.5% rebates on "other purchases" once annual spending exceeds $6,500
  • No annual fee
  • 0% introductory apr on purchases for 6 months
  • 4.99% apr on balance transfer for the life of the transfer


Negatives
  • Tiered rebate formula - spending below $6,500 does not earn "maximum rebates"



American Express Blue Cash Card
Reward Benefits
Rebate Percentages Earn 5% rebates on "everyday purchase once annual spending exceeds $6,500
Earn 1.5% rebates once annual spending exceeds $6,500
Caps on Rewards $50,000 of eligible annual spending
Travel and Insurance Benefits
Up to $100,000 Travel Accident Insurance
Auto Rental Insurance
Hotel assured reservations
Emergency worldwide card replacement
Other Benefits
Year-end account summary
24 hour customer service
Online fraud protection
Return Protection
Warranty extension
Purchase protection plan
Cost/Fees/Interest rates
Introductory rate 0% introductory APR on purchases for either 6 months
Fixed APR of 4.99% on balance transfers upon application throughout life of initial balance transfer
Annual Fees No annual fee
Purchase APR Prime Rate plus 4.99%, 6.99% or 9.99%
Balance Transfer APR Prime Rate plus 4.99%, 6.99% or 9.99%
Cash Advance APR Prime Rate plus 14.99%
Penalty/Default Rate APR Fixed 12.99% or Prime Rate plus 21.99% for serious default
Min Finance Charge $0.50
Grace Period 20 days
Balance Calculation Method Average Daily Balance (including new purchases)
Balance Transfer Fee No balance transfer fee for introductory offer. Balance transfer fee may apply for future balance transfers
Cash Advance fee 3% min $5.00
Over-the-credit-limit fee $35.00
Late Payment fee $15.00 - up to $100
$29.00 - $100 up to $1000
$35.00 - $1000 and greater



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If you already have American Express Blue Cash and want to comment on it, you can post your review here.








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