Here's a GREAT, new cash back credit card that makes a lucrative booster card for those of you who use a multi-card cash back strategy. A reader tipped me off to it, I did some investigation, and sure enough, it's a winner.
- The card is the Blue Cash Preferred(SM) Card from American Express. If you click the link in the preceding sentence, you'll get two card choices. You want the Preferred card -- which is on the right.
- The Preferred card has an annual fee of $75 (bummer) but also comes with a $150 "welcome bonus", so the first year is free (plus $25 extra).
- Even if the first year isn't free, this card is a great deal -- because it gives 6% cash back on grocery purchases. Yes, you heard that correctly -- 6%!!!! As I'll show below, this makes this card one that's actually worth the annual fee.
- The card also earns 3% cash back at gas stations and department stores. Not bad at all. FYI, you get 1% in locations other than grocery stores, gas stations, and department stores.
- If you don't want to pay the annual fee, you can get the Everyday card, but then you only earn 3% cash back at supermarkets and 2% cash back at gas stations and department stores.
As the card's site says, if you spend just $25 per week at supermarkets, you can receive over $75 in cash back by the end of the year -- which pays the annual fee. But it gets better than that. Let's look at the math for my family using the Preferred card:
- We spend roughly $4,000 per year at grocery stores (a bit higher actually, but $4k is a round number and easy to work with).
- At 6%, this card would earn us $240. Subtract the annual fee, and we'd still be $165 ahead (and this doesn't even add in the $100 sign-up bonus).
- Plus this doesn't include the above average cash back amounts on gas and department store purchases -- which I'm just considering to be gravy for this quick analysis.
If we went with the Everyday card, we would earn $120 in grocery-only cash back (with no annual fee.) If we used a straight 2% cash back card (like my FIA Services card), we would net out with $80. Therefore, you can see what a great deal the preferred card is.
Once again, to get the Preferred card, click here: Blue Cash Preferred(SM) Card from American Express. Then be sure to select the card option on the right.
And while I'm on the subject of making money with credit cards, I wanted to remind you of the $625 deal ($500 if you want cash) still available on the Chase Sapphire℠ Preferred Card. If you want details on it, see How You Can Make Over $600 for Very Little Effort.
A couple closing thoughts on the subject of making money with credit cards:
- Of course, all these changes/new cards/shifts one way and then the other are only for those who want to play the cash back game. I realize many of you don't want to, so you can ignore these posts.
- Since people are asking (and I'm tired of writing new posts every time I find a great, new card), I'll soon be working on two new posts around what I consider to be the best cash back credit cards and what I consider to be great "deal-based" credit cards. I'll then change those posts as new cards come in and out and simply highlight a link when they are updated. This way, I won't need to take up posting space again and again with new card offers. I hope to have these done in the next month or so.
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