The Blue Cash Everyday from American Express is one of the latest to hit the American Express line of credit cards. Just like many of the others offered by the company, it cites a number of incentives, such as a welcome bonus, 0% intro APR for 12 months, and no annual fee. But how does it all add up in the end and what is the catch, if there is one? We’re going to break it down and see what kind of card the Blue Cash Everyday really is.
The Blue Cash Everyday comes with a typical introductory offer, which is 0% APR for 12 months. After this introductory period, the APR will be 12.99% – 21.99% variable rate on purchases. Market conditions, which are based on the prime rate, help determine the rate. The rate is also based upon creditworthiness at the time the account is opened.
It should be noted that the APR introductory offer may be terminated if the minimum payment is 60 days late, which also results in a penalty APR being applied (see below).
APR rates on other transactions include (all rates subject to change based on prime rate):
- Variable APR of 12.99% – 21.99% on balance transfers that are requested within the first 30 days of the account opening. Interest is charged at the time of the transaction.
- A rate of 25.25% on cash advances, which is charged the day of the transaction.
- Purchases only at 0% APR for the first 12 months.
- A penalty APR of 27.24%, or the percentage at the time, when it applies. This is the APR that is applied when payments are 60 days late, even during the introductory period. This rate will apply for 6 months or until timely payments are made after the 6 months.
- A penalty APR of 27.24% if a payment is returned and will apply for 6 months or until payments are made on time and no more payments are returned.
- The due date is 25 days after the billing period closes. No interest is charged if the entire balance is paid off before the payment is due.
- The interest rate is determined based upon what the prime rate is two days before the statement closing date.
Welcome Bonus And Cash Back
As for the welcome bonus, it can change from time-to-time. The welcome bonus typically enables an individual to receive cash back if they charge a certain amount of money to the card within a specific amount of time. For instance, a person can receive $100 cash back if they charge $1,000 to the card in 3 months and the account is in good standing at the end of the period.
However, this cash back offer converts the money into reward cash that is then redeemed as a statement credit. This welcome bonus is not available to anyone who has previously had a Blue Cash Everyday credit card within the past 12 months.
Once the 3 month cash back period is complete, cardholders can receive cash back in the form of reward dollars on eligible transactions, such as 3% at all standalone supermarkets in the U.S., 2% at all standalone gas stations in the U.S., 2% at specific department stores, and 1% on all other purchases.
It usually takes 6 to 8 weeks before the cash back can be redeemed and at an amount no less than $25.
Furthermore, the list of eligible purchases is subject to change at any time, but there are no rotating reward categories. This means that the cash back rewards can be received any time of year rather than certain times of the year. Rotating reward periods tend to only allow a person to receive cash back on a certain type of transaction 3 months out of the year. In this case, you simply adhere to the list of eligible purchases, which is something that many cardholders do prefer.
One of the major sellers with this card is the absence of an annual fee. Transaction fees include $5 or 3% of the transaction amount on balance transfers, $5 or 3% of the transaction amount on cash advances, 2.7% of the amount of each foreign transaction after it is converted to U.S. dollars. Penalty fees include a late fee of up to $35, returned payment fee of $35, and there is no overlimit fee. Penalty fees are charged in addition to penalty interest.
But there are nice perks that are offered by the Blue Cash Everyday Card from American Express. One is the referral bonus, which American Express offers with a number of its cards. There is no limit to the number of friends that can be approved. However, that friend must apply through an email link that shows who referred them. If they are approved, it can take 6 to 8 weeks for the reward dollars to show in the account.
The Blue Savings Program is also a nice program from American Express. It enables cardholders to save additional money at hotels, retailers, restaurants, and more. In order to receive these discounts, the card must be enrolled in the program and used to make the purchases. The list of merchants where discounts can be received is provided with membership in the program.
There are even some American Express-specific programs that help consumers. For instance, eligible items that have been purchased with the card are protected against theft or accidental damage for 90 days after purchase. If a customer tries to return an item to a merchant within 90 days and the merchant won’t accept it, American Express will make sure it is returned. Cardholders can even receive free extended warranties through the included Buyer Assurance Program, which means receiving an additional year of protection in addition to the manufacturer warranties of the items purchased with the card.
American Express has a number of very beneficial programs and they do not fall short in the area of rewards and incentives. In fact, the Blue Cash Everyday is one of the very few cards on the market that allow cardholders to receive cash back on purchases from any standalone department store or gas station. There is no specific list. While the cash back rewards do not come in the form of actual cash, the savings can add up in the course of the year. One word of caution, however, is that the card should be managed carefully to avoid high APR and premature termination of the introductory APR. The APR is moderately competitive as is, so it is ideal to avoid any actions that could result in an increase to the maximum rate. If an increase does occur, good management of the card means that the APR can go back down after 6 months and that is something that not every card on the market allows.
Have you had any personal experience with Blue Cash Everyday from American Express?