Blue Cash from American Express Review

You'll have to spend more than $6,500 to get the advertised five percent cash-back reward, and you have to wait more than a year to see any rewards. But the American Express Blue Cash Card is still a decent deal.

• People who want to earn cash rewards on their credit card purchases.

Credit Rating Required

• Fair to Excellent (660+)

Pros

• Attractive, unlimited spending rewards.
• Higher rewards earned on "everyday" purchases.

Cons

• Real rebate rate is not as high as advertised.
• Fairly high APRs.
• Long waiting period to get your reward (13 months).

Rewards

• One percent cash back on "everyday" purchases at supermarkets, drug stores, and gasoline stations under $6,500; 0.5 percent on all other purchases.
• Five percent cash back on everyday purchases of $6,500 or more, 1.25 percent on all other purchases.

APRs

• Zero percent on purchases for the first six months.
• 17.24 percent to 21.24 percent after that, depending on your credit history.
• Penalty APR: 27.24 percent.

Fees

• No annual fee.
• Late fees: $19 on balances up to $250, $39 on balances over $250.
• Returned payment fee: $38.
• Balance transfer fee: 3 percent of balance.

The main selling point on Amex's website is that you "earn up to five percent cash back" with the Blue Cash Card (not to be confused with the American Express Blue Card which rewards points instead of cash). Well, yes and no. You don't start to earn five percent back until you've spent at least $6,500 on the card.

The reality is that you only earn one percent cash back on the first $6,500 of spending on "everyday" purchases such as gasoline and groceries, half a percent on all other purchases. After you meet the $6,500 threshold, you earn five percent back on gas and groceries and 1.25 percent on all other purchases. That's a lot of spending before the full rebate level kicks in.

You also have to wait a long time to get the rewards you've earned. Amex gives your reward in the form of a statement credit one month after your first year as a cardholder. That means you have to wait 13 months before you see any reward. By comparison, other cash-back cards, such as those by Discover and Chase, allow you to redeem rewards as soon as you've earned $20 or $25, although you do have to redeem the rewards yourself. I think that way is better.

There's no annual fee, but the APRs are fairly high, especially if you don't have the best credit. However, if you're using a card to earn rewards on purchases, you should never carry a balance.

Deceptive advertising aside, the Blue Cash Card is not a bad deal, but not the best cash-back card, either. One year to wait to receive your reward is also too long.