The Blue Cash Everyday card from American Express has been around for a while, but American Express implemented some changes to it in the summer of 2011. It is a cash back card, which customers enjoy. Customers’ former complaint about American Express Blue Cash Everyday was that they had to spend too much using the card to make its cash – back provisions valuable to them. In response to that consistent complaint, American Express changed the terms of usage so that there are not so many purchases required now to activate the maximum level of cash – back rewards. In researching material for this American Express Blue Cash Everyday card review, it seems that Amex’s alterations have made all parties happy.

How It Works

The American Express Blue Cash Everyday is a credit card that returns a prescribed percentage of specific types of purchases to the customer. Cash rewards are not automatic, but have to be requested. Cash rewards are awarded in the form of “Reward Dollars” that the customer can redeem for cash, gift cards or merchandise. Unlike other cash reward cards, this one has no cap on the amount of Reward Dollars that any specific customer can earn. Chase and Capital One cash-back cards have been available for some time, and it appears that Amex is focused on providing the greatest value of all cash-back cards.

The card pays varying amounts in rewards. It pays its highest percentages on purchases made at locations that typically sell everyday items. This is in stark contrast to other cash reward cards that pay higher rates of rewards on occasional or big – ticket items. This card pays:

• 3% at supermarkets
• 2% at gas stations and department stores
• 1% at other types of retailers

Another benefit is that American Express welcomes new users by offering a $100 reward when the new account holder spends $1,000 in eligible purchases during the first three months that s/he holds the card. There is no annual fee, so the value of the initial Reward Dollars is not diminished either by an annual fee or a usage fee.

Pros and Cons

The current version of the card must not be confused with its predecessor. Originally, customers earned 5% on everyday purchases and 1.25% on other types of purchases, but only after spending $6,500 using the card within the calendar year. Customers complained that the spending threshold was far too high. American Express responded by eliminating the spending threshold entirely. What this means for customers is that they can begin earning cash rewards from the beginning, and earn those rewards on every purchase they make using the card.

Another advantage of this card is that there is no cap on the number of Reward Dollars that customers can earn. This is in stark contrast to most other cash – back cards, which limit the monetary value of cash rewards available to any single customer in a calendar year. This is not the case with this card. There is no limit to the number of Reward Dollars that any customer can earn by using the card.

The interest rate on this card can be seen as a “pro” by many users, but as a “con” by others. There is no interest at all for the first twelve months, but after that, the interest rate will be either 17.24%, 20.24% or 22.24%, depending on the customer’s credit history. How this is an advantage is that the only way the card can be valuable is if the customer pays off the full balance each month. Otherwise, any rewards accumulated will be decimated by the high interest rates. The high interest is an advantage in that encourages payment of the full balance each month.

The only potential con that surfaced from research for this American Express Blue Cash Everyday review is the generic caution about the use of credit cards in general. Using any card for most purchases and even using it to pay other bills can be dangerous for irresponsible borrowers. Amex is unlikely to extend credit to those with such a history, but card customers do need to remain aware of what they are spending between statements.

Why to Apply

There are not many reasons to apply for most standard credit cards, but this one offers many:

• No annual fee
• No interest for twelve months
• No additional charges for additional account users or their cards
• Highest rewards paid on life’s most common purchases and needs
• No minimum purchase thresholds
• Flexible payments that allow payment over time
• Use the card to make automatic payments, earning Reward Dollars even on bills not originating with Blue Cash Everyday
• Discounts at several retailers, including Hertz and 1-800-FLOWERS.com
• Free $25 Flemings card when paying a bill of at least $100 at Flemings using the card
• Travel accident insurance included
• Car rental loss and damage insurance coverage
• Accident insurance for card holder and family members
• Unlimited cash rewards potential
• Accrued Reward Dollars never expire

The bottom line is that Blue Cash Everyday from American Express is an excellent credit card program overall, and it appears to be the best cash back card available for those with superlative credit.