American Express Everyday Preferred

Summary

Pros Cons
Rewarding Grocery Credit Card $95 Annual Fee
50% Point Bonus for 30 Transaction a Month Foreign Transaction Fees (2.7%)

American Express Card (Less acceptance worldwide) 

Considerations Before Applying/Credit Score Needed

Before applying for this card, keep in mind that this is an American Express credit card, and as such, requires you abide by American Express’ credit card guidelines. The main things to be aware of is you cannot get approved for more than one American Express card within a 5 day period, cannot get approved for more than 3 cards within a 90 day period, and finally, you cannot hold more than 5 credit cards with American Express. 

On the bright side though, if you happen to already have an American Express card, chances are that you will not get a hard inquiry when you apply for the card. The only real instance this happens on a repeat American Express customer is if the customer barley got approved for their first credit card. 

If you are considering applying, wait until you have at least a 680 credit score. While it’s possible to get approved with a lower score, it would be better if you at least have this high of a score. 

Sign Up Bonus/Annual Fee/Foreign Transaction Fee

As far as the sign up bonus, you have the potential to earn 15,000 points after spending $1,000 within the first 3 months. If you value the points at 2 cents per point (TPG), then the sign up bonus is worth $300 for spending $1000. That’s a total return of 30%!

As far as fees, there is an annual fee of $95 on the card, as well as a foreign transaction fee of 2.7%. 

Reward Categories

The reward categories on the card are as follows:

3x: US Supermarkets (6k per year max)

2x: US Gas stations

1x: Every other purchase 

Other Notable Benefits

If you take the name of the credit card to heart, and actually use it Everyday, you could be very well rewarded. Every month where you make 30+ transactions on the card, you will earn a 50% bonus on all of the points you have earned on the card that month. This alone has the potential to push the rewards of the Supermarket category up to 4.5x, more than even the Gold card. Of course, with the same bonus, the gas category would be 2.5x and every other purchase would be worth 1.5x.

Cards This Competes With

Just due to the unique reward categories on the card, it’s a little difficult to find a card that competes with this card. The best competitors are actually American Express’ own cards. 

The Everyday card from American Express is a very similar card to the Everyday Preferred. The main difference is that the Everyday does not feature an annual fee, and as such, does not give as high of a reward for its supermarket spending. If your grocery spending is enough to justify the annual fee on the Everyday Preferred, you not only get an increase in the reward category but you’ll also get the a category for gas stations as well. If you can’t justify the annual fee, than the Everyday card would be good enough.

Additionally, there is the Gold card. The sign up bonus on the Gold card is 35,000 for spending $2,000 within the first 3 months compared to 15,000 points for spending $1,000 within the first 3 months. When it comes to reward categories, the Gold card earns 4x back on restaurants and US supermarkets, 3x on flights and 1x everywhere else. The Everyday earns 3x on supermarkets and 2x on gas. However, it can be worth up to 4.5x if you are able to make 30 transactions per month. If supermarkets are the category you care about, this may be a tough decision to make. How many transactions you can make per month would dictate which card you should get for the supermarket category. Other than supermarkets, the Gold card is pretty different, offering more credits but asking a higher annual fee for those credits. 

Cards This Pairs Well With

The main feature on this card is that it offers the potential to earn a ton of points at supermarkets within the U.S. Not too many cards offer this category, so it would be best to pair this card with cards that do not earn at supermarkets. You could make the case to include this in an American Express setup due to the supermarkets AND gas categories. Of course, if you do have a Blue Business Plus card, you would be earning 2x at a minimum anyway. The value of the Everyday Preferred in this setup depends entirely if you can get the bonus every month or not.  

Final Thoughts

The Everyday category of American Express cards are an interesting one. They are both the membership reward point version of the Blue Cash cards. The part that makes these cards exciting is they offer a bonus if you do in fact use the cards Everyday and get a certain number of transactions per month. That bonus can really make the difference, and potentially makes the Everyday Preferred Card one of the most valuable cards in American Express’ lineup.

For me personally, supermarkets are a pretty big category in my spending. The Gold card would give you a guaranteed 4x on supermarkets. However, if you are able to use the Everyday Preferred 30 times in a month, you would actually earn 4.5x on supermarkets. The other nice bit about this card is the gas category, just for an overall roundup. Depending on how you value these points (we value them at 2 cents per point), it could be the most rewarding card for these its categories. 

Is 30 transaction per month an attainable goal to get a 50% bonus? Let us know in the comments down below!

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