PHOTO: American Express is offering Blue Cash Everyday. (photo courtesy of Thinkstock)
If you’re looking for a no-fee credit card that rewards you for dining out, the Blue Cash Everyday Card from American Express might fit the bill.
For a limited time, this card is offering 10% cash back at U.S.-based restaurants with a cap of $200. That means you’ll earn 10% back on your first $2,000 in restaurant purchases for the first 6 months.
Blue Cash Everyday Card from American Express Details
In addition to the bonus earnings, this card offers plenty of other ways to earn cash back:
— Earn $100 cash back after you use your card for $1,000 in purchases within the first three months of card membership.
— Earn 3% cash back on your first $6,000 in grocery purchases each year.
— Earn 2% cash back at gas stations and select U.S. department stores, along with 1% back on all other purchases.
— No annual fee.
— Cash back is received in the form of award dollars that can be redeemed as a statement credit.
— Get 0% APR on purchases and balance transfers for 12 months. A balance transfer fee applies.
How to Get the Most Out of the Blue Cash Everyday Card from American Express
If you love dining out at restaurants (who doesn’t?) and buy plenty of groceries, it might be hard to find a better no-fee card than the Blue Cash Everyday Card from American Express.
With the ability to earn $300 in the first six months (signup bonus + restaurant bonus), 3% back at grocery stores, and 1-2% back on other purchases, the rewards you earn can add up fast.
Here are some tips that can help you extract maximum value:
— Use your card for all grocery purchases up to $6,000 each year. Since you’ll earn 3% back up to the limit, you should use this card for all grocery purchases until this category is maxed out each year.
— Maximize other bonus categories. Use your card for all gas station and department purchases to rack up 2% cash back.
— Pair your card with another cash back card with different bonus categories. A different no-fee cash back card can help you earn more than the standard 1% back in other categories. Consider the Chase Freedom, which offers 5% back in categories that rotate every quarter.
— Pay your balance in full each month. Never carry a balance if you want to benefit from cash back. If you pay interest on your purchases, any “rewards” you earn will pale in comparison.
Where the Blue Cash Everyday Card from American Express Falls Short
While this no-fee cash back card is a real winner, it may not be the perfect card for everyone. If you spend a ton on groceries, for example, you could do better with a different card.
The Blue Cash Preferred from American Express offers a whopping 6% cash back on grocery purchases, albeit with an annual fee.
Another downside to this card is the fact you can only redeem your points for statement credits. If you want to rack up points for travel or use your points for merchandise or gift cards, you may want to choose a card with more flexible options.
READ MORE Which Travel Credit Card is Best for Beginners?
While the Blue Cash Everyday Card from American Express may not be perfect for everyone, it is offering 10% back on your first $2,000 on restaurant purchases for six months.
And remember that’s on top of the regular signup bonus and the 1-3% back you earn on other purchases. Best of all, this card never charges an annual fee.