The Blue Cash from American Express is rated as the best cash rebate card by Kiplinger’s Personal Finance. A few friends have asked why this card would be so popular. Here’s my personal review for this card:

Actually the big name of Blue Cash from American Express comes from the “UP to 5% cash back”. However, at the bottom of the application page, you can find the cash rewards details:

^”Everyday Purchases” are Eligible Purchases made at U.S. supermarkets, gas stations and drugstores, in each case that are not departments of superstores or warehouse clubs.

Until you spend at least $6,500 total on the card, you receive 1% at grocery stores, gas stations and drugstores, and 0.5% on everything else. After you reach the $6,500 point, you can start earning the full 5% on grocery/gas/drugs and 1.5% on everything else.

In order to get that $6,500 point, you have to spend at least $6500/12=$542 per month. It’s quite understandable to hear the complains about this card. It’s just because they can charge more than $500 per month one a single credit card. So it’s quite straightforward that this Blue Cash from American Express is only suitable for those who spend a lot on credit card and can easily reach the $6,500 threshold.

Other thoughts:

If you can pay your rent online with your credit card, I think this is a right card for you. Because you can easily spend $6,500 on this card.

If you prefer simplicity and only want to use one card for all your expense, then this might be a right card for you.

In a word, you have to make a lot of purchases on gas/drugstores/groceries and can easily pass the $6,500 point early in a year.

If you are a college student, I suggest the Citi mtvU card for college students (review).

Or you can also think of the Chase Freedom Card.