American Express EveryDay® Preferred Card Review: Is It Right for You?

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Pros Cons Earn bonus points on qualifying U.S grocery store and U.S. gas station spending categories Annual spending cap on bonus points on U.S. grocery store purchases Earn 50% more points if you make 30 or more separate purchases within a billing cycle Annual fee not waived the first year Solid welcome bonus Foreign transaction fee

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4 things to know about The Amex EveryDay® Preferred Credit Card from American Express

1. Earn American Express Membership Rewards® points for several categories

The ability to earn extra points on certain everyday spending categories makes the Amex EveryDay® Preferred Credit Card from American Express a solid option to carry in your wallet.

This card offers American Express Membership Rewards® points for several spending categories.

• Three points for every $1 spent on purchases at U.S. grocery stores, on up to $6,000 annually (then one point for every $1 spent on purchases after that)
• Two points for every $1 spent on purchases at U.S. gas stations
• One point for every $1 spent on all other purchases

While the Amex EveryDay® Preferred Credit Card from American Express isn’t the only card that offers rewards points in these common spend categories, it does allow you to earn more points than the $0-annual-fee Amex EveryDay® Credit Card. You’d also spend a lot less on an annual fee compared to the American Express® Gold Card, which charges a $250 annual fee. The Amex EveryDay® Preferred Credit Card from American Express charges a $95 annual fee.

2. Earn bonus rewards points with frequent use

Perhaps the most unique perk that the Amex EveryDay® Preferred Credit Card from American Express offers is its extra bonus points benefit, which you get by using the card frequently. If you make at least 30 separate purchases on goods and services within one billing cycle, you can earn 50% additional points on those purchases.

That means you could earn points at these higher rates.

• 4.5 points for every $1 spent on purchases at U.S. grocery stores, on up to $6,000 annually (then 1.5 points for every $1 spent on purchases after that)
• 3 points for every $1 spent on purchases at U.S. gas stations
• 1.5 points for every $1 spent on all other purchases

The bottom line is that this card is truly designed for frequent use in order to get the most points possible. But if you’re considering whether to add it to your wallet, think carefully about how frequently you plan to use it and if you want to make it your primary card.

3. Calculate if the annual fee is worth it

It’s important to weigh the points-earning potential of the Amex EveryDay® Preferred Credit Card from American Express against its $95 annual fee. And since that annual fee isn’t waived the first year, you’ll need to use the card enough from the start to make up for it.

How much is enough? It depends on what you use the card for. Let’s say you want to use it for groceries, but you’re not going to make at least 30 transactions within a billing cycle for that 50% points bonus to kick in. In this scenario, assuming the lowest possible point valuation of 1 point equal to 1 cent, you’d need to spend at least $3,167 on groceries each year to earn enough points to offset the card’s annual fee.

Keep in mind that you’ll earn points at a much faster rate if you use the card for at least 30 transactions within one billing cycle. And those transactions could be for small purchases you likely already make at places such as the corner store, grocery store or gas station.

4. You can earn a decent welcome bonus

The Amex EveryDay® Preferred Credit Card from American Express offers a pretty decent welcome bonus of 15,000 points if you spend $1,000 on eligible purchases within three months of opening your account.

Those 15,000 bonus points are worth between $150 and $300, depending on whether you calculate the value of points at the rate of 1 point equal to one cent or 1 point equal to two cents. Our latest points valuation guide puts the value at around two cents per point.

You can use American Express Membership Rewards points to book travel, buy gift cards or shop online.

The spending threshold to receive the bonus is $1,000 in three months, which shouldn’t be too unreasonable if you use the card for everyday spending. Of course, it’s important not to spend more than you normally would just to get the bonus, so consider whether you’d normally spend $1,000 in three months before applying for this card.

Who this card is good for

As the name implies, the Amex EveryDay® Preferred Credit Card from American Express is most effective if you truly plan to use it for frequent, everyday spending. That’s because in order to offset the card’s $95 annual fee and maximize points, you’d need to use the card for all your grocery store and gas station purchases and make at least 30 transactions per billing cycle to get the 50% points boost.

You’ll also want to keep in mind that grocery purchases must be made at qualifying U.S. supermarkets, which don’t include big-box stores like Target and Walmart or warehouse stores like Sam’s Club and Costco. So if you shop for most of your groceries at those stores, you may want to think about a different card.   

As with any credit card, when considering the Amex EveryDay® Preferred Credit Card from American Express, think about your budget and how you spend your money. It’s never a great idea to spend more than you normally would just to earn rewards.

And take note that this card charges a 2.7% foreign transaction fee. So if you frequently travel abroad, you’ll want to take another card with you instead.

Not sure this card works for you? Consider these alternatives.

If you’re unsure whether the Amex EveryDay® Preferred Credit Card from American Express is right for you, here are several alternatives you may want to consider.

• Amex EveryDay® Credit Card: If you’d prefer a card with no annual fee and somewhat similar benefits, you may want to consider this card.
• Blue Cash Preferred® Card from American Express: This card is a good option if you want cash back on groceries, streaming subscriptions and transit purchases such as gas and rideshares.
• American Express® Gold Card: If you want to earn rewards for both food and travel purchases, this card might be a better bet despite its annual fee.
• Capital One® SavorOne® Cash Rewards Credit Card: If you want a card that offers rewards for everyday spending categories with no annual fee (and aren’t married to American Express), this could be a good option for you.