Wells Fargo Active Cash Card vs. the Blue Cash Preferred Card from American Express [CNET]

The Blue Cash Preferred and the Active Cash are both great choices, but which one is better for you?

The Wells Fargo Active Cash® Card is one of the best cards for general spending, while the Blue Cash Preferred® Card from American Express offers one of the highest cash-back rates available for purchases made at U.S. supermarkets and for select U.S. streaming subscriptions. 

While the two cards go great together, if you have to choose between them, pick the Active Cash. It may not be as rewarding, depending on how much you spend on U.S. supermarket, select U.S. streaming subscriptions and U.S. gas station purchases, but it has no annual fee and also comes with an easier-to-obtain welcome bonus and a longer introductory APR offer. 

If you’re in need of a credit card that earns more rewards on U.S. gas stations and groceries at U.S. supermarkets, however, choose the Blue Cash Preferred. While it carries an ongoing annual fee, the rewards rate is so high your return can essentially quickly cover it. The best choice is to get both cards and use them together — the Blue Cash Preferred on groceries, gas, transit and streaming, and the Active Cash on other purchases.

Comparing rewards programs

Winner: Blue Cash Preferred

The Blue Cash Preferred earns more rewards than the Active Cash at U.S. supermarkets, select U.S. streaming subscriptions, at U.S. gas stations and on transit. If you’re shopping elsewhere, however, the Active Cash will earn more.

The Blue Cash Preferred earns:

• 6% cash back (on the first $6,000 spent each year, then 1%) at U.S. supermarkets
• 6% on select U.S. streaming services
• 3% at U.S. gas stations
• 3% on transit including taxis/rideshare, parking, tolls, trains, buses and more
• 1% for other purchases
• Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit

The Active Cash earns:

• Unlimited 2% cash rewards on purchases

Here are a few simulated examples of yearly spending with both cards:

Spending examples

	U.S. supermarkets	Select U.S. streaming subscriptions	U.S. gas stations	Transit	Other	Total spending
Yearly spending	$3,600	$300	$650	$150	$1,000	$5,700
Rewards from the Blue Cash Preferred	$216	$18	$19.50	$4.50	$10	$268.00
Rewards from the Active Cash	$72	$6	$13	$3	$20	$114.00

However, the Blue Cash Preferred does carry a $95 annual fee ($0 intro annual fee for the first year). Subtracting that from the total rewards — $268 — would make the yearly return $173 after the first year, which is still greater than what you’d earn using just the Active Cash for your spending.

However, the Blue Cash Preferred becomes less valuable the less you spend on groceries, streaming, gas, and transit. Before getting the card, try calculating the potential rewards based on your own spending habits to decide whether it’s worthwhile for you.

The best strategy here would be to use both cards in tandem, considering the Active Cash doesn’t require an annual fee. Use the Blue Cash Preferred where it earns the most and the Active Cash for everything else.

Welcome offer

Winner: Active Cash

Take a look at both credit card’s welcome offers:

• Blue Cash Preferred: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months.
• Active Cash: Earn a $200 cash rewards bonus after spending $500 in purchases in the first three months.

The Blue Cash Preferred offers the higher bonus, but you’ll also have to spend $2,500 more to reach it. However, you’ll have six months compared to the Active Cash’s three-month limit. That breaks down to an average spend of $500 per month for the Blue Cash Preferred and about $167 per month for the Active Cash.

Considering the Blue Cash Preferred’s welcome offer is only $50 higher than what the Active Cash provides for more than triple the spending threshold, the better bonus is the Active Cash card’s. But, if you can meet the spending requirements with your normal spending, the Blue Cash Preferred’s bonus is slightly more lucrative. 

Introductory APR offer

Winner: Tie

Both cards provide the same introductory APR offer:

• Blue Cash Preferred: 0% intro APR for purchases and balance transfers for 12 months from account opening (then 19.24%-29.99% variable).
• Active Cash: 0% intro APR for purchases and qualifying balance transfers for 12 months from account opening (then 20.24%, 25.24%, or 29.99% variable APR)

While neither card is exactly ideal for a balance transfer (better balance transfer cards offer introductory 0% APR periods of up to 21 months), either is a decent option if you want to pay down some credit card debt.

Additional card perks

Winner: Blue Cash Preferred

Here are the additional card perks that come with both credit cards:

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Card perks

Blue Cash Preferred	Active Cash
Purchase protection*	Cell phone protection on damage or theft
Extended warranty*	Visa Signature® Concierge
Return protection*	Luxury Hotel Collection
Car rental loss and damage insurance*
Global Assist Hotline
Free ShopRunner membership
Amex Offers
$84 The Disney Bundle credit annually (up to $7/month statement credit after you spend $9.99 or more each month on an eligible subscription; subject to auto renewal). Valid only at DisneyPlus.com, Hulu.com or Plus.espn.com in the U.S.

The Blue Cash Preferred offers far more benefits than the Active Cash, which makes sense considering it carries an annual fee. If you can take full advantage of the Disney Bundle credit, the value of those statement credits alone can almost essentially offset the annual fee.

However, the Active Cash does offer a good number of perks for a credit card without an annual fee.

Annual fee

Winner: Active Cash

The Blue Cash Preferred has a $95 annual fee ($0 intro annual fee for the first year) whereas the Active Cash has none. Looking at the annual fee alone, the Active Cash is the winner. 

However, in exchange for the Blue Cash Preferred’s annual fee, you earn one of the highest cash-back rates at U.S. supermarkets and for select U.S. streaming subscriptions, plus greater rewards for U.S. gas stations and for transit purchases. It also translates to more card perks.

If you spend $1,600 yearly in the Blue Cash Preferred’s highest rewards categories — U.S. supermarkets and select U.S. streaming subscriptions — you’ll earn $96 in rewards, enough to essentially offset the annual fee.

According to the U.S Bureau of Labor Statistics, households spent upwards of $5,000 on groceries in 2021. With that in mind, it shouldn’t be a difficult threshold for most people to meet. The 3% cash back on U.S. gas stations and transit also helps offset the cost.

How Wells Fargo Active Cash® Card and Blue Cash Preferred® Card from American Express compare to other cards

CNET’S PICK

Intro Offer

$200 cash rewards Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.

Annual fee

$0

APR

20.24%, 25.24%, or 29.99% Variable APR

Intro Purchase APR

0% intro APR for 12 months from account opening

Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

2% Earn unlimited 2% cash rewards on purchases

Intro Offer

Earn $250 Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.

Annual fee

$0 intro annual fee for the first year, then $95.

APR

19.24% – 29.99% Variable

Intro Purchase APR

0% on purchases for 12 months

Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

1% – 6% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%); 6% Cash Back on select U.S. streaming subscriptions; 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more; 3% Cash Back at U.S. gas stations; 1% Cash Back on other purchases

Intro Offer

No current offer

Annual fee

$0

APR

18.24%, 24.74%, or 29.99% Variable APR

Intro Purchase APR

0% intro APR for 21 months from account opening. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.

Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.

Good – Excellent

Rewards rate

N/A This card doesn’t offer cash back, miles, or points

FAQs

For rates and fees of the Blue Cash Preferred Card from American Express, click here

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

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