Following yesterday’s Chase Freedom comparison, today I’ll compare two no annual fee options from American Express. In this edition of Credit Card Madness it’s the American Express Everyday vs. the American Express Blue Cash Everyday. As the names imply, these cards are intended to be used on everyday purchases. In years prior, consumers generally only used credit cards for larger purchases and stuck with cash or debit for everyday purchases. American Express tried to shift consumer spending habits with the introduction of the ‘Everyday’ series of cards. Neither card comes with an annual fee, but one is a Cash Back card and the other earns American Express Membership Reward points.
American Express Blue Cash Everyday
Blue Cash Everyday from American Express is a no annual fee cash back credit card. As with most Cash Back cards, Cash Back earned as a percentage of purchases. Unlike most cards, Cash Back can only be redeemed in the form of statement credits. The card does come with some fairly interesting benefits that make this card worth considering.
Key Benefits
- 0% APR on purchases and balance transfers for the first 12 Months.
- No Annual Fee.
- $100 Cash Back sign-up bonus after spending $1,000 in the first 90 days following account opening.
- Current bonus offer: Earn 10% Cash Back on restaurant purchases for the first 6 months following account opening. Limited to $200 Cash Back.
- 3% Cash Back on the first $6,000 spent at U.S Supermarkets. 1% after the first $6,000
- 2% Cash Back on all purchases made at U.S. Gas Stations and select U.S. Department Stores.
- 1% Cash Back on all other purchases.
Benefits Overview
It’s hard to put a fixed value on what the above benefits represent because so many people spend differently. At vary least we can assume card holders will maximize the Supermarkets benefit which nets $180 in cash back (minimum). Let’s also assume new applicants maximize the sign-up bonus and the current 10% back at restaurants offer, which nets a total of $300 in Cash Back. Effectively, new applicants can expect to receive a minimum of $480 of Cash Back in the first 12 months of carrying the card. Not too bad! After the first twelve months, Cash Back totals can vary dramatically based on spending habits.
I personally love that this card offers Unlimited Cash Back at U.S. Gas Stations and U.S. Department stores. Department stores are an area of spend that most credit cards do not directly offer bonuses on. Most credit cards require card holders to shop through an online portal to earn bonus points on department store spending.
American Express Blue Cash Everyday Summary
The American Express Blue Cash Everyday card is a traditional credit card unlike other Amex charge card. This allows consumers to carry a balance at the end of each month whereas a charge card is due in full. As far a Cash Back credit cards go, the Amex Blue Cash Everyday offers incredible value when making purchases at U.S. Supermarkets, U.S. Gas Stations, and U.S. Department stores. That being said, limiting Cash Back to only allowing statement credits could be an issue for some customers. It is hard to say exactly how much value you can get out of this card each year, but card holders can receive a minimum of $180 Cash Back when maximizing the 3% back at Supermarkets. This card is also a great option for people who spend at brick and mortar department stores or directly on the stores website.
A full listing of additional benefits and card overview are found here.
American Express Everyday
The Everyday card from American Express is a no annual fee credit card that offers rewards through Amex’s Membership Rewards program. The card offers some benefits, but earns the most value when used at least 30 times in a calendar month.
Key Benefits
- 0% APR on purchases and balance transfers for the first 12 Months.
- No Annual Fee.
- Earn 10,000 rewards points after spending $1,000 on eligible purchases within the first 90 days following account opening.
- 2 rewards points per $1 spent on the first $6,000 spent at U.S Supermarkets. 1% after the first $6,000
- 1 rewards point per $1 spent on all other purchases.
- Access to American Express Membership Rewards Offers.
- 20% bonus points after making at least 20 purchases in a month.
Benefits Overview
Honestly, there is no sugar-coating the lack of benefits offered from the basic American Express Everyday card. A major benefit of the card is earning Membership Rewards points. MR points can offer some incredible value when transferred to an Airline or Hotel transfer partner. Also at various times throughout a year, transfer partners offer bonuses for transferring points. Years ago I transferred MR points to British Airways at a 50% bonus. I have since redeemed those points for 5 one-way tickets on American (a OneWorld Partner).
Another benefit to this card is access to American Express offers. Amex offers are essentially coupons which are when added to your card provide additional savings. An example of a current offer is a $50 rebate after spending $200 at sunglass hut. Some offers are significantly more valuable than others and offers do expire over time. If used properly on purchases you would otherwise make, Amex offers could provide a significant amount of savings in a year.
American Express Everyday Summary
If you have never had a rewards credit card before and plan on making at least 20 purchases on the card each month, the American Express everyday card could be a great fit for you. Each month you make 20 or more purchases, you earn an additional 20% bonus on the points already earned.
Again, due to various spending habits it is hard to predict how many points someone would earn each year. Assuming someone opens the card and maximizes the U.S. supermarket benefit AND the 20% monthly bonus, its highly feasible to earn well over 30,000 Membership Rewards points in the first year of carrying the card. I personally value Membership Rewards points around $0.015/point as I do with most flexible currencies. In this case its possible to get at least $450 value from the card in the first year.
And The Winner Is!
With that, it is time to declare winner to advance to the next round of the competition and surprisingly I find myself favoring the American Express Blue Cash Everyday card.
I’ll admit when I started this comparison I anticipated the Amex Everyday card to win, but the Blue Cash Everyday surprised me. Both cards were limiting in the way you can redeem cash or points. Membership Rewards points can be valuable, but can just as easily be a terrible value if used incorrectly. At least with Cash Back you know exactly how much value you are getting from your rewards.
Additionally, I was disappointed that neither cards waived foreign transaction fees and in fact that rewards earning on both cards was limited to “U.S.” establishments. In today’s world it is becoming easier and easier to travel abroad. Carrying either of these cards could be limiting if you ever decided to leave the country.
Lastly, I think it was the pure simplicity of the Blue Cash Everyday that won me over. I think it would get frustrating trying to remember how many times you used a card each month. I also think it would be equally frustrating trying to redeem the limited number of Membership Rewards points you would earn from the standard Everyday card.
Final Thoughts
Compared to the Chase and BackAmericard rounds of Credit Card Madness, this comparison was extremely underwhelming. I assumed American Express would offer the most overall value when compared to the other two issues. Both of these Amex cards were overall underwhelming. The good news is the winner of this round will go on to face cards from other issuers. Stay tuned.
