Card Comparison: Chase Freedom vs. Amex Blue Cash Preferred

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Many cards are similar in nature.  We’ve all seen that before.  But, between cards, which one is truly better?  One such matchup of titans is the very popular Chase Freedom credit card and the Amex Blue Cash Preferred credit card.  Which one is better?  Let’s see if we can decipher the true winner below, in yet another card comparison!

 

Annual Fee

The annual fee on any credit card is a deal for potential customers, myself included.  So, let’s dive into the details on the annual fees for these credit cards, shall we?  For the Amex Blue Cash Preferred credit card, you’ll have a $75 annual fee, and no fee for any additional cards on the account.  That is pretty high for a cash back credit card.

The Chase Freedom card, on the other hand, has no annual fees, ever.  So, this category goes to the Chase Freedom card, by a landslide.

 

Sign Up Bonus

Another way credit card companies make the importance of their cards known is through the sign-up bonus, a reward for spending a certain amount of money in a certain amount of time.  For the Amex Blue Cash Preferred card, you’ll have no sign up bonus.

For the Chase Freedom card, you’ll receive a $100 cash back credit (or 10,000 Ultimate Rewards points if you own one of their Chase Sapphire cards) when you make $500 in purchases in the first 90 days of card membership.  I’d say the Chase Freedom card wins this round, especially since they’ve been known to raise the bonus to $200 now and then.

 

Bonus Points

This category is where the Amex Blue Cash Preferred card really picks up steam.  If you spend your money at supermarkets, you’ll receive 6% cash back at US supermarkets (up to $6,000 a year).  At gas stations and select department stores, you’ll receive 3% cash back, and 1% cash back on everything else.

The Chase Freedom card gives you 1% cash back on every dollar spent, as well as 5% cash back in a rotating group of categories (Restaurants and Lowe’s for April-June, Gas Stations and Kohl’s for July-September, and Amazon/Zappos/Department stores for the rest of the year).  This category goes to Amex Blue Cash Preferred.

 

Other Benefits

The Amex Blue Cash Preferred credit card includes purchase protection and car rental loss and damage insurance.  The Chase Freedom card offers up access to Ultimate Rewards points if you have another card in the program, like a Chase Sapphire Preferred® Card.  For this category, I’ll say it’s a tie.

 

Conclusion

For this comparison, it’s really hard to declare a winner.  If you spend a lot of money at supermarkets each year, and max out the bonus, you’ll receive $360 in cash back rewards, more than enough to cover the annual fee.  However, if you do most of your dining out, I can’t really see the benefits of the annual fee of the Amex card.  So, analyze your spending, and choose which one is best for you.

We hope that this comparison at least put the pros and cons, side by side, to make your decision making a little easier.  Let us know in the comments what you think!

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