AMEX Blue Cash Preferred ® vs Blue Sky and Chase Sapphire Preferred Cards

The other day I discussed the differences between the American Express Blue Cash Everyday ® and Blue Cash Preferred ® product, and how one can earn 6% cashback on nearly everything. I was asked by reader MCB to highlight how the Blue Cash Preferred ® card also compares to the AMEX Blue Sky/Blue Sky Preferred products and even the Chase Sapphire Preferred. So lets take a quick look at the major differences.

* Earn 150 Reward Dollars after you make $1,000 in purchases in the first three months of Card membership.
** After spending $3,000 in the first 3 months

So the question becomes, does one card standout better than the others? I am going to put myself in this situation, and assume I only have to pick one card. Keep in mind, everyone’s spending and earning preference (cashback, miles, etc.) is different, so your pros and cons might totally differ, and that is great! Also keep in mind, any opinions on the pros and cons of a card are strictly my own, and just because I may not like a card, does not mean it does not have a place for certain customers.

Up first, the Blue Sky and Blue Sky Preferred cards. Both cards really do nothing for me. If I was doing a bunch of credit card applications at the same time, and was out of options since I already had other cards, I might consider adding these cards to my wallet. My opinion is if I am going to use my credit to obtain a new card, I need to see some value for my time. Neither of the new customer bonus’ really do much for me, nor does the double points from the Blue Sky Preferred card. I also do not really like that my points are limited to redemption in airline, hotel, and car rental categories.

So my choice would come down to the Blue Cash Preferred® Card from American Express or the Chase Sapphire Preferred. I really like the 40,000 points offered by the Chase Sapphire Preferred card, plus the first year annual fee is waived. In addition, if all your first $3,000 in purchases are in categories outside of the dining and travel related expenses, one essentially earns 43,000 miles for using the Chase Sapphire Preferred card. If all of your $3,000 in spending are in dining and travel, you will get 46,000 Ultimate Rewards miles for opening the Chase Sapphire Preferred card. That is a pretty nice new customer bonus. Miles from Chase can be used in the Ultimate Rewards program, and have the flexibility of being transferred to various airline programs at a 1:1 ratio.

The downside with the Sapphire Preferred card is one only has the ability to earn double miles on dining and travel related expenses. Besides the nice start-up bonus, long-term earning would be limited to double points on dining and travel and a single point on all other purchases.

$3,000 = 43,000 – 46,000 Ultimate Reward points = roughly $0.07/point. I value 43,000 points/miles at a minimum of $430, which is quite a nice return on using the card. 40,000 miles transferred to an airline, say United, also gets me in coach to Hawaii from the continental U.S. Based on when we went to Hawaii last month, tickets can easily cost $700-1000, so there is quite a bit of value that could be received from the Chase Sapphire Preferred product.

So how would that compare to the Blue Cash Preferred® Card from American Express? If we put $3,000 on the Blue Cash Preferred® Card from American Express, and assuming I was able to take full advantage of the 6% cashback at grocery stores by purchasing gift cards to use at other restaurants, travel, general shopping, etc., I would earn $180 in cashback. Pair that with the $150 bonus – $75 annual fee, and one is still walking away with $255 for opening the Blue Cash Preferred® Card from American Express and using it to make the same spend as that required with the Chase Sapphire Preferred product. While that cashback does not quite compare with the value of the Chase 40,000 Ultimate Rewards bonus, I still would have a hard time turning the Blue Cash Preferred® Card from American Express down over the long term.

If you would like to see how the various cards stack up against each other, one can also visit our Credit Card page that lists the cards side-by-side.

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